💰 Financial Performance

Revenue Growth by Segment

Total Operating Income grew by 23.09% YoY, reaching INR 111.41 Cr in FY25 compared to INR 90.51 Cr in FY24. The company has maintained a 3-year CAGR of approximately 32% as of March 31, 2025, driven by increased volume sales and demand from OEM partners.

Geographic Revenue Split

The company is primarily focused on the Indian market with significant operations in West Bengal (Kolkata) and Assam, evidenced by approvals from West Bengal PWD and Assam BTC. Specific percentage splits per region are not disclosed in available documents.

Profitability Margins

Profitability showed a downward trend due to cost pressures; PAT margin declined from 4.30% in FY24 to 3.11% in FY25. Net profit (PAT) decreased by 11.51% YoY to INR 3.46 Cr from INR 3.91 Cr.

EBITDA Margin

EBITDA margin moderated to 11.55% in FY25 from 13.21% in FY24, a decrease of 166 basis points. While absolute EBITDA grew 7.5% to INR 12.86 Cr, margins were squeezed by rising production costs that could not be fully passed to consumers.

Capital Expenditure

The company initiated a new pro-audio division for manufacturing audio systems and international brand distribution. Specific INR Cr values for planned CapEx are not disclosed in available documents.

Credit Rating & Borrowing

Assigned a long-term rating of IVR BB+/Stable and a short-term rating of IVR A4+ by Infomerics in August 2025. Interest coverage ratio moderated to 1.72x in FY25 from 1.86x in FY24 due to higher interest expenses on a total debt of INR 63.72 Cr.

⚙️ Operational Drivers

Raw Materials

Key raw materials include LED chips and flexible boards. The specific percentage of total cost for each material is not disclosed in available documents.

Capacity Expansion

Current capacity is not specified in units; however, the company is expanding its manufacturing footprint through its new pro-audio division and maintains an ISO 9001:2015 certified facility in Salt Lake, Kolkata.

Raw Material Costs

Raw material costs increased in FY25, contributing to a margin compression of 1.66% at the EBITDA level. The company faces high raw material price fluctuation risk due to a lack of full backward integration.

Manufacturing Efficiency

The company operates as an OEM for major brands, indicating high quality standards; however, specific capacity utilization percentages are not disclosed.

Logistics & Distribution

The company utilizes a distribution network for its own 'Rashmi' brand and acts as a distributor for international professional audio brands. Specific distribution costs as a percentage of revenue are not disclosed.

📈 Strategic Growth

Expected Growth Rate

32%

Growth Strategy

Growth is targeted through the expansion of the pro-audio division, manufacturing proprietary audio systems, and securing distributorships for international brands. The company also leverages its 30-year track record to expand its OEM business with major players like Panasonic and HPL.

Products & Services

Electronic chokes, Light Ballasts, CFLs, Tube lights, LED Lamps, LED Home Decorative Lights, pro-audio systems, and rental income from property.

Brand Portfolio

Rashmi Lighting, Rashmi HLED.

New Products/Services

Initiated a pro-audio division manufacturing its own audio systems; expected revenue contribution is not specified but it represents a key diversification strategy.

Market Expansion

Expanding into the professional audio market and strengthening presence in government sector contracts in West Bengal and Assam.

Strategic Alliances

Maintains OEM partnerships with Panasonic, Khaitan, HPL, and Pritam Electricals. It also holds distributorships for international professional audio brands.

🌍 External Factors

Industry Trends

The lighting industry is characterized by a shift toward LED and decorative lighting with a current growth trend of ~23% YoY for the company. The industry is evolving toward integrated smart lighting and professional audio-visual solutions.

Competitive Landscape

Faces intense competition from both organized and unorganized players in the LED lighting and electric accessories market.

Competitive Moat

The company's moat is built on a 30-year proven track record and established OEM relationships with Tier-1 brands like Panasonic. This provides a steady offtake and lower default risk compared to new entrants.

Macro Economic Sensitivity

Highly sensitive to cyclicality in the user industry (real estate and infrastructure) and fluctuations in raw material prices.

Consumer Behavior

Increasing demand for energy-efficient LED home decorative lights and professional audio systems for commercial use.

⚖️ Regulatory & Governance

Industry Regulations

Complies with Section 177 of the Companies Act, 2013 and Regulation 18 of SEBI (LODR) for audit committee oversight. Operations are subject to PWD and government department standards for electrical equipment.

Environmental Compliance

The company follows a policy for environmentally clean and safe operations and is ISO 9001:2015 certified. Specific ESG costs are not disclosed.

Legal Contingencies

No pending applications under the Insolvency and Bankruptcy Code (IBC) 2016. Zero investor complaints were pending as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the high working capital cycle (87% limit utilization) and the risk of raw material price spikes reducing PAT further from the current 3.11%.

Geographic Concentration Risk

High concentration in Eastern India, specifically West Bengal and Assam.

Third Party Dependencies

Significant dependency on OEM partners like Panasonic and HPL for revenue stability.

Technology Obsolescence Risk

The lighting industry faces rapid technological shifts; the company mitigates this by diversifying into pro-audio and maintaining updated LED manufacturing capabilities.

Credit & Counterparty Risk

Receivables are stretched due to procedural delays from Government departments, impacting the liquidity buffer.