💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment, Trading of Polymers, which generated revenue of INR 29,427.97 Lakhs for the six months ended September 30, 2025, representing a growth of 15.97% compared to INR 25,376.46 Lakhs in the previous corresponding period.

Geographic Revenue Split

Not explicitly disclosed in percentage terms, but the company primarily trades in Maharashtra, Gujarat, Daman, and Silvassa.

Profitability Margins

Net Profit Margin declined to 1.45% (INR 426.43 Lakhs) for H1 FY26 from 2.58% (INR 655.14 Lakhs) in H1 FY25. Profit before tax margin stood at 1.95% for H1 FY26 compared to 3.50% in the previous period.

EBITDA Margin

EBITDA margin for H1 FY26 was approximately 2.05% (calculated as PBT of INR 574.45 Lakhs plus finance costs of INR 22.15 Lakhs and depreciation of INR 7.68 Lakhs over total revenue), reflecting a decline from the prior year due to increased purchase and operating costs.

Capital Expenditure

Historical capital expenditure for H1 FY26 was minimal at INR 0.0092 Cr (INR 0.92 Lakhs), as the company follows an asset-light trading model.

Credit Rating & Borrowing

The company's short-term rating was ACUITE A4 (downgraded from A4+ in February 2021) before being withdrawn in October 2021 due to non-cooperation. Finance costs for H1 FY26 were INR 22.15 Lakhs, a 91% increase YoY from INR 11.59 Lakhs.

⚙️ Operational Drivers

Raw Materials

Polymers and plastic granules represent the primary trading stock, with purchase costs accounting for 95.7% of total revenue (INR 28,164.28 Lakhs).

Import Sources

Raw materials are sourced domestically from India and imported from Singapore.

Key Suppliers

The company is an authorized agent for LG Polymers (India) Private Limited and Borouge Pte Limited (Singapore).

Capacity Expansion

Not applicable as the company is a trading entity; however, it aims to increase volume execution through enhanced working capital.

Raw Material Costs

Purchase costs for H1 FY26 were INR 28,164.28 Lakhs, representing 97.5% of total expenses, up from INR 25,894.57 Lakhs in H1 FY25.

Manufacturing Efficiency

Not applicable for a trading business.

Logistics & Distribution

Operating costs, which include distribution and logistics, were INR 852.69 Lakhs for H1 FY26, representing 2.9% of revenue.

📈 Strategic Growth

Expected Growth Rate

16%

Growth Strategy

The company plans to achieve growth by utilizing INR 47.50 Cr (87% of net IPO proceeds) to fund working capital requirements, enabling the execution of higher trade volumes and the acquisition of new customers in the polymer segment.

Products & Services

Polymers and plastic granules.

Brand Portfolio

None owned; authorized agent for global brands LG Polymers and Borouge.

Market Expansion

Focus on tapping new customers and increasing volume execution in Western India (Maharashtra and Gujarat).

Strategic Alliances

Authorized agency agreements with LG Polymers (India) Private Limited and Borouge Pte Limited (Singapore).

🌍 External Factors

Industry Trends

The polymer trading industry is growing due to demand from packaging and manufacturing; the company is positioning itself by scaling its working capital base through a recent INR 63 Cr IPO.

Competitive Landscape

Operates in a competitive trading market with other authorized and unauthorized polymer distributors.

Competitive Moat

Moat is based on authorized agency status for global leaders LG and Borouge, which provides a reliable supply chain and brand credibility in the Western Indian market.

Macro Economic Sensitivity

Highly sensitive to industrial production growth and polymer price cycles which affect trading volumes and margins.

Geopolitical Risks

Trade barriers or supply disruptions in Singapore could impact the procurement of products from Borouge Pte Limited.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to standard trade and import regulations for chemical and polymer products.

Taxation Policy Impact

The effective tax rate for H1 FY26 was 25.7%, with a total tax expense of INR 148.01 Lakhs.

⚠️ Risk Analysis

Key Uncertainties

Fluctuations in global polymer prices and foreign exchange volatility are the primary business risks.

Geographic Concentration Risk

100% of operations are concentrated in Western India (Maharashtra, Gujarat, Daman, and Silvassa).

Third Party Dependencies

Critical dependency on LG Polymers and Borouge for product supply.

Technology Obsolescence Risk

Low risk for physical polymer trading, though digital procurement platforms could disrupt traditional agency models.

Credit & Counterparty Risk

Trade receivables were INR 5,841.32 Lakhs as of September 30, 2025, representing approximately 20% of half-yearly revenue.