Vijay Solvex - Vijay Solvex

📊 BSE: 531069 🏢 Edible Oil 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations was INR 1,830.73 Cr in FY25, representing a marginal growth of 0.08% over FY24 (INR 1,829.23 Cr). Revenue is primarily driven by the Edible Oil and Vanaspati segments, with additional contributions from Ceramics and Wind Power.

Geographic Revenue Split

Primarily domestic (India), with manufacturing units strategically located near raw material sources in Rajasthan, contributing to nearly 100% of the revenue base.

Profitability Margins

Gross margins improved as the cost of materials consumed fell by 14.7% to INR 1,326.03 Cr in FY25. Net Profit (PAT) margin rose to 1.00% in FY25 from 0.13% in FY24, though it declined to 0.22% in Q1FY26.

EBITDA Margin

PBILDT margin improved to 1.46% in FY25 from 0.24% in FY24, driven by lower raw material costs. However, the margin contracted to 0.60% in Q1FY26 due to the low value-added nature of the business.

Capital Expenditure

Historical capital expenditure is reflected in the property, plant, and equipment additions, with depreciation of INR 2.62 Cr recorded in FY25. Planned CAPEX is not disclosed in available documents.

Credit Rating & Borrowing

The long-term bank facilities are rated CARE BB; Stable (Issuer Not Cooperating), downgraded from CARE BB+ in May 2025. Short-term facilities are rated CARE A4. Ratings were withdrawn in October 2025 at the company's request.

⚙️ Operational Drivers

Raw Materials

Oilseeds and crude edible oil, which represent the primary input for the edible oil and vanaspati divisions.

Import Sources

Not disclosed in available documents, though manufacturing units are strategically located near domestic raw material sources in Rajasthan.

Raw Material Costs

Raw material costs (Cost of Material Consumed) were INR 1,326.03 Cr in FY25, representing 72.4% of revenue, a 14.7% decrease from FY24.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

The company aims to achieve growth by leveraging operational synergies with group entities like Deepak Vegpro Private Limited and VDSD Foods Private Limited. It focuses on maintaining its market position in the edible oil and vanaspati segments while utilizing its strategic manufacturing locations in Rajasthan to minimize procurement costs and ensure proximity to raw material sources.

Products & Services

Edible Oil, Vanaspati, Ceramic products, and Wind Power.

Brand Portfolio

Vijay

Strategic Alliances

Operational linkages with group companies Deepak Vegpro Private Limited (DVPL) and VDSD Foods Private Limited (VDSD).

🌍 External Factors

Industry Trends

The edible oil industry is growing but remains highly fragmented with low entry barriers. Future trends include a shift toward branded products and increased regulatory focus on import-export duties.

Competitive Landscape

Highly fragmented market with intense competition from both domestic participants and cheap international imports.

Competitive Moat

The company's moat is built on its long-standing brand presence and strong operational linkages with group companies, which provide a competitive edge in procurement and distribution. These advantages are sustainable due to the strategic location of manufacturing units near raw material hubs.

Macro Economic Sensitivity

Highly sensitive to food price inflation and changes in government fiscal policy regarding import duties on edible oils.

Consumer Behavior

A gradual shift in consumer behavior toward branded and packaged edible oils is affecting demand dynamics in the domestic market.

Geopolitical Risks

Impacted by global edible oil trade dynamics and potential trade barriers or duty changes on imported crude edible oil.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to food safety standards for edible oils, pollution control norms for the ceramics division, and government policies regarding import duties on crude and refined edible oils.

Taxation Policy Impact

The company reported an effective tax rate of approximately 18% for FY25, with a Net Profit Before Tax of INR 22.49 Cr and a PAT of INR 18.43 Cr.

Legal Contingencies

The company faces pending litigations as disclosed in Note 35 of the consolidated financial statements, which are considered a key rating weakness by CARE Ratings.

⚠️ Risk Analysis

Key Uncertainties

Key risks include the volatility of raw material prices (oilseeds), which can impact margins by over 1%, and the threat of cheap edible oil imports disrupting domestic pricing.