💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment (Kraft Paper). Revenue witnessed a 39% degrowth over two years, falling from INR 512.84 Cr in FY2022 to INR 310.79 Cr in FY2024. For the full year ended March 31, 2025, revenue plummeted to INR 95.95 Cr, a 69% YoY decline. In H1 FY2026 (ended Sept 30, 2025), revenue was just INR 1.28 Cr compared to INR 93.70 Cr in H1 FY2025, representing a 98.6% decline.

Geographic Revenue Split

Not specifically disclosed by percentage, but the company notes that local market dynamics and container non-availability for exports significantly impacted the 39% revenue decline in previous cycles.

Profitability Margins

Profitability has collapsed due to operational suspension. H1 FY2026 reported a Loss Before Tax of INR 10.01 Cr on revenue of INR 1.28 Cr. In H1 FY2025, the loss was INR 25.52 Cr. Net margins are deeply negative as fixed costs and finance charges continue despite minimal revenue.

EBITDA Margin

Operating profit before working capital changes for H1 FY2026 was a loss of INR 1.13 Cr. Core profitability is non-existent due to the suspension of core activities effective September 2024.

Capital Expenditure

Property, Plant and Equipment (PPE) stood at INR 119.26 Cr as of September 30, 2025, a decrease from INR 122.45 Cr in March 2025 due to depreciation. Capital Work-in-Progress is stagnant at INR 0.27 Cr with no new planned expenditure disclosed.

Credit Rating & Borrowing

Ratings were downgraded to 'IVR D' (Default) on November 14, 2024, for bank facilities totaling INR 127.00 Cr (INR 62.00 Cr Long Term and INR 65.00 Cr Short Term) due to delays in debt servicing and liquidity issues.

⚙️ Operational Drivers

Raw Materials

Waste paper and Kraft paper scrap (implied by industry). Volatile raw material prices are cited as a key risk factor impacting operating margins.

Capacity Expansion

Current capacity is effectively 0% utilized as core operations have been suspended since September 2024. No expansion is planned; the company is exploring strategic options for revival or asset monetization.

Raw Material Costs

Cost of materials consumed was INR 0 in H1 FY2026 due to the operational halt, compared to INR 75.71 Cr in H1 FY2025, which represented 80.8% of that period's revenue.

Manufacturing Efficiency

Manufacturing efficiency is currently nil as core activities are suspended. Previously, the group maintained an operating cycle of 58 days (as of March 2023).

Logistics & Distribution

Increased logistic costs and container non-availability were primary drivers for the initial revenue decline before the total operational halt.

📈 Strategic Growth

Expected Growth Rate

-98.60%

Growth Strategy

The company is pursuing a revival plan through strategic investor participation, asset monetization, and operational realignment. A monitoring committee is overseeing these efforts to address the threat to going concern status.

Products & Services

Kraft paper of various quality grades used for packaging.

Brand Portfolio

Astron.

New Products/Services

No new products are planned; the current focus is entirely on the revival of existing Kraft paper operations.

Market Expansion

Market expansion is currently halted; the company is focused on maintaining its 'going concern' status through strategic options.

Market Share & Ranking

The company operates in a highly fragmented industry and currently holds negligible market share due to the operational shutdown.

Strategic Alliances

The company is actively seeking strategic investors to participate in its revival plan.

🌍 External Factors

Industry Trends

The Kraft paper industry is characterized by high fragmentation and volatile input costs. The industry is currently seeing a shift where distressed players like Astron require strategic realignment to survive.

Competitive Landscape

The industry is highly fragmented with numerous small and medium-sized players, leading to intense price competition.

Competitive Moat

The primary moat is the 50-year experience of promoters Mr. Kirit Patel and Mr. Ramakant Patel in the Kraft paper industry, though this is currently offset by severe financial distress.

Macro Economic Sensitivity

Highly sensitive to logistics costs and global container availability, which previously impacted export capabilities.

Consumer Behavior

Demand for Kraft paper is linked to the packaging industry, but the company has lost customer confidence due to its inability to supply products.

Geopolitical Risks

Global supply chain disruptions and container shortages have historically impacted the business risk profile.

⚖️ Regulatory & Governance

Industry Regulations

The company is subject to pollution control norms and manufacturing standards typical for the paper and board industry.

Legal Contingencies

The company faces pending Income Tax Litigations for which legal counsel has been engaged. Auditors issued a disclaimer of opinion for FY2025 due to lack of sufficient audit evidence.

⚠️ Risk Analysis

Key Uncertainties

There is a significant threat to the 'going concern' status of the company. Liquidity is poor, and the company's accounts are classified as NPA.

Third Party Dependencies

High dependency on banks for debt restructuring and potential strategic investors for the revival plan.

Credit & Counterparty Risk

Trade receivables stood at INR 21.01 Cr as of September 30, 2025, down from INR 25.48 Cr in March 2025, indicating some recovery of old dues but overall high credit risk.