AHLADA - Ahlada Engineers
Financial Performance
Revenue Growth by Segment
The company operates in a single segment, steel products. Net revenues for FY25 were INR 131.99 Cr, representing a significant decrease of 49.14% YoY from INR 259.51 Cr. For H1 FY26, revenue was INR 50.99 Cr, down 24.5% from INR 67.57 Cr in H1 FY25.
Geographic Revenue Split
Not disclosed in available documents, though recent contracts indicate significant operations in Andhra Pradesh (Simhadripuram) and a registered office in Hyderabad, Telangana.
Profitability Margins
Net profit for FY25 was INR 3.70 Cr, a 72.85% decrease from INR 13.64 Cr in FY24. The net profit margin for FY25 was approximately 2.8%, down from 5.2% in the previous year. Profit before tax for H1 FY26 was INR 1.57 Cr.
EBITDA Margin
Operating profit (before depreciation and interest) for FY25 was INR 5.79 Cr, a decrease of 71.10% from INR 20.05 Cr in FY24. This resulted in an EBITDA margin of 4.39% for FY25, compared to 7.73% in FY24.
Credit Rating & Borrowing
Total current borrowings as of September 30, 2025, were INR 36.18 Cr, up from INR 34.39 Cr in March 2025. Non-current borrowings stood at INR 1.09 Cr. Finance costs for FY25 were INR 4.92 Cr.
Operational Drivers
Raw Materials
Steel is the primary raw material for the company's steel doors and windows. Raw material price volatility is cited as a major operational challenge impacting margins.
Capacity Expansion
The company has an installed capacity of 30,000 doors per month. Capacities for windows and clean room equipment are inter-operable and not conclusively determined.
Raw Material Costs
Cost of materials consumed in H1 FY26 was INR 32.16 Cr, representing 63.07% of total revenue. In FY25, material costs were INR 63.42 Cr (48.05% of revenue).
Manufacturing Efficiency
The company focuses on resource utilization and waste minimization through technical team interventions and adopting industry best practices to optimize production and reduce costs over time.
Strategic Growth
Expected Growth Rate
Not disclosed
Growth Strategy
Ahlada plans to achieve growth by collaborating with state governments and private institutions across India to supply furniture and steel products. A recent example is the Letter of Award received on October 28, 2025, for supplying furniture to ZP High School in Simhadripuram, Andhra Pradesh.
Products & Services
Steel doors, steel windows, clean room equipment, and furniture.
Brand Portfolio
Ahlada.
New Products/Services
The company is expanding its furniture line, recently securing a contract for school furniture in Andhra Pradesh.
Market Expansion
Plans involve broadening the network by targeting other state governments and reputable private institutions across India beyond its current base.
External Factors
Industry Trends
The engineering industry is facing challenges from supply chain disruptions and raw material volatility. Ahlada is positioning itself for the future by upgrading technology and focusing on operational excellence to mitigate these conditions.
Competitive Landscape
Intensified competition from both domestic and international players is impacting market share and exerting downward pressure on pricing.
Competitive Moat
Ahlada's moat is built on nearly two decades of experience in steel door manufacturing and an installed capacity of 30,000 doors per month. Sustainability is maintained through in-house expertise and customer-centric solutions in healthcare and real estate verticals.
Macro Economic Sensitivity
Highly sensitive to government policies and raw material price volatility, which contributed to a 71.10% drop in operating profit in FY25.
Regulatory & Governance
Industry Regulations
Operations are impacted by government policies and statutory guidelines. The Audit Committee monitors compliance with internal policies and statutory requirements.
Taxation Policy Impact
Current tax liabilities were INR 3.00 Cr as of September 30, 2025.
Legal Contingencies
The Audit Committee is tasked with looking into reasons for substantial defaults in payments to depositors, debenture holders, and creditors, though specific case values are not disclosed.
Risk Analysis
Key Uncertainties
Raw material price volatility and government policy changes are primary risks, having already caused a 49.14% revenue decline in FY25.
Geographic Concentration Risk
Significant reliance on contracts from the Andhra Pradesh government (e.g., Samagra Shiksha).
Third Party Dependencies
Dependency on steel suppliers and supply chain logistics, as disruptions in these areas were cited as a cause for poor performance.
Technology Obsolescence Risk
The company prioritizes continuous innovation and technological upgrades to prevent obsolescence and maintain market leadership.
Credit & Counterparty Risk
Trade receivables decreased by INR 3.93 Cr in H1 FY26, indicating active management of credit exposure.