💰 Financial Performance

Revenue Growth by Segment

Total revenue decreased by 26.88% from INR 20.24 Cr in FY23 to INR 14.80 Cr in FY24. Segment-specific growth percentages were not disclosed in the available documents.

Geographic Revenue Split

The company operates a manufacturing unit in Ahmedabad, Gujarat, and previously operated a unit in Maharashtra. It also exports machinery, but the specific percentage contribution from each region is not disclosed.

Profitability Margins

Profitability has significantly declined; PAT margin turned negative at -6.5% in FY24 from 0.47% in FY23. Operating margin dropped from 3.10% in FY23 to 0.50% in FY24 due to the shutdown of the Maharashtra unit.

EBITDA Margin

Operating margin (proxy for EBITDA) was 0.50% in FY24, representing a significant decline from 3.10% in FY23. Core profitability was adversely affected by increased expenses related to the Maharashtra unit closure.

Capital Expenditure

The company reported an acquisition of fixed assets in its cash flow statement for the half-year ended September 30, 2025, but the specific planned capital expenditure in INR Cr was not disclosed.

Credit Rating & Borrowing

CRISIL withdrew its 'CRISIL BB-/Stable' rating in December 2024 at the company's request. Interest coverage ratio deteriorated sharply from 2.15x in FY23 to 0.22x in FY24, indicating high financial risk.

⚙️ Operational Drivers

Raw Materials

The primary raw material is polyethylene terephthalate (PET) resin, used for manufacturing preforms and bottles. Specific cost percentages for each material were not disclosed.

Capacity Expansion

Current installed capacity and specific planned expansion timelines were not disclosed in the available documents.

Raw Material Costs

Raw material costs are a significant driver, with the company noting susceptibility to price volatility. Specific YoY cost change percentages were not disclosed.

Manufacturing Efficiency

Operating margin fell to 0.50% in FY24, largely due to the operational inefficiency caused by the shutdown of the Maharashtra manufacturing unit.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company aims to achieve growth by focusing on high-quality PET packaging products, expanding its export front for machinery (sugar confectionery and plastic processing), and leveraging the 30+ years of industry experience of its promoters.

Products & Services

PET preforms, PET bottles (for water, soft drinks, edible oils, ketchup, milk, fruit juices), sugar confectionery machinery, plastic processing machinery, and injection moulds.

Brand Portfolio

Ahimsa

Market Expansion

The company is optimistic about the recovery of the Indian economy and capital markets as drivers for future growth, though specific target regions and timelines were not disclosed.

Strategic Alliances

The company reported having no subsidiary, associate, or joint venture companies as of September 30, 2025.

🌍 External Factors

Industry Trends

The PET packaging industry is growing alongside the Indian economy. The company is positioning itself by focusing on core PET business and machinery exports to capitalize on this momentum.

Competitive Landscape

The landscape is characterized by intense domestic competition and demand fluctuations, which have pressured the company's margins and revenue.

Competitive Moat

The company's moat is based on the extensive 30-year industry experience of its promoters, Mr. Ashutosh Gandhi and Mrs. Sneha Gandhi, which provides deep operational knowledge in the packaging sector.

Macro Economic Sensitivity

The company is highly sensitive to Indian GDP growth and capital market development, which it views as the backbone of economic growth for its industry.

Consumer Behavior

Demand is driven by consumer consumption of bottled water, soft drinks, and edible oils, which require PET packaging.

Geopolitical Risks

The company notes that the country must grow economically to withstand international pressures from foreign countries, which could impact trade.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. As an SME-listed entity, certain corporate governance regulations like 27(2) are not applicable.

Taxation Policy Impact

The company recognized deferred tax assets of INR 0.36 Cr as of September 30, 2025.

Legal Contingencies

The secretarial audit for FY25 did not report any major pending court cases or specific case values in INR.

⚠️ Risk Analysis

Key Uncertainties

Key risks include raw material price volatility and the ability to maintain margins amidst intense competition. The net loss of INR 0.92 Cr in FY24 highlights these uncertainties.

Geographic Concentration Risk

Manufacturing is concentrated in Ahmedabad, Gujarat, following the shutdown of the Maharashtra unit.

Technology Obsolescence Risk

The company has implemented audit trail features in its accounting software to ensure data integrity and mitigate digital risks.

Credit & Counterparty Risk

Receivables of INR 5.27 Cr against total assets of INR 8.58 Cr indicate significant credit exposure and potential risks to liquidity if collections are delayed.