BALAJEE - Shree TirupatiBa

📊 NSE: BALAJEE 🏢 Packaging 📅 Last Updated: 12/14/2025 13:17

💰 Financial Performance

Revenue Growth by Segment

The company operates as a single operating segment in bulk packaging. Consolidated revenue grew 13.8% YoY to INR 541.49 Cr in FY24. Standalone revenue for FY25 was INR 358.30 Cr, a marginal decline of 0.15% from INR 358.85 Cr in FY24.

Geographic Revenue Split

The company serves global markets with expanding demand in Latin and Central America, Eastern Europe, and Africa. Specific percentage split by region is not disclosed in available documents.

Profitability Margins

Consolidated PAT margin improved from 4.33% in FY23 to 6.53% in FY24. Standalone PAT margin for FY25 was 4.14% (INR 14.83 Cr PAT on INR 358.30 Cr revenue), down from 4.80% in FY24.

EBITDA Margin

Consolidated EBITDA margin was 11.77% in FY24, up from 10.17% in FY23. Core profitability is driven by operational linkages across its three subsidiaries.

Capital Expenditure

The company raised INR 122.42 Cr through an Initial Public Offer (IPO) in FY25, primarily utilized for the repayment of existing loans and strengthening the capital structure rather than direct greenfield CapEx.

Credit Rating & Borrowing

As of November 18, 2025, the credit rating is IVR A- with a Negative Outlook, revised from Stable. Borrowing costs are reflected in an interest coverage ratio of 2.42x (Standalone FY25) and 3.08x (Consolidated FY24).

⚙️ Operational Drivers

Raw Materials

Polypropylene (PP) granules and HDPE are the primary raw materials, representing a significant portion of the cost of materials consumed (INR 23,283.47 Lakhs standalone in FY25).

Import Sources

Not specifically disclosed, though the company identifies alternative and sustainable sources as part of its mitigation strategy.

Capacity Expansion

Current consolidated capacity is 28,000 metric tonnes per annum (MTPA) of FIBC bags. Specific expansion timelines are not detailed in the provided text.

Raw Material Costs

Raw material costs represent approximately 65% of standalone revenue in FY25. The company uses long-term contracts and price escalation clauses in customer contracts to manage price volatility.

Manufacturing Efficiency

The company focuses on pharmaceutical and food-grade packaging to improve value-add. Efficiency is supported by strong operational linkages between the parent and its three subsidiaries.

📈 Strategic Growth

Growth Strategy

Growth will be achieved by expanding into high-margin pharmaceutical and food-grade FIBC packaging and increasing market penetration in emerging regions such as Africa and Eastern Europe. The company is also utilizing IPO proceeds to reduce debt, which lowered the Debt-Equity ratio by 61.40% to 0.44, providing a stronger balance sheet for future expansion.

Products & Services

HDPE/PP woven sacks, FIBC (Flexible Intermediate Bulk Containers) jumbo bags, BOPP woven bags, and Tarpaulin.

Brand Portfolio

Shree Tirupati Balajee.

New Products/Services

Focusing on specialized food-grade and pharmaceutical-grade FIBCs to capture higher-margin market segments.

Market Expansion

Targeting Latin and Central America, Eastern Europe, and parts of Africa for consistent global growth.

Strategic Alliances

The group operates through the parent and three subsidiaries: Shree Tirupati Balajee FIBC Limited, Jagannath Plastics Private Limited, and Honourable Packaging Private Limited.

🌍 External Factors

Industry Trends

The global FIBC industry is seeing a shift toward specialized pharmaceutical and food-grade packaging, which requires higher certification standards and offers better margins.

Competitive Landscape

The company competes in the bulk packaging industry, specifically in the FIBC and woven sacks segment, against both domestic and international manufacturers.

Competitive Moat

The moat is built on integrated manufacturing capabilities across four entities and a common management team, providing operational resilience and cash flow fungibility.

Macro Economic Sensitivity

Sensitive to global trade volumes and economic conditions in export markets like Europe and Africa.

Consumer Behavior

Increasing preference for bulk packaging solutions (FIBCs) in the pharmaceutical and food industries due to efficiency and safety.

Geopolitical Risks

Trade barriers or political instability in Latin America or Eastern Europe could disrupt the export-heavy business model.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to pollution norms and stringent quality standards for food-grade and pharmaceutical packaging.

Environmental Compliance

The company identifies environmental and sustainability pressures as a key risk and is identifying sustainable raw material sources.

Taxation Policy Impact

Standalone current tax for FY25 was INR 600.37 Lakhs on a Profit Before Tax of INR 2,204.12 Lakhs, representing an effective tax rate of approximately 27.2%.

Legal Contingencies

The company has disclosed the impact of pending litigations in Note 32 of its standalone financial statements for FY25. Specific case values are not provided in the summary.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the revision of the credit rating outlook to Negative in November 2025, which may impact future funding and stakeholder confidence.