💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew by 53.4% YoY from INR 151.85 Cr in FY22 to INR 232.97 Cr in FY23. However, standalone revenue for FY25 showed a significant decline of 32.5%, falling to INR 164.97 Cr from INR 244.26 Cr in FY24, primarily due to cyclicality in end-user industries like power and steel.

Geographic Revenue Split

Not disclosed in available documents. The company operates manufacturing units in West Bengal and serves domestic industries including power, iron, steel, and cement.

Profitability Margins

Net Profit Margin (NPM) improved from 1.51% in FY22 to 2.58% in FY23. On a standalone basis, the Net Profit Ratio declined from 3% in FY24 to 2% in FY25, reflecting a 33.3% decrease in margin efficiency due to lower revenue absorption of fixed costs.

EBITDA Margin

Consolidated EBITDA margin improved from 4.34% in FY22 to 5.47% in FY23, a growth of 113 basis points. Standalone EBITDA for FY25 was INR 8.04 Cr, a 26% decrease from INR 10.87 Cr in FY24, as the company faced pricing pressure from raw material volatility.

Capital Expenditure

The company reported fixed assets of INR 9.10 Cr and Capital Work-in-Progress (CWIP) of INR 2.75 Cr in FY23. Total non-current assets increased by 33.4% YoY to INR 12.42 Cr, indicating ongoing investment in manufacturing infrastructure for Electrostatic Precipitators.

Credit Rating & Borrowing

Crisil reaffirmed a 'BBB-/Stable' rating in April 2025. However, Infomerics downgraded the long-term rating to 'IVR BB-/Negative' and CARE assigned 'CARE BB-; Stable' in late 2025, both under 'Issuer Not Cooperating' categories due to lack of information. Total debt increased by 52.4% from INR 29.42 Cr in FY24 to INR 44.83 Cr in FY25.

⚙️ Operational Drivers

Raw Materials

Steel is the primary raw material, representing the bulk of the Raw Material Cost (RMC) which was INR 211.94 Cr (91% of total income) in FY23.

Import Sources

Not disclosed in available documents; however, the company is noted for importing components for Electrostatic Precipitators (ESP) and exporting battery industry parts.

Capacity Expansion

Current installed capacity is 17,500 M.T. as of FY23. The company operates 24/7 to meet demand for air pollution control equipment.

Raw Material Costs

Raw Material Costs (RMC) stood at INR 211.94 Cr in FY23, a 52.5% increase from INR 138.93 Cr in FY22. The commodity nature of steel exerts pricing pressure, leading to margin volatility of approximately 4-4.5% on a consolidated level.

Manufacturing Efficiency

Capacity utilization is supported by 24/7 operations. Inventory turnover ratio improved significantly by 65.5%, from 5.72 in FY24 to 9.47 in FY25, indicating faster movement of stock.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is driven by increasing environmental regulations requiring thermal plants to install or upgrade Electrostatic Precipitators (ESP). The strategy involves leveraging 30+ years of promoter experience, maintaining long-term relationships (5+ years) with top clients, and providing customized fabrication solutions.

Products & Services

Internal parts of Electrostatic Precipitators (ESP), full ESP units, air pollution control equipment, and fabrication services for the battery industry.

Brand Portfolio

Auro Impex, Auro Industries.

New Products/Services

The company expanded from manufacturing internal ESP parts (2011) to full Electrostatic Precipitators (2017).

Market Expansion

The company is focusing on the power sector, which currently originates a significant portion of its revenue, and is expanding its presence in the iron, steel, and cement industries.

Strategic Alliances

The company operates as the 'Auro Group' by combining business profiles with Auro Industries Limited under common management.

🌍 External Factors

Industry Trends

The industry is shifting toward stricter emission norms for thermal power plants, which is growing the market for ESP technology. The company is positioned as a technology provider for air pollution reduction.

Competitive Landscape

The company competes with other fabrication and air pollution control equipment manufacturers serving OEMs in the power and steel sectors.

Competitive Moat

The moat is built on 30+ years of industry presence and deep technical expertise in ESP manufacturing. Sustainability is supported by long-term client relationships (5+ years) and the high cost/technical barrier for customers to switch pollution control vendors.

Macro Economic Sensitivity

High sensitivity to industrial CAPEX cycles in India. A slowdown in infrastructure or power sector spending directly reduces demand for air pollution control equipment.

Consumer Behavior

Not applicable as the company is a B2B industrial manufacturer.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and SEBI (LODR) Regulations. As an SME-listed entity, certain corporate governance reports (Regulation 27(2)) are not applicable.

Environmental Compliance

The company's core business is providing environmental compliance solutions (ESPs) to other industries to meet government pollution norms.

Taxation Policy Impact

The company provided for INR 2.28 Cr in taxes in FY23 on a PBT of INR 8.28 Cr, representing an effective tax rate of approximately 27.5%.

Legal Contingencies

The company received a cautionary email from the National Stock Exchange (NSE) in October 2025 for a delay in submitting proceedings of an Extraordinary General Meeting (EGM) beyond the 12-hour limit prescribed by SEBI. The company attributed this to technical issues on the NEAPS portal.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'Issuer Not Cooperating' status from multiple credit agencies, which could impact the company's ability to secure future financing or result in higher borrowing costs.

Geographic Concentration Risk

Manufacturing is concentrated in West Bengal, making the company sensitive to regional labor or regulatory changes in that state.

Third Party Dependencies

High dependency on steel suppliers; volatility in steel prices can squeeze EBITDA margins, which are already relatively thin at 4-5.5%.

Technology Obsolescence Risk

Risk of newer air filtration technologies (like fabric filters) replacing ESPs in certain industrial applications.

Credit & Counterparty Risk

Trade receivables stood at INR 14.95 Cr in FY23. The trade receivable turnover ratio improved from 7.46 in FY24 to 17.00 in FY25, suggesting improved collection efficiency.