💰 Financial Performance

Revenue Growth by Segment

The EPS segment grew 14.7% to INR 110.21 Cr in FY25 (from INR 96.04 Cr). Prefab Panels and work contract income grew 7.4% to INR 139.87 Cr (from INR 130.23 Cr). The Trading division (electric motors) accounts for 6% of total operating income.

Geographic Revenue Split

The company operates 8 manufacturing units across India in Chennai, Thane, Bengaluru, Karad, Hyderabad, Hapur, Kochi, and Coimbatore, providing a pan-India presence to serve regional industrial hubs.

Profitability Margins

Net Profit Margin (NPM) improved to 3.73% in FY25 from 3.36% in FY24. For Q1 FY26, the company reported a PAT of INR 2.90 Cr on revenue of INR 65.66 Cr, representing a net margin of 4.42%.

EBITDA Margin

The PBILDT (EBITDA) margin was 8.64% in FY25 (INR 23.21 Cr), a slight decrease from 8.86% in FY24 (INR 21.72 Cr) due to intensified pricing pressure from unorganized competitors.

Capital Expenditure

The company planned a capex of INR 10-15 Cr for the relocation of the Thane plant and EPS capacity enhancement, which was deferred to H2 FY26 due to lower-than-expected demand.

Credit Rating & Borrowing

CARE upgraded the long-term rating to CARE BBB; Stable (from BBB-; Positive) and short-term to CARE A3+ (from A3) in August 2025. Borrowing costs are supported by an improved interest coverage ratio of 6.02x.

⚙️ Operational Drivers

Raw Materials

Key raw materials include petroleum-based EPS resins and various chemicals used in the production of thermal insulation and packaging products.

Import Sources

Not specifically disclosed, but petroleum-linked resins are subject to global crude oil price fluctuations and international supply chain dynamics.

Key Suppliers

Not specifically disclosed; however, the company acts as a channel partner for Siemens for its electric motor trading division.

Capacity Expansion

Current installed capacity as of March 31, 2025, includes 3,720 MT of EPS, 5,76,000 sq.mt of Isobuild, and 2,89,000 sq.mt of Quikbuild. Expansion of EPS capacity is planned for H2 FY26.

Raw Material Costs

Raw material costs are highly volatile due to their petroleum-based nature. The company faces challenges passing these costs to customers because of stiff competition in the fragmented insulation industry.

Manufacturing Efficiency

Efficiency is maintained through 8 strategically located units. The company achieved a 9% growth in total operating income in FY25 despite a drop in realization.

Logistics & Distribution

The company utilizes its 8 manufacturing units to optimize distribution across major industrial regions in India.

📈 Strategic Growth

Expected Growth Rate

13%

Growth Strategy

Growth is driven by a focus on high-margin work contracts and AMC services for PSUs, capacity expansion in the EPS segment (INR 10-15 Cr capex), and leveraging long-standing relationships with clients in the pharma and engineering sectors.

Products & Services

EPS sheets, rigid polyurethane foam slabs, prefabricated panels (Isobuild and Quikbuild), composite packaging, anti-static packaging, and Siemens electric motors.

Brand Portfolio

Isobuild, Quikbuild.

New Products/Services

Increased focus on installation and maintenance services (AMC) which contributed to the resilience of the PBILDT margin in FY25.

Market Expansion

Relocation and expansion of the Thane plant planned for H2 FY26 to better serve the western region's demand.

Market Share & Ranking

Not specifically disclosed, but the company operates in a highly fragmented industry with significant competition from unorganized players.

Strategic Alliances

Channel partnership with Siemens for the distribution of electric motors in Tamil Nadu.

🌍 External Factors

Industry Trends

The industry is evolving toward integrated solutions, with Beardsell positioning itself by offering installation and maintenance services alongside product supply to capture higher value.

Competitive Landscape

Intense competition from both organized and unorganized players in the thermal insulation and prefabricated building segments.

Competitive Moat

The company's moat is built on an 80-year legacy (incorporated in 1936) and long-term relationships with PSU clients, which are sustainable but face pressure from low-cost unorganized competitors.

Macro Economic Sensitivity

Operations are cyclical and sensitive to demand from the construction, consumer durables, and pharma sectors, which are influenced by overall GDP growth and interest rate environments.

Consumer Behavior

Increased demand for cold storage and affordable housing is driving growth in the prefab panel segment (Isobuild and Quikbuild).

Geopolitical Risks

Fluctuations in global oil prices due to geopolitical tensions in the Middle East directly impact the cost of petroleum-based raw materials.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to SEBI (Prohibition of Insider Trading) Regulations and SEBI (LODR) Regulations regarding financial disclosures and trading windows.

Taxation Policy Impact

Not specifically disclosed; results are prepared in accordance with Indian Accounting Standards (Ind AS).

Legal Contingencies

The company clarified that a negative rating action by CRISIL was due to regulatory guidelines and non-cooperation rather than operational failure, as the company had switched its mandate to CARE Ratings.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices and cyclical demand from end-user industries are the primary business risks, potentially impacting margins by 2-3% annually.

Geographic Concentration Risk

The company has diversified its risk by operating 8 units across different states in India.

Third Party Dependencies

Dependency on Siemens for the trading division, which accounts for 6% of total operating income.

Technology Obsolescence Risk

The company uses prefabricated panel technology (Isobuild/Quikbuild) which is currently a growing standard in affordable housing and cold storage.

Credit & Counterparty Risk

Receivables quality is supported by a significant proportion of orders from PSU customers, though elongating receivables is noted as a potential negative rating factor.