AARADHYA - Aaradhya Dis.

📊 NSE: AARADHYA 🏢 Paper & Paper Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company achieved significant growth in high-value segments: Paper Cup Blanks grew by 253.7% to INR 16.59 Cr, and Coated Paper Reel/Bobbin/Sheet grew by 85.8% to INR 30.05 Cr. Uncoated Paper Sheet/Board/Reel saw a modest growth of 3.3% to INR 45.25 Cr. New revenue streams were established in OGR Paper (INR 4.28 Cr) and Paper MTR/OTR (INR 2.85 Cr).

Geographic Revenue Split

Domestic sales remain the primary driver, while Export Sales grew by approximately 68.7% YoY, reaching approximately INR 13.53 Cr in FY 2024-25 compared to INR 8.02 Cr in FY 2023-24, driven by increased demand for Paper Cup Blanks and Barrier Coated Rolls in international markets.

Profitability Margins

Net Profit Margin improved from 6.27% in FY 2023-24 to 8.50% in FY 2024-25. This 223-basis point expansion was driven by a 108.2% increase in Net Profit to INR 9.66 Cr, outpacing the 53.6% growth in total revenue.

EBITDA Margin

Operating Profit (before other income and interest) stood at INR 2.95 Cr, representing an operating margin of 2.59%. While absolute operating profit grew 30.2% YoY from INR 2.26 Cr, the margin compressed slightly as revenue growth was heavily supported by other income or exceptional items leading to a PBT of INR 14.16 Cr.

Capital Expenditure

Not explicitly disclosed in available documents, though the company operates a state-of-the-art manufacturing facility in Dewas, Madhya Pradesh, and maintains proper records for Property, Plant, and Equipment.

Credit Rating & Borrowing

The company has sanctioned working capital limits exceeding INR 5 Cr from banks secured against current assets. Finance costs increased by 63% YoY to INR 2.93 Cr, reflecting higher debt utilization to support the 53.6% surge in operations.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Paper Board, Poly-coated Paper, and Base Paper, which are essential for manufacturing disposable packaging. These materials constitute the bulk of the cost of goods sold, though specific percentage splits are not disclosed.

Import Sources

Sourced from both domestic and international markets to ensure a steady supply of premium inputs for export-quality products.

Key Suppliers

The company sources raw materials from major industry players including ITC, Century, Nippon, and West Coast, ensuring high-quality standards for its sustainable product line.

Capacity Expansion

The company operates a manufacturing facility in Dewas, MP. While specific MTPA capacity is not disclosed, the 253.7% growth in Paper Cup Blank sales indicates a significant ramp-up in production utilization during FY 2024-25.

Raw Material Costs

Raw material price escalation is identified as a primary risk. The company manages this through strategic sourcing from reputed suppliers like ITC and Century to mitigate supply chain volatility.

Manufacturing Efficiency

Efficiency is driven by a skilled team with over a decade of industry experience and a state-of-the-art facility in Dewas, enabling the company to scale revenue by 53.6% with a constant headcount of 33 employees.

📈 Strategic Growth

Expected Growth Rate

56.73%

Growth Strategy

The company is pursuing a 'Sustainability-First' strategy, expanding its global footprint in eco-friendly packaging. Growth is driven by aggressive market share pursuit in the Paper Cup Blank segment (which grew 253.7% this year) and diversifying into new categories like OGR Paper and Paper MTR/OTR to build a robust sales pipeline.

Products & Services

Paper cup blanks, ripple blanks, poly-coated paper rolls, embossed ripple wallpaper fans, multi-colour paper fans, biodegradable coated paper, OGR paper, and PP Lids.

Brand Portfolio

Aaradhya Disposal Industries Limited.

New Products/Services

Introduced OGR Paper (contributing INR 4.28 Cr) and Paper MTR/OTR (contributing INR 2.85 Cr) in FY 2024-25, representing approximately 6.3% of total revenue.

Market Expansion

Expanding global footprint for eco-friendly disposable and packaging solutions, specifically targeting international markets for barrier-coated rolls and blanks.

🌍 External Factors

Industry Trends

The industry is shifting rapidly toward sustainable, plastic-free packaging. Aaradhya is positioned to benefit from this as a manufacturer of biodegradable coated paper, evidenced by its 56.73% revenue growth.

Competitive Landscape

The company competes in the sustainable packaging market, focusing on high-quality paper-based disposables against both traditional plastic manufacturers and other paper converters.

Competitive Moat

The company's moat is built on its 'Sustainability' focus and strategic sourcing partnerships with premium suppliers like ITC, which ensures product quality that is difficult for smaller unorganized players to replicate.

Macro Economic Sensitivity

Highly sensitive to economic downturns which could reduce consumer spending on disposable products, and sensitive to global sustainability trends.

Consumer Behavior

Increasing global awareness and demand for eco-friendly and biodegradable packaging solutions are driving the shift toward the company's product portfolio.

Geopolitical Risks

Trade barriers or changes in international environmental regulations could impact the INR 13.53 Cr export segment.

⚖️ Regulatory & Governance

Industry Regulations

Complies with Indian Accounting Standards (Ind AS) and Section 133 of the Companies Act. Managerial remuneration is capped at 11% of net profits as per Section 197.

Environmental Compliance

The company aligns with complex environmental regulations to lead in green practices and sustainability, which is core to its business model.

Taxation Policy Impact

The company is subject to Indian corporate tax laws; PBT of INR 14.16 Cr resulted in a Net Profit of INR 9.66 Cr, implying an effective tax impact of approximately 31.8%.

Legal Contingencies

The company has disclosed the impact of pending litigations on its financial position in its financial statements, though specific case values are not detailed in the summary.

⚠️ Risk Analysis

Key Uncertainties

Primary risks include raw material price escalation, currency volatility for exports, and potential economic downturns affecting demand for disposables.

Geographic Concentration Risk

Manufacturing is concentrated in Dewas, Madhya Pradesh, while revenue is diversified across domestic and international markets (INR 13.53 Cr exports).