ASPINWALL - Aspinwall & Co

📊 NSE: ASPINWALL 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 18:38

💰 Financial Performance

Revenue Growth by Segment

Total consolidated revenue for the six months ended September 30, 2025, grew 10.3% YoY to INR 173.19 Cr. Segment-wise, Logistics revenue declined 3.6% to INR 63.71 Cr, while Coffee revenue grew approximately 24% to INR 101.31 Cr. Plantation revenue saw a decline of 10.7% to INR 8.17 Cr.

Geographic Revenue Split

Operations are primarily concentrated in South India (Kerala and Karnataka) for sourcing and processing, with a significant portion of the Coffee segment (58.5% of total revenue) being exported to international markets. Specific regional percentage splits are not disclosed.

Profitability Margins

Profitability saw a sharp decline; the company reported a consolidated loss before tax of INR 6.46 Cr for H1 FY26 compared to a profit of INR 8.41 Cr in H1 FY25. The Coffee segment's results swung from a profit of INR 6.67 Cr to a loss of INR 2.10 Cr, significantly impacting overall net margins.

EBITDA Margin

The consolidated EBITDA margin collapsed from 7.84% in H1 FY25 to 0.08% in H1 FY26. This was driven by a 178.6% surge in finance costs (INR 3.90 Cr) and operational losses in the core Coffee segment.

Capital Expenditure

Historical capital expenditure for the six months ended September 30, 2025, was INR 4.41 Cr, an increase from INR 2.93 Cr in the same period the previous year, primarily directed toward property, plant, and equipment.

Credit Rating & Borrowing

The company's credit rating was downgraded to CRISIL BBB/Stable/CRISIL A3+. Borrowing costs are significant, with finance costs of INR 3.90 Cr for H1 FY26 on fund-based limits of INR 102 Cr, implying an effective annual interest rate of approximately 7.6%.

⚙️ Operational Drivers

Raw Materials

Coffee beans (representing approximately 60% of Coffee segment costs) and Rubber latex (representing approximately 45% of Plantation segment costs).

Import Sources

Raw materials are primarily sourced domestically from the states of Kerala and Karnataka, India.

Key Suppliers

Sourcing is conducted through a network of local coffee growers and small-hold rubber farmers in South India.

Capacity Expansion

Current capacity is not disclosed in MT; however, the company operates processing facilities for specialty coffee and manages rubber plantations. No major new capex plans were noted in recent credit reports.

Raw Material Costs

Raw material costs are highly volatile; coffee bean prices directly impact the 58.5% revenue share of the Coffee segment. Procurement strategies focus on established relations with growers over five decades.

Manufacturing Efficiency

Manufacturing efficiency is challenged by high working capital requirements, with Gross Current Assets (GCA) at 200 days, indicating slow inventory turnover.

Logistics & Distribution

Distribution and logistics services provided to third parties represent 36.8% of total revenue (INR 63.71 Cr), while internal logistics for coffee exports are a core operational component.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth is targeted through the expansion of specialized logistics services, such as pharma logistics via SFS Pharma Logistics Pvt Ltd, and increasing the volume of specialty coffee exports. The company leverages its 80-year heritage in shipping to maintain market share while attempting to improve the working capital cycle to fund accruals.

Products & Services

Specialty coffee exports, natural rubber, shipping and port logistics services, pharma logistics, and coir products.

Brand Portfolio

Aspinwall

New Products/Services

The company has expanded into specialized segments like pharma logistics and healthcare services through subsidiaries, though specific revenue contribution percentages for new launches are not disclosed.

Market Expansion

Market expansion focuses on deepening the specialty coffee footprint in international markets and expanding logistics service offerings in Indian ports.

Strategic Alliances

Strategic operations are conducted through wholly-owned subsidiaries: Malabar Coast Marine Services, Aspinwall Geotech, SFS Pharma Logistics, and Aspinwall Healthcare.

🌍 External Factors

Industry Trends

The industry is shifting toward specialized logistics (pharma/healthcare) and premium specialty coffee. Aspinwall is positioning itself in these niches to counter the cyclicality of standard shipping and commodity rubber.

Competitive Landscape

Competes with large-scale international logistics firms and domestic coffee exporters like Tata Coffee in the specialty segment.

Competitive Moat

The moat is based on an 80-year brand heritage and established logistics networks. This is sustainable due to high trust requirements in shipping, but vulnerable to high debt costs and commodity price swings.

Macro Economic Sensitivity

Highly sensitive to global trade GDP and commodity price cycles. A slowdown in global trade directly reduces demand for the Logistics segment (36.8% of revenue).

Consumer Behavior

Increasing global demand for ethically sourced and specialty-grade coffee supports the company's long-term export strategy.

Geopolitical Risks

Geopolitical tensions affecting shipping routes (e.g., Red Sea) pose a direct risk to the Logistics segment's operational efficiency and cost structure.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to plantation labor laws in Kerala and international maritime regulations. The company must also adhere to specialized pharma handling standards for its SFS Pharma Logistics subsidiary.

Environmental Compliance

ESG and environmental compliance costs are not specifically disclosed in INR values.

Taxation Policy Impact

The effective tax rate is influenced by reversals of prior year tax provisions amounting to INR 38 lakhs and INR 63 lakhs.

Legal Contingencies

A notice was issued by the Chokkad Grama Panchayat Office, Malappuram, Kerala, regarding operational matters. The company claims no material impact, and no specific case value in INR was disclosed.

⚠️ Risk Analysis

Key Uncertainties

Primary uncertainties include the volatility of international coffee prices and the high interest rate environment, which could impact net margins by 10-15%.