💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment of manufacturing and trading copper products, which generated INR 1,382.43 Cr in FY25, representing a growth of 25.65% compared to INR 1,100.22 Cr in FY24. This growth is driven by strategic market positioning and increased operational scale following the SME-IPO.

Geographic Revenue Split

The company identifies 'Limited Regional Reach' as a primary risk, suggesting high concentration in Western India, specifically Gujarat where its 18,000 MTPA manufacturing unit is located in Dehgam.

Profitability Margins

Gross profit stood at INR 14.92 Cr in FY25 compared to INR 9.65 Cr in FY24. The Net Profit Ratio improved from 0.65% to 0.79% YoY, reflecting better operational efficiency despite high raw material costs.

EBITDA Margin

Operating margins are constrained by low value addition and high raw material costs, which account for 96-97% of production expenses. Credit rating sensitivity indicates an upward factor if operating margins increase to 2.5%.

Capital Expenditure

The company utilized INR 3.13 Cr from IPO proceeds for capital expenditure in FY25. No major debt-funded capex is planned for the medium term as the company focuses on steady accretion to reserves.

Credit Rating & Borrowing

The company maintains a 'Crisil BBB-/Stable/Crisil A3' rating. Interest coverage ratio is healthy at 8.88 times in FY25, up from 5.20 times in FY24, due to reduced interest expenses following the repayment of unsecured loans.

⚙️ Operational Drivers

Raw Materials

Copper scrap, copper cathode, and various metallic substances. Raw material costs are the dominant expense, representing 96-97% of the total production cost in FY25.

Import Sources

While specific countries are not named, the company reported a Foreign Exchange Outgo of INR 263.69 Cr in FY25, up 42.58% from INR 184.95 Cr in FY24, indicating significant import of raw materials.

Key Suppliers

Not specifically named in the documents, but the company notes a high 'Dependency on Suppliers' as a key business risk that could affect production continuity.

Capacity Expansion

Current installed capacity is 18,000 MTPA at the Dehgam, Gujarat unit. No specific future capacity expansion figures were disclosed beyond the INR 3.13 Cr IPO-funded capex already executed.

Raw Material Costs

Raw material costs represent 96-97% of production costs. Operating profitability is highly vulnerable to volatility in global copper prices because the company has limited ability to pass on sudden price spikes in a competitive market.

Manufacturing Efficiency

The company focuses on recycling copper scrap, which is a cost-effective manufacturing route compared to primary smelting, though it results in low value-addition margins.

Logistics & Distribution

Not disclosed as a specific percentage of revenue, but 'Limited Regional Reach' is cited as a constraint, implying that logistics costs likely prevent competitive expansion into distant domestic markets.

📈 Strategic Growth

Expected Growth Rate

13%

Growth Strategy

Growth will be achieved through the 18,000 MTPA capacity utilization, leveraging the 15+ years of promoter experience to deepen client relationships, and utilizing the strengthened net worth of INR 70.68 Cr from the 2025 IPO to support larger trading and manufacturing volumes.

Products & Services

Copper wire and copper wire rods manufactured primarily through the recycling of copper scrap and other metallic substances.

Brand Portfolio

Parmeshwar Metal Limited (PML).

New Products/Services

Not disclosed in available documents; the company remains focused on its core copper wire and rod recycling business.

Market Expansion

The company aims to mitigate its 'Limited Regional Reach' by leveraging its BSE SME listing to increase brand visibility and potentially expand its marketing network beyond Gujarat.

Market Share & Ranking

Not disclosed; however, the company faces intense competition from large-scale copper players which limits its pricing power.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable manufacturing and recycling. The IMF projects India's nominal growth at 10.2% through FY30, and the PLI scheme for renewable energy is expected to boost copper demand for solar and wind equipment.

Competitive Landscape

Intense competition from both large organized players and small unorganized recyclers in the copper industry, which constrains the company's ability to control market prices.

Competitive Moat

The moat is based on the promoters' 15-year industry experience and the company's established recycling infrastructure in Gujarat. However, this moat is narrow due to low product differentiation and low entry barriers in the copper recycling trade.

Macro Economic Sensitivity

Highly sensitive to the metallurgical industry trends and the National Mineral Policy. Growth is linked to infrastructure and automotive sectors which drive copper demand.

Consumer Behavior

Increased demand for copper in 'green' technologies (EVs, Renewables) is a positive shift affecting long-term demand for the company's wire products.

Geopolitical Risks

Global recessionary trends and uncertainties affect the availability and cost of imported copper scrap, which is the primary feedstock.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Central Goods and Service Tax Act, 2017 and the Gujarat Goods and Service Tax Act, 2017. The company must also comply with the National Mineral Policy and environmental norms for recycling units.

Environmental Compliance

The company assesses environment and climate change impacts on a continuous basis as part of its operating strategy, focusing on sustainable growth through metal recycling.

Taxation Policy Impact

The company is subject to standard corporate tax rates. Average net profit for CSR calculation was INR 10.44 Cr.

Legal Contingencies

The company received an order from the GST Authority, Gujarat on January 03, 2026, confirming a tax demand of INR 1.56 Cr along with interest and penalties of INR 3.62 Cr, totaling a potential liability of INR 5.18 Cr.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (97% of costs) and the outcome of the INR 5.18 Cr GST demand are the primary uncertainties that could impact cash flows by more than 40% of annual accruals.

Geographic Concentration Risk

High concentration in Gujarat; the single manufacturing unit in Dehgam makes the company vulnerable to regional economic or regulatory shifts in that state.

Third Party Dependencies

High dependency on external suppliers for copper scrap; any disruption in the scrap supply chain would immediately impact the 18,000 MTPA production capacity.

Technology Obsolescence Risk

Low risk of immediate obsolescence in copper wire products, but the company notes the need to monitor emerging technologies like AI and Gen AI in manufacturing to maintain efficiency.

Credit & Counterparty Risk

Trade Receivables Turnover Ratio was 51.68 in FY25, showing stable collection cycles. Bank limit utilization was moderate at 54% through March 2025, providing a liquidity cushion.