Multibase India - Multibase India

📊 BSE: 526169 🏢 Specialty Chemicals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 8.50% YoY to INR 7,074.87 Lacs. Segment contributions are: Automotive Safety (Airbag Covers) at 38%, Silicon Masterbatch at 32%, Consumer & Industrial at 15%, and Automotive Nonsafety at 15%.

Geographic Revenue Split

The company's customer base is largely concentrated in India, representing the vast majority of the INR 7,074.87 Lacs revenue, though it competes in both domestic and export markets.

Profitability Margins

Gross Profit Margin improved significantly to 37.90% from 30.05% (a 26% increase) due to strategic sourcing. Net Profit Margin rose to 20.66% from 17.23% (a 20% increase) as PAT grew 31.41% to INR 1,465.49 Lacs.

EBITDA Margin

Profit Before Tax (PBT) margin stood at 27.84% (INR 1,969.39 Lacs), up from 23.29% in the previous year, reflecting a 31.34% YoY increase in absolute PBT driven by lower raw material costs.

Capital Expenditure

Not disclosed in absolute INR Cr, but the company is investing in expanding local production capacity at the Daman site for Multiflex and Multibase SiMB grades, scheduled for completion by Q4 2025.

Credit Rating & Borrowing

Not disclosed; however, the company earned interest income of INR 499.80 Lacs from fixed deposits, benefiting from improved interest rates negotiated with banking partners.

⚙️ Operational Drivers

Raw Materials

Specialty raw materials (imported) and key raw materials for Silicon Masterbatch and Multiflex products; specific chemical names are not disclosed.

Import Sources

International markets (specific countries not named), as the lack of specialty raw materials in the Indian market necessitates imports.

Key Suppliers

Onboarded a new international vendor for a key raw material during FY 2024-25, which significantly lowered procurement costs; specific company names are not disclosed.

Capacity Expansion

The Daman site is on track to expand local production of key Multiflex and Multibase SiMB grades by the 4th Quarter of 2025 to meet renewed interest in automotive programs.

Raw Material Costs

Strategic sourcing from a new international vendor improved gross margins to 37.90%. Raw material qualification at the Daman site is ongoing to improve cost positioning for domestic and export markets.

Manufacturing Efficiency

Asset Turnover ratio improved 33% from 0.46 to 0.61, driven by enhanced efficiency in asset utilization following a reduction in cash balances after a special dividend payout.

Logistics & Distribution

Logistics costs are identified as a significant risk factor for imported raw materials, though specific distribution cost percentages are not disclosed.

📈 Strategic Growth

Expected Growth Rate

6.5%

Growth Strategy

Growth will be achieved through the expansion of local production at the Daman site by Q4 2025, qualifying new raw materials to lower costs, and leveraging renewed interest from automotive customers for locally produced Multiflex products.

Products & Services

Automotive Safety products (Airbag Covers), Silicon Masterbatch, Multiflex thermoplastic elastomers, Multibase SiMB grades, and Thermoplastic Additives.

Brand Portfolio

Multiflex, Multibase

New Products/Services

Expanded local production of Multiflex and Multibase SiMB grades is expected to contribute to revenue growth starting Q4 2025.

Market Expansion

Targeting increased share in the Indian automotive program market through localized production and competitive pricing in export markets.

Market Share & Ranking

Not disclosed.

Strategic Alliances

Not disclosed.

🌍 External Factors

Industry Trends

The industry is shifting toward localized production in India to mitigate global supply chain risks. There is a growing trend toward sustainability, with demand for recyclable and over-molded products in the automotive and consumer sectors.

Competitive Landscape

Competes in the thermoplastic additives and automotive components market; competitive positioning is being strengthened through local raw material qualification.

Competitive Moat

Moat is built on the 'Multiflex' and 'Multibase' brand equity and the strategic shift to local manufacturing in Daman, which provides a cost advantage over imported competitors. Sustainability is a key differentiator as products are designed to be recycled and reused.

Macro Economic Sensitivity

Highly sensitive to India's GDP growth (projected at 6.5%) and monetary policy, which influenced interest income (INR 499.80 Lacs) and domestic demand for automotive and industrial products.

Consumer Behavior

Increased customer interest in locally produced automotive components and sustainable, recyclable materials.

Geopolitical Risks

Geopolitical tensions and economic fragmentation are cited as global challenges that could impact supply chains and logistics costs for imported materials.

⚖️ Regulatory & Governance

Industry Regulations

Complies with SEBI (Listing Obligations and Disclosure Requirements) and the Companies Act, 2013. Operations are subject to Daman Industrial Estate regulations and automotive safety standards for airbag covers.

Environmental Compliance

Not disclosed in absolute INR, but the company emphasizes sustainability and the recyclability of its products.

Taxation Policy Impact

Effective tax rate is approximately 25.6% based on PAT of INR 1,465.49 Lacs and PBT of INR 1,969.39 Lacs.

⚠️ Risk Analysis

Key Uncertainties

Fluctuations in global logistics costs and the availability of specialty raw materials in the Indian market could impact margins by over 5-10% if sourcing strategies fail.