💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations declined 20.6% YoY from INR 15,509.48 lakh in FY24 to INR 12,309.05 lakh in FY25. Q2 FY25 revenue of INR 28.61 Cr showed a 23.55% YoY decline due to sluggish demand in the marble segment, although quartz demand witnessed improvement.

Geographic Revenue Split

Not disclosed in available documents, though the company maintains a diversified customer profile across various regions.

Profitability Margins

The company shifted from a profit before tax of INR 340.24 lakh in FY24 to a loss of INR 685.17 lakh in FY25. Q2 FY25 PAT margin was -25.16% (Loss of INR 7.20 Cr on INR 28.61 Cr revenue) compared to a profit of INR 0.39 Cr in Q2 FY24.

EBITDA Margin

Q2 FY25 EBITDA margin was -7.06%, a significant decline of 2,540 bps from 18.34% in Q2 FY24. Core profitability is under pressure due to high interest costs and sluggish demand.

Capital Expenditure

No debt-funded capital expenditure is planned for the near to medium term. Scheduled repayment of term debt is the primary focus for cash flow utilization.

Credit Rating & Borrowing

The credit outlook was revised to 'Negative' from 'Stable' due to deteriorating financial risk profiles. Overall gearing improved to 0.86x as of March 31, 2025, from 1.05x in FY24 due to debt repayments.

⚙️ Operational Drivers

Raw Materials

Granite blocks, marble, and quartz. Cost of materials consumed was INR 6,188.93 lakh in FY25, representing 50.28% of total revenue.

Capacity Expansion

Not disclosed in available documents; however, the company is focusing on quartz surfaces to improve overall margins.

Raw Material Costs

Raw material costs were INR 61.89 Cr in FY25, down 25.6% YoY from INR 83.26 Cr in FY24, tracking the decline in overall revenue.

📈 Strategic Growth

Expected Growth Rate

22%

Growth Strategy

The company aims to achieve growth by focusing on quartz surfaces which command better margins. Positive rating sensitivities require increasing scale to over INR 150 Cr with EBITDA margins exceeding 13% and reducing net working capital to operating income below 90%.

Products & Services

Granite slabs, granite tiles, marble slabs, and quartz surfaces.

Brand Portfolio

Aro Granite, Aro Tile.

New Products/Services

Increased focus on Quartz surfaces to capture improving demand and higher margins compared to traditional marble.

🌍 External Factors

Industry Trends

The industry is seeing sluggish demand for marble while quartz demand is improving. The company is positioning itself to capitalize on the quartz shift to improve margins.

Competitive Moat

The company's moat is built on a long track record of operations and an experienced management team, which provides stability during industry downturns.

Macro Economic Sensitivity

Highly sensitive to interest rates; finance costs of INR 12.87 Cr in FY25 represent over 10% of total revenue, significantly impacting the bottom line.

Consumer Behavior

Consumer preference is shifting toward quartz surfaces, leading to the improvement in demand noted in Q1FY25.

⚖️ Regulatory & Governance

Industry Regulations

Maintenance of books using accounting software with an audit trail (edit log) facility became applicable from April 1, 2023.

Legal Contingencies

The company has no pending litigations as of March 31, 2025. (Value: INR 0).

⚠️ Risk Analysis

Key Uncertainties

Sustained pressure on scale of operations and profitability due to high interest rates and sluggish demand for core products like marble.

Credit & Counterparty Risk

Trade receivables stood at INR 10.01 Cr as of September 30, 2025, down from INR 14.75 Cr in March 2025, indicating active collection efforts.