💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for the trading segment was INR 39.42 Lakhs for H1 FY26, representing a significant decline of 73.75% compared to INR 150.16 Lakhs in H1 FY25. For the quarter ended September 30, 2025 (Q2 FY26), revenue was INR 9.30 Lakhs, down 69.12% from INR 30.12 Lakhs in Q2 FY25.

Profitability Margins

Net Profit Margin for H1 FY26 was 43.45% (INR 17.13 Lakhs profit on INR 39.42 Lakhs revenue), which is heavily supported by Other Income of INR 34.83 Lakhs. This is a shift from H1 FY25 where the net margin was 40.38% (INR 60.63 Lakhs profit on INR 150.16 Lakhs revenue).

EBITDA Margin

EBITDA for H1 FY26 was approximately INR 18.51 Lakhs, representing a 24.9% margin on total income of INR 74.25 Lakhs. This reflects a sharp contraction in core profitability compared to H1 FY25, where EBITDA was significantly higher at INR 62.76 Lakhs (28.4% of total income).

Capital Expenditure

Capital expenditure for H1 FY26 was INR 0.00, as indicated by the zero purchase of fixed assets in the cash flow statement, consistent with the company's asset-light trading model.

Credit Rating & Borrowing

The company is debt-free with total borrowings of INR 0.00 as of September 30, 2025. Consequently, borrowing costs are 0%.

⚙️ Operational Drivers

Raw Materials

The primary operational cost is 'Purchases of stock-in-trade', which represents 86.1% of revenue from operations (INR 33.96 Lakhs) in H1 FY26.

Capacity Expansion

Not applicable as the company operates primarily in trading and investments; however, the company is exploring diversification and entry into international markets.

Raw Material Costs

Purchases of stock-in-trade decreased by 66.7% YoY to INR 33.96 Lakhs in H1 FY26, down from INR 102.12 Lakhs in H1 FY25, mirroring the decline in revenue.

Manufacturing Efficiency

Not applicable for the trading segment; however, employee benefit expenses increased by 16.8% YoY to INR 7.77 Lakhs in H1 FY26 despite the revenue drop.

📈 Strategic Growth

Growth Strategy

The company aims to sustain growth momentum through the diversification of product offerings and entry into select international markets. This strategy is supported by a clear roadmap to create long-term value and leverage its leadership position in its current segment.

Products & Services

The company primarily deals in the trading of industrial goods and stock-in-trade items, alongside managing a portfolio of investments.

Brand Portfolio

Rajdarshan.

New Products/Services

The company is exploring the diversification of product offerings, though specific revenue contribution percentages for new launches are not yet disclosed.

Market Expansion

Market expansion plans include entering select international markets to reinforce its leadership position.

Market Share & Ranking

The company claims to have successfully increased its market share and reinforced its leadership position in its segment, though specific percentage rankings are not provided.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward diversification and internationalization. The company is positioning itself by exploring new avenues of growth and reinforcing its leadership in its core segment.

Competitive Landscape

The company operates in a competitive environment where it claims to have increased market share despite a contraction in its own revenue figures.

Competitive Moat

The company's moat is built on its leadership position in its segment and a robust operating model. Sustainability is driven by quality, innovation, and service excellence.

Macro Economic Sensitivity

The company is sensitive to industrial cycles and market volatility, which impacted revenue by 73.75% YoY during the period.

Geopolitical Risks

Entry into international markets may expose the company to trade barriers and geopolitical shifts, though specific impacts are not yet quantified.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by Ind AS 34 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Taxation Policy Impact

The effective tax rate for H1 FY26 was approximately 4.67% based on a current tax expense of INR 0.80 Lakhs on a profit of INR 17.13 Lakhs.

⚠️ Risk Analysis

Key Uncertainties

Key risks include high revenue volatility (73.75% YoY decline) and a heavy reliance on non-operating income and investment gains to maintain profitability.

Geographic Concentration Risk

The company is headquartered in Udaipur, Rajasthan, suggesting a potential concentration in the regional industrial market.

Third Party Dependencies

High dependency on suppliers for stock-in-trade, with purchases accounting for 86.1% of revenue.

Technology Obsolescence Risk

Low risk given the trading and investment nature of the business.

Credit & Counterparty Risk

Trade and other receivables increased by INR 4.25 Lakhs in H1 FY26, indicating a potential increase in credit exposure relative to the reduced revenue base.