💰 Financial Performance

Revenue Growth by Segment

Continuing operations income declined 85.09% from INR 91.23 Cr in FY24 to INR 13.60 Cr in FY25. Discontinued operations (Textiles) saw a near-total revenue collapse of 99.81% in H1 FY26, falling to INR 0.24 Cr from INR 124.72 Cr in H1 FY25. The Investment Division's reported profit fell 62.63% from INR 10.41 Cr to INR 3.89 Cr in FY25.

Geographic Revenue Split

Not disclosed in available documents, though operations are primarily centered in Ahmedabad, Gujarat.

Profitability Margins

The company swung to a total loss of INR 18.88 Cr in FY25 from a profit of INR 96.41 Cr in FY24. Net profitability was heavily impacted by a lower deferred tax asset recognition of INR 14.86 Cr in FY25 compared to INR 35.00 Cr in FY24.

EBITDA Margin

PBDIT from continuing operations fell 90.22% from INR 73.53 Cr in FY24 to INR 7.19 Cr in FY25. This sharp decline reflects the volatility of the investment segment and lower real estate revenue recognition.

Capital Expenditure

Capital expenditure on Property, Plant, and Equipment was INR 0.87 Cr for H1 FY26, a 27.5% decrease from INR 1.20 Cr in H1 FY25.

Credit Rating & Borrowing

Interest expenses for H1 FY26 were INR 3.85 Cr, down 4.47% from INR 4.03 Cr in H1 FY25. Specific credit ratings and interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Specific raw materials for real estate (e.g., steel, cement) are utilized but not individually quantified as a percentage of cost. The investment division's primary 'raw material' is equity capital.

Capacity Expansion

The company has pivoted away from manufacturing, discontinuing its textile operations (revenue down to INR 0.24 Cr in H1 FY26). Expansion is now focused on the Investment Management & Advisory segment via the subsidiary ACML, which obtained a SEBI PMS license in February 2025.

Manufacturing Efficiency

Not applicable as the company has discontinued its primary manufacturing (textile) operations.

📈 Strategic Growth

Expected Growth Rate

15-27%

Growth Strategy

Growth is targeted through the new 'Investment Management & Advisory Services' segment following ACML's PMS licensing. The company leverages a value investment philosophy that has historically delivered a 27% XIRR since inception, significantly outperforming benchmark indices of 11-13%. Real estate growth depends on the timely handover of units and new project launches.

Products & Services

Residential and commercial real estate units, equity investment management, and Portfolio Management Services (PMS).

Brand Portfolio

Ashima, Ashima Capital Management Limited (ACML).

New Products/Services

Launch of Portfolio Management Services (PMS) through ACML is expected to contribute to the new Investment Management & Advisory Services segment.

Market Expansion

Expansion into third-party investment advisory and management services following the receipt of the SEBI PMS license in February 2025.

🌍 External Factors

Industry Trends

The company is transitioning from a manufacturing-heavy model (Textiles) to a financial services and real estate model. This aligns with the broader trend of Indian corporates seeking asset-light, high-ROE service businesses like PMS.

Competitive Landscape

Competes with other real estate developers in the Ahmedabad region and various PMS/Asset Management companies nationally.

Competitive Moat

The company's moat is its proprietary investment track record (27% XIRR), which provides a competitive advantage in attracting PMS clients. This is sustainable as long as the core investment team, led by Mr. Krishnachintan Parikh, remains in place.

Macro Economic Sensitivity

The company is highly sensitive to domestic interest rates and stock market cycles, which affect both real estate demand and investment portfolio valuations.

Consumer Behavior

Demand for real estate is driven by local economic conditions in Ahmedabad and the availability of housing finance.

Geopolitical Risks

Global demand and supply conditions are cited as factors influencing operations, though the company is now primarily domestic-focused.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by SEBI (Portfolio Managers) Regulations for the ACML subsidiary and RERA/Ind AS 115 for the real estate division. Compliance with Section 135 (CSR) was not applicable in FY25 as the company did not meet the net worth or profit thresholds.

Taxation Policy Impact

The company recognized a deferred tax asset of INR 14.86 Cr in FY25, which significantly cushioned the reported net loss.

Legal Contingencies

The company notes that litigation and industrial relations are risk factors that could influence operations, but specific pending case values were not disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the volatility of the equity markets, which caused a 62.6% drop in investment division profits in FY25. Real estate revenue is also uncertain due to the 'point in time' recognition model.

Geographic Concentration Risk

High geographic concentration in Ahmedabad, Gujarat, for real estate operations.

Third Party Dependencies

Dependency on SEBI for maintaining the PMS license and on market intermediaries for investment execution.

Technology Obsolescence Risk

Not a major risk for the current business model, though digital transformation in PMS client reporting is ongoing.

Credit & Counterparty Risk

Trade receivables for the standalone entity were INR 1.72 Cr as of September 2025, a significant reduction from INR 3.85 Cr in March 2025, indicating improved collection or lower sales volume.