💰 Financial Performance

Revenue Growth by Segment

Total revenue for H1 FY26 grew 7.08% YoY to INR 32.08 Cr. The Manufacturing segment grew 39.05% YoY to INR 27.93 Cr, while the Trading segment declined 57.95% YoY to INR 4.15 Cr.

Geographic Revenue Split

Not disclosed in available documents; the company is headquartered in New Delhi.

Profitability Margins

Net Profit Ratio for FY25 was 2.22%, down from 2.45% in FY24. For H1 FY26, the net profit was INR 0.49 Cr on revenue of INR 32.08 Cr, representing a net margin of 1.53%, a decline from 2.85% in H1 FY25.

EBITDA Margin

Core segment results before tax and depreciation for H1 FY26 showed a loss of INR 0.17 Cr in Trading and a profit of INR 0.05 Cr in Manufacturing, indicating a significant margin squeeze compared to H1 FY25 profits of INR 0.51 Cr and INR 1.24 Cr respectively.

Capital Expenditure

Capital expenditure for H1 FY26 was INR 0.73 Cr spent on Property, Plant and Equipment, compared to INR 3.62 Cr in FY25.

Credit Rating & Borrowing

Not disclosed in available documents; however, the Debt-Equity ratio increased 23.34% YoY to 1.10 in FY25, and finance costs for H1 FY26 were INR 0.89 Cr.

⚙️ Operational Drivers

Raw Materials

Not disclosed in available documents; company operates in Trading and Manufacturing segments.

Manufacturing Efficiency

Return on Capital Employed (ROCE) decreased from 12.42% in FY24 to 8.97% in FY25, indicating reduced capital efficiency.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is shifting its focus from Trading to Manufacturing. Manufacturing revenue grew 39.05% YoY in H1 FY26 and now accounts for 87% of total revenue, up from 67% in H1 FY25. This strategy aims to capture higher value-add through internal production.

Products & Services

Products and services within the Trading and Manufacturing segments (specific product names not disclosed).

🌍 External Factors

Industry Trends

The company is transitioning toward a manufacturing-led model, with manufacturing revenue increasing from INR 20.09 Cr to INR 27.93 Cr YoY in H1 FY26, while trading revenue fell by over 50%.

Competitive Moat

The transition to manufacturing (87% of revenue) provides more control over the supply chain, though the moat is currently weak as evidenced by a decline in ROCE from 12.42% to 8.97%.

⚖️ Regulatory & Governance

Taxation Policy Impact

The effective tax rate for H1 FY26 was approximately 19.25% based on tax expenses of INR 11.79 Lakhs on profit before tax of INR 61.26 Lakhs.

Legal Contingencies

The company has disclosed pending litigations as of March 31, 2025, in Note 37 of its financial statements (specific case values not provided in snippets).

⚠️ Risk Analysis

Key Uncertainties

Working capital strain is a key risk, as the Net Capital Turnover ratio decreased 48.52% YoY to 4.85 in FY25 due to increased working capital requirements.

Credit & Counterparty Risk

Trade Receivables Turnover Ratio was 7.11 in FY25, a slight decrease of 2.54% from 7.29 in FY24, indicating stable but slightly slowing collections.