Bengal & Assam - Bengal & Assam

📊 BSE: 533095 🏢 Non Banking Financial Company (NBFC) 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations decreased by 83.5% from INR 12,917.16 Cr in FY24 to INR 2,127.90 Cr in FY25, primarily due to the deconsolidation of a subsidiary. Dividend income, the core revenue for the holding company, grew 5.87% from INR 102.74 Cr to INR 108.78 Cr. Interest income saw a slight decline of 4.08% from INR 6.08 Cr to INR 5.83 Cr.

Geographic Revenue Split

The company operates primarily in India; however, it has international exposure through subsidiaries. One foreign subsidiary reported total revenue of INR 172.23 Cr and net cash flows of INR 4.19 Cr for FY25. Foreign currency translation reserves showed a negative movement of INR 50.24 Cr as of March 31, 2024.

Profitability Margins

Net profit after tax for the consolidated entity was impacted by a significant reduction in total income from INR 12,993.73 Cr to INR 2,226.77 Cr. Standalone PAT for FY24 was INR 115.75 Cr with a Return on Total Assets (ROTA) of 9.67%, down from 10.33% in FY23.

EBITDA Margin

Consolidated EBITDA is not directly comparable YoY due to the structural change in the group; however, total expenses for FY25 stood at INR 1,839.04 Cr against total income of INR 2,226.77 Cr, representing a core operating surplus of approximately 17.4% at the consolidated level.

Capital Expenditure

Property, Plant and Equipment (PPE) decreased from INR 425.92 Cr in FY24 to INR 409.62 Cr in FY25. Investment property was valued at INR 22.51 Cr. The company maintains a massive investment portfolio valued at INR 9,869.32 Cr as of March 31, 2025.

Credit Rating & Borrowing

The company held a CARE AA-; Stable issuer rating as of June 2024, reflecting strong financial flexibility. However, the rating was withdrawn in September 2025 at the company's request. Finance costs significantly decreased from INR 364.44 Cr in FY24 to INR 43.86 Cr in FY25 following the deconsolidation.

⚙️ Operational Drivers

Raw Materials

As an investment holding company, BACL's direct raw material costs are minimal; however, its consolidated entities consumed materials worth INR 851.06 Cr in FY25 (down from INR 7,070.71 Cr in FY24). Key materials for underlying businesses include rubber (tyres), limestone (cement), and wood pulp (paper).

Import Sources

Not specifically disclosed in the provided financial statements, though the group has a subsidiary in Mexico and global operations in the tyre and paper segments.

Capacity Expansion

The company is undergoing a major structural expansion through the amalgamation of subsidiaries PPL and UDL into BACL to streamline the holding structure. Current consolidated PPE stands at INR 409.62 Cr.

Raw Material Costs

Raw material costs represent 38.2% of total consolidated revenue in FY25. The 88% YoY decrease in absolute material costs (from INR 7,070.71 Cr to INR 851.06 Cr) is attributed to the change in the scope of consolidation.

Manufacturing Efficiency

Consolidated employee benefit expenses were INR 289.42 Cr in FY25, down from INR 1,279.01 Cr in FY24, reflecting the leaner consolidated structure post-reorganization.

📈 Strategic Growth

Expected Growth Rate

9.67%

Growth Strategy

Growth is driven by the performance of JK Group companies (JK Tyre, JK Lakshmi Cement, JK Paper). The strategy involves the amalgamation of Southern Puplings (PPL) and Umang Dairies (UDL) into BACL to consolidate assets and improve financial flexibility. The company relies on the 128x debt coverage ratio to fund strategic acquisitions for the promoter group.

Products & Services

Investment holding and financial services as a Core Investment Company (CIC-ND-SI). Underlying group products include tyres, cement, paper, and dairy products.

Brand Portfolio

JK Tyre, JK Lakshmi Cement, JK Paper, Fenner India, Umang Dairies.

Market Expansion

The company is consolidating its domestic holding structure through NCLT-approved schemes of arrangement to simplify the JK Group's ownership hierarchy.

Market Share & Ranking

The company is the primary investment vehicle for the reputed JK Group (Singhania wing).

Strategic Alliances

The group operates through multiple subsidiaries, associates, and joint ventures, including four major subsidiaries and six step-down subsidiaries with total assets of INR 2,497.86 Cr.

🌍 External Factors

Industry Trends

The industry is shifting toward consolidated holding structures to improve capital allocation. As a CIC-ND-SI, BACL is subject to tightening RBI regulations regarding capital adequacy and leverage for systemic investment companies.

Competitive Landscape

Competes with other large Indian conglomerate holding companies for capital and investment opportunities.

Competitive Moat

The moat is built on the 128x market value-to-debt coverage and strategic control over legacy brands like JK Tyre and JK Lakshmi Cement. This provides a durable financial buffer that is difficult for competitors to replicate.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth and infrastructure spending, which directly drives demand for the cement and tyre businesses of its investee companies.

Consumer Behavior

Shifts toward premium tyres and eco-friendly cement are affecting the demand profiles of the underlying investee companies.

Geopolitical Risks

Exposure to global trade through its Mexico-based subsidiary and international tyre exports.

⚖️ Regulatory & Governance

Industry Regulations

Regulated as a Core Investment Company (CIC-ND-SI) by the Reserve Bank of India, requiring adherence to strict adjusted net worth and leverage ratios.

Taxation Policy Impact

The effective tax rate is influenced by deferred tax liabilities of INR 293.60 Cr and current tax liabilities of INR 0.92 Cr. Income tax relating to OCI items was INR 3.31 Cr in FY25.

Legal Contingencies

The company has disclosed pending litigations in Note 35 of its financial statements. It has made provisions for material foreseeable losses on long-term contracts as required by law.

⚠️ Risk Analysis

Key Uncertainties

The primary risk is the high dependence on the cyclical performance of group companies (90% of income). A 10% drop in dividend payouts from subsidiaries would reduce BACL's standalone operating income by approximately INR 14 Cr.