💰 Financial Performance

Revenue Growth by Segment

Standalone revenue grew 15.83% YoY to INR 43.68 Cr in FY25 from INR 37.71 Cr in FY24. In H1 FY26, the company achieved INR 32 Cr in revenue, with a significant 50% contribution from trading activities, indicating a shift in the business mix toward third-party product sales.

Geographic Revenue Split

Domestic sales accounted for 95% of revenue in H1 FY25, up from 92% in FY24. Exports decreased from 8% in FY24 to 5% in H1 FY25, reflecting a strategic focus on the Indian modular furniture market.

Profitability Margins

Net Profit increased 40.46% YoY to INR 4.82 Cr in FY25 from INR 3.43 Cr in FY24. However, PAT margin moderated to 8.93% in H1 FY26 compared to 9.09% in FY24, showing slight pressure on net earnings.

EBITDA Margin

EBITDA margin improved to 19.25% in FY25 from 15.32% in FY24 (up 393 bps). However, it fell to 14.56% in H1 FY26 due to intense price competition from both organized and unorganized players.

Capital Expenditure

The company invested INR 6 Cr in FY24 and INR 3 Cr in FY25 to enhance production capacity by 2 Tons Per Day (TPD) to reduce import dependency and increase in-house manufacturing efficiency.

Credit Rating & Borrowing

CRISIL reaffirmed its 'BB+/Stable' rating in December 2025. Interest coverage was healthy at 14.65 times in FY25, though it slightly moderated to 11.98 times in H1 FY26 due to higher interest costs.

⚙️ Operational Drivers

Raw Materials

Stainless steel (scrap and flats), mild steel, MDF/plywood, and aluminum handles/profiles are the primary raw materials, representing the bulk of manufacturing expenses which totaled INR 32.00 Cr in FY24.

Import Sources

Sourced from the open market and imports of specialty hardware components. Manufacturing is concentrated in Rajkot, Gujarat, to leverage local industrial infrastructure.

Capacity Expansion

Kitchen Storage capacity is 650 Tons (75% utilized in H1 FY25). Aluminum Handle capacity is 75 Tons (80% utilized). Planned expansion aims to add 2 TPD capacity to support export growth.

Raw Material Costs

Profitability is highly susceptible to volatility in steel and aluminum prices. Operating margins are sensitive to these fluctuations as the company operates in a competitive 'open market' scenario where price pass-through can be delayed.

Manufacturing Efficiency

Capacity utilization for kitchen storage increased from 74% in FY22 to 85% in FY24, before settling at 75% (annualized) in H1 FY25 as new capacity was integrated.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

Achieving 12%+ CAGR through contract manufacturing for OEMs, increasing own-brand sales under 'Spitze by Everyday', and expanding the dealer network beyond 300. The INR 9 Cr total capex in FY24-25 aims to maximize in-house production and reduce lower-margin trading.

Products & Services

Kitchen storage accessories (baskets, cabinets, drawers), furniture hardware, wardrobe systems, modular fittings, and aluminum handles/profiles.

Brand Portfolio

Everyday, Spitze by Everyday.

New Products/Services

Focus on premium wardrobe systems and modular fittings to increase average realization per customer and improve overall PAT margins.

Market Expansion

Expanding presence across India via 300+ dealers and targeting export markets in Asia, Europe, and North America which currently contribute 5% of revenue.

🌍 External Factors

Industry Trends

The modular furniture industry is growing at a healthy rate but remains highly fragmented. There is a clear shift toward organized retail and branded interior solutions, which MIPL is positioning for with its 'Spitze' brand.

Competitive Landscape

Faces intense price competition from organized national brands and local unorganized manufacturers in the kitchen and furniture hardware segment.

Competitive Moat

The moat is built on the promoters' 20+ years of experience and established relationships with 300+ dealers. This provides a stable distribution channel that acts as a barrier to entry for new regional competitors.

Macro Economic Sensitivity

Highly sensitive to the Indian real estate and home improvement cycles. A slowdown in residential construction would directly reduce demand for modular kitchen and wardrobe fittings.

Consumer Behavior

Increasing consumer preference for modular, aesthetically pleasing, and space-efficient home interiors is driving demand for specialty hardware.

Geopolitical Risks

Trade barriers or supply chain disruptions affecting the import of specialty hardware components from international markets.

⚖️ Regulatory & Governance

Industry Regulations

Manufacturing standards and pollution norms for the Rajkot facility, along with labor laws and industrial safety regulations in Gujarat.

Taxation Policy Impact

Effective tax rate is approximately 26% based on FY24 figures (INR 1.21 Cr tax on INR 4.64 Cr PBT).

Legal Contingencies

No specific pending court cases with INR values were disclosed in the secretarial audit or financial reports provided.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (steel/aluminum) and the ability to maintain margins amidst high competition, with a potential impact of 2-4% on EBITDA.

Geographic Concentration Risk

95% of revenue is derived from the domestic Indian market, with manufacturing concentrated in a single facility in Rajkot, Gujarat.

Third Party Dependencies

50% of H1 FY26 revenue is from trading, indicating a high dependency on third-party manufacturers for half of the company's top line.

Technology Obsolescence Risk

Risk that current manufacturing processes for kitchen accessories could become obsolete, requiring significant capital for automation or new materials to stay competitive.

Credit & Counterparty Risk

Working capital is stretched due to credit extended to a large network of 300+ dealers, reflected in a current ratio of 1.97 and debtors turnover of 4.75.