💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment (Furniture). Revenue from operations for FY 2025 was INR 78.32 Cr, representing a 16.12% decline from INR 93.37 Cr in FY 2024. However, H1 FY 2026 revenue grew 22.7% YoY to INR 42.67 Cr from INR 34.77 Cr.

Geographic Revenue Split

The company maintains a pan-India presence and is actively increasing its geographical expansion through new dealers and distributors. Specific regional percentage splits are not disclosed in available documents.

Profitability Margins

Net Profit Margin for FY 2025 was 3.88%, a 10.19% decrease from 4.32% in FY 2024. Operating Profit Margin stood at 10.97% in FY 2025, down 5.92% from 11.66% in the previous year. The decline is attributed to lower net sales and shifts in operational costs.

EBITDA Margin

EBITDA for FY 2025 was INR 9.65 Cr (12.32% margin), a slight decline of 1.43% from INR 9.79 Cr in FY 2024. Core profitability remains stable despite the revenue drop due to cost management.

Capital Expenditure

During H1 FY 2026, the company invested INR 4.34 Cr in Property, Plant, and Equipment (including CWIP and Capital Advances) to support capacity and infrastructure.

Credit Rating & Borrowing

Finance costs for FY 2025 were INR 1.60 Cr. For H1 FY 2026, finance costs were INR 0.78 Cr, a 10.8% increase from INR 0.72 Cr YoY. Specific credit ratings and interest rate percentages are not disclosed.

⚙️ Operational Drivers

Raw Materials

Regenerated polymers and used plastics represent the primary raw materials, with cost of materials consumed totaling INR 27.79 Cr in H1 FY 2026, accounting for 65.1% of total revenue.

Import Sources

The company relies on imported machinery and moulds, primarily impacting capital expenditure and operational efficiency. Specific sourcing countries for polymers are not disclosed.

Capacity Expansion

The company is expanding its distribution network and has incorporated a new subsidiary, AVRO Recycling Limited, on May 14, 2025, to enhance its circular economy capabilities. Specific MTPA capacity figures are not disclosed.

Raw Material Costs

Raw material costs (cost of materials consumed) were INR 27.79 Cr for H1 FY 2026, up 20.8% from INR 23.01 Cr in H1 FY 2025. The company uses a strategy of regenerated polymers to mitigate cost volatility.

Manufacturing Efficiency

The company utilizes a circular economy model where discarded plastics are collected and turned into furniture, improving resource efficiency and sustainability.

Logistics & Distribution

The company is enhancing its distribution network by adding dealers and distributors to strengthen its pan-India presence. Specific logistics costs are not disclosed.

📈 Strategic Growth

Expected Growth Rate

22.70%

Growth Strategy

Growth will be achieved through the expansion of the dealer/distributor network across India and the operationalization of the new subsidiary, AVRO Recycling Limited. The company is focusing on high-quality, affordable products and sustainability initiatives (recycling) to capture market share in the organized furniture sector.

Products & Services

Moulded plastic furniture, including chairs and tables, made from regenerated polymers.

Brand Portfolio

AVRO Furniture

New Products/Services

The company is focusing on products created from regenerated polymers through its new recycling subsidiary, though specific revenue contribution percentages for new launches are not yet disclosed.

Market Expansion

Targeting pan-India expansion by increasing the density of the distribution network and geographical footprint.

Strategic Alliances

Incorporated a wholly-owned subsidiary, AVRO Recycling Limited, on May 14, 2025.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainability and circular economy models. AVRO is positioning itself by reusing manufacturing waste and using regenerated polymers to align with environmental regulations and consumer preferences.

Competitive Landscape

The company competes in the moulded plastic furniture market, focusing on affordability and sustainability to differentiate from unorganized players.

Competitive Moat

The company's moat is built on its recycling-led manufacturing process and a strong distribution network. Sustainability initiatives provide a cost advantage and brand differentiation in the affordable furniture segment.

Macro Economic Sensitivity

Sensitive to general economic conditions and consumer demand shifts for home/office furniture.

Consumer Behavior

Increasing consumer preference for sustainable and affordable furniture products is driving demand for AVRO's recycled polymer range.

Geopolitical Risks

Exchange rate volatility between the US Dollar and Indian Rupee is cited as a potential risk to financial status.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to environmental regulations regarding plastic waste management and manufacturing standards for consumer goods.

Environmental Compliance

The company is heavily invested in ESG through its recycling subsidiary and zero-waste manufacturing process. Specific compliance costs in INR are not disclosed.

Taxation Policy Impact

Current tax liabilities (net) were INR 0.38 Cr as of September 30, 2025. Deferred tax assets stood at INR 0.20 Cr.

⚠️ Risk Analysis

Key Uncertainties

Key risks include raw material price volatility and foreign exchange fluctuations, which could impact margins by an estimated 5-10% based on historical margin variances.

Geographic Concentration Risk

While expanding pan-India, the company's primary operations and manufacturing are based in Ghaziabad, Uttar Pradesh.

Third Party Dependencies

Dependency on a network of dealers and distributors for revenue generation and market penetration.

Technology Obsolescence Risk

The company uses specialized moulds and machinery; failure to upgrade to more efficient recycling technology could impact competitive positioning.

Credit & Counterparty Risk

Trade receivables as of September 30, 2025, were INR 11.58 Cr. The company noted a significant increase in average trade receivables in FY 2025 compared to a decrease in credit sales, indicating potential pressure on receivables quality.