💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 10.91% YoY to INR 77.04 Cr in HYE Sep 2025. The Industrial Intermediate Goods segment grew 5.52% YoY to INR 52.77 Cr, while the Consumer Goods segment showed robust growth of 25.76% YoY, reaching INR 24.13 Cr.

Geographic Revenue Split

Not explicitly disclosed in percentage terms, but operations are concentrated in Northern and Western India with manufacturing units located in Halol, Gujarat and Bhiwadi, Rajasthan.

Profitability Margins

Net Profit Margin declined from 1.59% in HYE Sep 2024 to 1.32% in HYE Sep 2025. Profit After Tax (PAT) fell 8.06% YoY to INR 1.02 Cr despite higher revenues, primarily due to a 42.45% surge in interest expenses.

EBITDA Margin

EBITDA margin for HYE Sep 2025 stood at 6.58% (INR 5.07 Cr), an improvement from 5.77% (INR 4.01 Cr) in HYE Sep 2024, indicating better operational efficiency before accounting for rising debt costs.

Capital Expenditure

The company invested INR 2.90 Cr in fixed assets during HYE Sep 2025, following a significant capital outlay of INR 7.51 Cr in the full year ended March 2025 to expand manufacturing capabilities.

Credit Rating & Borrowing

Not disclosed in available documents; however, interest expenses rose to INR 1.86 Cr for the half-year, reflecting a high reliance on short-term borrowings which stood at INR 39.85 Cr.

⚙️ Operational Drivers

Raw Materials

Key raw materials include PVC resins, PP resins, and specialized chemicals for cable insulation, with Cost of Materials Consumed representing 72.0% of total revenue (INR 55.46 Cr).

Import Sources

Not specifically disclosed, though the company reported foreign currency expenditure of INR 16.80 Cr in FY 2023-24, suggesting significant imports of polymers or additives.

Capacity Expansion

Current capacity is distributed across four units: two in Halol, Gujarat and two in Bhiwadi, Rajasthan. Expansion is evidenced by the INR 7.51 Cr capex in FY25, aimed at increasing output for PVC/WPC boards and doors.

Raw Material Costs

Raw material costs as a percentage of revenue increased slightly to 72.0% in HYE Sep 2025 from 70.1% in HYE Sep 2024, indicating limited ability to pass on volatile polymer prices immediately.

Manufacturing Efficiency

Operating profit before working capital changes was INR 5.12 Cr for HYE Sep 2025, representing 6.6% of revenue, showing stable manufacturing conversion efficiency.

Logistics & Distribution

Not disclosed as a specific percentage, but the company manages distribution from its Bhiwadi and Halol plants to serve the telecom and construction sectors.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

Growth is driven by a strategic shift toward high-margin Consumer Goods (PVC/WPC boards and doors), which grew 25.8% YoY. The company is leveraging its four manufacturing units to scale production and utilizing registered brands like PLASTKING and SRIPLAST to capture market share in the building materials sector.

Products & Services

Manufacturing of raw materials for HT-LT Power & Telecom Cables, irrigation products, PVC/PP Sheets, Ply Boards, PVC Doors, and Frames (Chowkhat).

Brand Portfolio

PLASTKING, SRIPLAST, TREELIFE, and LITEWOOD.

New Products/Services

Expansion into WPC (Wood Polymer Composite) boards and PP shuttering sheets for the construction industry, expected to contribute significantly to the Consumer Goods segment revenue.

Market Expansion

Focusing on the irrigation and telecom infrastructure sectors in India, supported by the manufacturing presence in Gujarat and Rajasthan.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable building materials like WPC; AVSL is positioning itself by registering brands like TREELIFE and expanding its PVC/PP sheet capacity to meet this 20%+ growth trend.

Competitive Landscape

Competes with both organized and unorganized players in the PVC/WPC and cable-compounds market; competition is intense on pricing for industrial intermediates.

Competitive Moat

Moat is based on manufacturing integration for cable raw materials and established brand names in the PVC door market. Sustainability depends on maintaining cost leadership in a commodity-linked business.

Macro Economic Sensitivity

Highly sensitive to infrastructure spending in telecom and power sectors; a 1% slowdown in construction activity could impact the Consumer Goods segment revenue by 3-5%.

Consumer Behavior

Increasing preference for PVC/WPC doors over traditional wood due to durability and cost-effectiveness is driving the 25.8% growth in the consumer segment.

Geopolitical Risks

Trade barriers on polymer imports or disruptions in the Middle East could tighten raw material supply, increasing input costs for the cable-material division.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Bureau of Indian Standards (BIS) for cable raw materials and irrigation products, as well as plastic waste management rules for its PVC/PP manufacturing operations.

Environmental Compliance

The company operates in the plastic/polymer processing industry and must adhere to state pollution control board norms in Gujarat and Rajasthan; specific ESG costs are not disclosed.

Taxation Policy Impact

Effective tax rate for HYE Sep 2025 was approximately 35.3% (INR 0.55 Cr tax on INR 1.57 Cr PBT), including provisions for current and deferred tax.

Legal Contingencies

The company reported no pending applications or proceedings under the Insolvency and Bankruptcy Code (IBC) 2016 for the financial year 2023-24.

⚠️ Risk Analysis

Key Uncertainties

Volatility in polymer prices (PVC/PP) poses a risk to the 72% material cost structure; high interest costs (INR 1.86 Cr per half-year) threaten bottom-line stability.

Geographic Concentration Risk

Manufacturing is 100% concentrated in two states (Gujarat and Rajasthan), making the company vulnerable to regional regulatory changes or logistical disruptions in these areas.

Third Party Dependencies

High dependency on financial institutions for working capital, with short-term borrowings (INR 39.85 Cr) nearly equal to half-year revenue.

Technology Obsolescence Risk

Risk of shift toward new composite materials in the cable industry; company is mitigating this by diversifying into WPC and PP shuttering sheets.

Credit & Counterparty Risk

Sundry Debtors rose to INR 6.31 Cr in the half-year, indicating a potential slowdown in collections which could impact liquidity and increase interest costs further.