💰 Financial Performance

Revenue Growth by Segment

The company reported an operating income of INR 86.02 Cr in FY23, representing a significant growth of 29.74% compared to INR 66.30 Cr in FY22. Segment-specific growth percentages for pipe fittings versus ball valves were not disclosed in the available documents.

Geographic Revenue Split

Not disclosed in available documents; however, the company is shifting its registered office from Tamil Nadu to Gujarat to improve operational convenience, suggesting a strategic focus on the Western Indian industrial corridor.

Profitability Margins

PAT Margin improved significantly to 5.10% in FY23 from 2.03% in FY22, a 307 basis point increase. This was driven by a 227.6% surge in Profit After Tax (PAT) from INR 1.34 Cr to INR 4.39 Cr, indicating improved operational leverage and cost management.

EBITDA Margin

Core profitability as measured by PBDIT/Interest improved from 5.09 times in FY22 to 10.44 times in FY23, a 105% increase in interest coverage, reflecting much stronger cash flow relative to debt obligations.

Capital Expenditure

The company has leased new premises at Halol, Gujarat, for its business operations as of January 2026. Specific INR values for the lease or associated setup costs were not disclosed.

Credit Rating & Borrowing

The company's short-term rating is 'ACUITE A4', which was reaffirmed and subsequently withdrawn in April 2024. The rating was flagged as 'Issuer Not-Cooperating' due to the company's failure to provide necessary information and No Default Statements (NDS). Bank facilities totaling INR 14.65 Cr were rated, primarily with Bank of India.

⚙️ Operational Drivers

Raw Materials

The primary raw materials include stainless steel and spheroidal graphite (SG) iron, used for manufacturing pipe fittings and ball valves. Specific cost percentages for each material were not disclosed.

Capacity Expansion

The company is relocating its operational base to a leased premises in Halol, Gujarat (109-Indralok, Kanajari Road) to carry on business more efficiently. Current and planned MTPA or unit capacity figures were not provided.

Raw Material Costs

Not disclosed as a specific percentage of revenue; however, the improvement in PAT margins from 2.03% to 5.10% suggests better procurement or pricing strategies in FY23.

Manufacturing Efficiency

Manufacturing efficiency is reflected in the PBDIT/Interest ratio doubling to 10.44x in FY23, suggesting that the production of SG and stainless steel fittings is generating higher returns per unit of capital employed.

Logistics & Distribution

Distribution costs are expected to be optimized through the relocation to Gujarat, a major industrial hub, which the company states will allow it to manage business more effectively and economically.

📈 Strategic Growth

Expected Growth Rate

29.7%

Growth Strategy

The company is pursuing a relocation strategy, moving its registered office and operations from Coimbatore, Tamil Nadu, to Halol, Gujarat. This move is designed to enhance administrative and operational convenience, allowing the company to scale more effectively in a major manufacturing state. Growth is also driven by the expansion of its product portfolio in spheroidal graphite and stainless steel fittings.

Products & Services

Spheroidal graphite pipe fittings, stainless steel fittings, and stainless steel ball valves.

Brand Portfolio

National Fittings Limited (formerly known as Interfit Techno Products Limited).

Market Expansion

Targeting the Gujarat industrial region with a new operational base in Halol, expected to be finalized following the postal ballot results in February 2026.

🌍 External Factors

Industry Trends

The industry is shifting toward higher-grade materials like stainless steel and spheroidal graphite for better durability in piping systems. National Fittings is positioning itself by specializing in these materials and moving to Gujarat, a state with high industrial density.

Competitive Landscape

The company competes in the fragmented industrial fittings and valves market; however, its focus on SG and SS materials provides a niche advantage.

Competitive Moat

The company's moat lies in its specialized manufacturing capability for spheroidal graphite and stainless steel components, which require specific technical expertise. This is sustained by its long-standing presence since 1993.

Macro Economic Sensitivity

As a manufacturer of industrial fittings and valves, the company is sensitive to industrial CAPEX cycles and infrastructure growth in India.

Consumer Behavior

Industrial demand is shifting toward more corrosion-resistant and high-pressure capable fittings (SS and SG iron) in sectors like chemicals, oil and gas, and water management.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with the Companies Act, 2013, specifically Sections 12, 13, and 110 for shifting its registered office across states, which requires approval from the Regional Director, Chennai.

Legal Contingencies

The company is currently undergoing a legal-regulatory process to shift its registered office from Tamil Nadu to Gujarat, involving a Special Resolution via postal ballot and subsequent approval from the Central Government/Regional Director.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'Issuer Not-Cooperating' status with Acuité Ratings, which creates an information risk for investors and may impact the company's ability to secure future financing. Potential impact could be a 10-20% increase in cost of capital if credit lines are restricted.

Geographic Concentration Risk

Currently concentrated in Tamil Nadu, but transitioning to Gujarat. The move involves execution risk regarding the transfer of administrative and operational functions.

Third Party Dependencies

Dependency on Bank of India for the majority of its INR 14.65 Cr credit facilities.

Technology Obsolescence Risk

The shift toward stainless steel and SG iron suggests the company is keeping pace with material science trends in the fittings industry.

Credit & Counterparty Risk

The company has a healthy PBDIT/Interest ratio of 10.44x, suggesting low immediate counterparty risk for lenders, despite the lack of information sharing with rating agencies.