💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, 'Wood Based Products', which saw revenue of INR 2,421.31 Lakhs in H1 FY26, representing an 8.46% YoY decline from INR 2,645.16 Lakhs in H1 FY25.

Profitability Margins

Gross margin for H1 FY26 was 26.9% (INR 651.33 Lakhs). Net margin declined from 0.17% in H1 FY25 to -0.01% in H1 FY26, resulting in a net loss of INR 0.28 Lakhs.

EBITDA Margin

EBITDA margin for H1 FY26 was 7.29% (INR 176.53 Lakhs), a contraction from 7.96% (INR 210.52 Lakhs) in H1 FY25, driven by lower revenue and high fixed costs.

Capital Expenditure

Investment in fixed assets for H1 FY26 was INR 7.55 Lakhs, a 65% reduction compared to INR 21.57 Lakhs in H1 FY25.

⚙️ Operational Drivers

Raw Materials

Wood-based raw materials and stock-in-trade items, which combined cost INR 1,769.98 Lakhs in H1 FY26, representing 73.1% of total revenue.

Raw Material Costs

Raw material consumption and stock-in-trade purchases totaled INR 1,769.98 Lakhs in H1 FY26, accounting for 73.1% of revenue, up from 73.5% in H1 FY25.

Manufacturing Efficiency

Depreciation and amortization expense was INR 80.23 Lakhs in H1 FY26, down 12.1% from INR 91.28 Lakhs in H1 FY25.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company focuses on its core 'Wood Based Products' segment and is optimizing its balance sheet by reducing current borrowings to INR 1,720.36 Lakhs from INR 1,933.84 Lakhs in March 2025.

Products & Services

Wood Based Products including plywood, decorative veneers, and related timber products.

Brand Portfolio

Archidply Décor.

🌍 External Factors

Industry Trends

The wood-based products industry is currently facing a slowdown, as evidenced by ADL's 8.46% YoY revenue decline in H1 FY26.

Competitive Moat

ADL's moat is based on its specialized focus on 'Wood Based Products', but sustainability is challenged by high material costs and thin net margins.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to wood-based product standards and environmental norms, though specific pollution or pricing controls are not detailed beyond IND AS compliance.

Taxation Policy Impact

The company recorded a deferred tax expense of INR 2.15 Lakhs for H1 FY26, with no current tax liability, reflecting lower taxable profits.

⚠️ Risk Analysis

Key Uncertainties

Liquidity risk is high due to current borrowings of INR 1,720.36 Lakhs and inventory of INR 2,753.71 Lakhs, which together exceed total H1 revenue.

Credit & Counterparty Risk

Trade receivables of INR 1,701.35 Lakhs represent 70.3% of H1 FY26 revenue, indicating a high reliance on credit sales and potential counterparty risk.