💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment (Agrochemicals). Revenue from operations for the half-year ended September 30, 2025, reached INR 256.45 Cr, representing a 19.75% growth compared to INR 214.15 Cr in the same period of the previous year. Full-year revenue for FY25 was INR 318.09 Cr.

Profitability Margins

Net Profit Margin declined by 29% from 1.48% in FY24 to 1.06% in FY25. For the half-year ended September 30, 2025, the company reported a Profit Before Tax of INR 5.54 Cr, a decrease from INR 6.07 Cr in the corresponding previous half-year.

EBITDA Margin

Not explicitly disclosed, but Net Profit Margin stood at 1.06% for FY25. Operating efficiency is reflected in the Net Capital Turnover Ratio, which improved by 22% to 5.23 in FY25, indicating more efficient use of short-term assets to support sales.

Credit Rating & Borrowing

The Debt Equity Ratio improved by 6%, decreasing from 0.62 in FY24 to 0.59 in FY25 due to a reduction in total debt. Finance costs for the half-year ended September 30, 2025, were INR 1.05 Cr.

⚙️ Operational Drivers

Raw Materials

Agrochemical technicals used for manufacturing Fungicides, Herbicides, Weedicides, and Insecticides. Cost of materials consumed in FY25 was INR 295.60 Cr, representing 92.9% of total revenue.

Raw Material Costs

Raw material costs accounted for 92.9% of revenue in FY25 (INR 295.60 Cr). For the half-year ended September 30, 2025, material costs were INR 239.42 Cr, up from INR 197.02 Cr in the previous year's corresponding period, reflecting a 21.5% increase in procurement costs.

Manufacturing Efficiency

Manufacturing efficiency is indicated by the Inventory Turnover Ratio, which improved by 5% from 6.91 in FY24 to 7.27 in FY25, suggesting faster movement of agrochemical stocks.

📈 Strategic Growth

Expected Growth Rate

19.75%

Growth Strategy

Growth is pursued through a focus on human resource development (66 full-time employees) and improving HR policies to enhance organizational performance. Strategically, the company is improving its operational cycle, evidenced by a 16% improvement in the Trade Receivable Turnover Ratio (5.60 in FY25), which ensures faster cash realization to fund the production of Fungicides and Insecticides.

Products & Services

Fungicides, Herbicides, Weedicides, and Insecticides.

🌍 External Factors

Industry Trends

The agrochemical industry is evolving with shifting regulatory requirements and market needs for crop protection. Aristo is positioned as a specialized player in Fungicides and Herbicides, maintaining a focus on efficient capital use to navigate these shifts.

Competitive Moat

The company's moat is built on operational efficiency and strong internal controls. The 22% increase in the Net Capital Turnover Ratio and a 16% improvement in receivable collections suggest a sustainable advantage in managing working capital compared to peers with slower cycles.

Macro Economic Sensitivity

The company is sensitive to agricultural market dynamics and regulatory changes affecting the agrochemical sector.

Consumer Behavior

Demand is driven by agricultural cycles and the need for effective pest and weed control in farming.

⚖️ Regulatory & Governance

Industry Regulations

The company complies with the Companies Act, 2013, and is exempt from certain SEBI LODR corporate governance regulations (Regulations 17 to 27) due to its listing on the SME Exchange and having a paid-up capital below INR 10 Cr and net worth below INR 25 Cr.

Taxation Policy Impact

The company reported a deferred tax liability increase of INR 0.28 Cr for the half-year ended September 30, 2025. The effective tax rate for FY25 was approximately 25.7% based on a PBT of INR 5.47 Cr and PAT of INR 4.06 Cr.

Legal Contingencies

The company reported no long-term contracts, including derivative contracts, with material foreseeable losses. There were no amounts required to be transferred to the Investment Education and Protection Fund.

⚠️ Risk Analysis

Key Uncertainties

Key risks include the potential for material misstatement due to fraud or error, which the company mitigates through an internal financial control system that auditors have deemed adequate and effective.

Technology Obsolescence Risk

The company uses accounting software with audit trail (edit log) facilities to ensure the integrity of financial records and mitigate digital risks.

Credit & Counterparty Risk

Credit risk is managed through efficient collection processes, resulting in a 16% improvement in the Trade Receivable Turnover Ratio to 5.60 in FY25.