Radix Industries - Radix Industries

📊 BSE: 531412 🏢 Personal Care 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The hair products segment revenue grew 46.47% YoY, reaching INR 48.34 Cr in FY25 compared to INR 33.00 Cr in FY24.

Geographic Revenue Split

100% of the company's revenue is derived from export markets, primarily overseas fashion-oriented markets.

Profitability Margins

Operating Profit Margin decreased from 10.22% to 7.84% (a 23.29% decline), and Net Profit Margin fell from 6.77% to 5.44% (a 19.59% decline) due to total expenses growing faster (48.29%) than total income (46.47%).

EBITDA Margin

Operating Profit Margin stood at 7.84% in FY25, down from 10.22% in the previous year, reflecting increased operational costs.

Capital Expenditure

Not disclosed in available documents; however, the company noted an absence of major capex plans in recent credit assessments.

Credit Rating & Borrowing

The company's ratings of [ICRA]BB (Stable) and [ICRA]A4 were withdrawn in December 2020 at the company's request. Borrowing costs are low as the company has a Debt-to-Equity ratio of 0.00.

⚙️ Operational Drivers

Raw Materials

Human hair is the primary raw material, representing a significant portion of the INR 44.67 Cr total expenses.

Import Sources

Sourced domestically in India through a well-established procurement system that ensures easy availability at low cost.

Raw Material Costs

Total expenses, including raw materials, reached INR 44.67 Cr in FY25, representing 92.4% of total revenue.

Manufacturing Efficiency

Inventory turnover ratio improved by 100% YoY to 2.10, indicating significantly better movement of stock compared to the previous year's 1.05.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

The company aims to achieve growth by capitalizing on the global shift from synthetic to human hair products due to health concerns (cancer/allergies) associated with synthetic fibers, and by leveraging its debt-free status and improved inventory cycle.

Products & Services

Human hair, wigs, hair extensions, and related hair products.

Market Expansion

The company is largely dependent on overseas markets, with a focus on regions where human hair wigs are a fashion staple.

🌍 External Factors

Industry Trends

The global hair wigs and extensions industry is seeing sustained double-digit growth, with a clear consumer preference shift toward human hair over synthetic alternatives due to health risks.

Competitive Landscape

Faces intense competition from the unorganized sector and manufacturers of synthetic hair substitutes.

Competitive Moat

The moat is built on an established low-cost procurement system for human hair in India, which is difficult for international competitors to replicate at the same cost efficiency.

Macro Economic Sensitivity

Highly sensitive to global economic conditions and consumer spending in export markets as 100% of revenue is from international sales.

Consumer Behavior

Increasing health consciousness is driving consumers away from synthetic hair, which is perceived to cause allergic reactions and cancer.

Geopolitical Risks

Vulnerable to changes in international trade regimes and government regulations in export destinations.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, SEBI (LODR) Regulations 2015, and international standards for hair product safety.

Taxation Policy Impact

The effective tax rate is approximately 25.4% based on a Profit Before Tax of INR 3.52 Cr and Profit After Tax of INR 2.63 Cr in FY25.

⚠️ Risk Analysis

Key Uncertainties

Volatility in foreign exchange rates and high customer concentration are the primary business risks, with potential margin impacts exceeding 10-15% if unhedged.