💰 Financial Performance

Revenue Growth by Segment

Scientific - Laboratory Glass & equipment and Process System segment revenue for H1 FY26 was INR 134.06 Cr, a decrease of 5.37% YoY from INR 141.66 Cr. Glassware segment revenue for H1 FY26 was INR 66.15 Cr, an increase of 3.65% YoY from INR 63.82 Cr. Standalone turnover for FY25 was INR 392.49 Cr, up 10.11% YoY from INR 356.46 Cr.

Geographic Revenue Split

Domestic sales contribute approximately 85% of total revenue, while export markets account for approximately 15% of total revenue, providing a natural hedge against foreign exchange fluctuations.

Profitability Margins

EBITDA margin for FY25 was 16.8%, improving from 15.9% in FY24. Consolidated Profit Before Tax for H1 FY26 was INR 1.05 Cr, significantly impacted by an exceptional labor settlement cost of INR 6.61 Cr, compared to INR 19.43 Cr in H1 FY25. Return on Net Worth improved from 6.48% to 6.71% in FY25.

EBITDA Margin

EBITDA margin stood at 16.8% in FY25, a 90 basis point improvement over FY24's 15.9%, driven by operational efficiencies and improved inventory turnover.

Capital Expenditure

The company has planned a capital expenditure of approximately INR 40 Cr for FY26, which is expected to be entirely funded through internal accruals and available liquid surplus. Fixed assets as of March 31, 2025, were INR 97.77 Cr.

Credit Rating & Borrowing

The company maintains a strong credit rating with low leverage. Interest coverage ratio improved by 115.87% to 63.16x in FY25 due to decreased finance costs. Average utilization of fund-based working capital limits was modest at approximately 23% for the 12 months ended August 2025.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include glass tubing and various chemicals for scientific glass production. Cost of materials consumed for H1 FY26 (Consolidated) was INR 72.78 Cr, representing 35.8% of total revenue.

Import Sources

Not explicitly disclosed, but the company's 15% export revenue and exposure to foreign exchange fluctuations imply significant international sourcing or global pricing sensitivity.

Capacity Expansion

Planned expansion is supported by an INR 40 Cr capex budget for FY26 to meet growing demand in pharmaceutical and medical research segments. Current fixed assets are valued at INR 97.77 Cr.

Raw Material Costs

Raw material costs (Cost of Materials Consumed) were INR 143.54 Cr for FY25, representing 32.7% of consolidated revenue. Profitability remains vulnerable to raw-material price volatility.

Manufacturing Efficiency

Inventory turnover ratio improved by 16.13% to 4.45x in FY25 from 3.83x in FY24, indicating enhanced manufacturing and supply chain efficiency.

📈 Strategic Growth

Expected Growth Rate

10.10%

Growth Strategy

Growth will be achieved through the launch of new products under the 'LabQuest' brand for lab instrumentation, leveraging deep expertise in pharmaceutical packaging, and expanding presence in export markets which currently contribute 15% of revenue.

Products & Services

Laboratory glassware, lab instrumentation (LabQuest), process systems, and pharmaceutical packaging solutions.

Brand Portfolio

Borosil, LabQuest.

New Products/Services

New product launches in the LabQuest lab instrumentation line are expected to be a primary driver for future revenue growth.

Market Expansion

The company is targeting geographic expansion through its export network, which currently serves diverse scientific needs globally.

🌍 External Factors

Industry Trends

The industry is seeing growth in pharmaceutical and medical research segments. Regulatory frameworks are frequently revised, requiring constant operational adjustments and proactive compliance planning.

Competitive Landscape

The company competes in a global market serving diverse scientific needs across industries, requiring constant innovation in lab instrumentation.

Competitive Moat

Moat is built on the strong 'Borosil' brand legacy, specialized expertise in pharmaceutical-grade glass, and a robust global distribution network. These are sustainable due to high switching costs in regulated pharma environments.

Macro Economic Sensitivity

Sensitive to GDP trends, geopolitical events, and domestic regulations which impact demand and compliance burdens.

Consumer Behavior

Demand is driven by the increasing research and development needs of the pharmaceutical and medical sectors.

Geopolitical Risks

Geopolitical instability or adverse policy changes may impact demand, costs, and stock valuation.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to evolving regulatory frameworks and manufacturing standards for pharmaceutical packaging and laboratory equipment.

Taxation Policy Impact

Current tax liabilities stood at INR 0.86 Cr as of September 30, 2025.

Legal Contingencies

The company recorded an exceptional expenditure of INR 6.61 Cr in H1 FY26 related to a settlement with workers represented by a trade union under the Trade Union's Act, 1926.

⚠️ Risk Analysis

Key Uncertainties

Key risks include raw material price volatility (35.8% of revenue) and foreign exchange fluctuations (15% of revenue) without a formal hedging policy.

Geographic Concentration Risk

85% of revenue is concentrated in the domestic Indian market.

Technology Obsolescence Risk

The lab instrumentation segment (LabQuest) faces risks of technology obsolescence, requiring continuous R&D and new product launches.

Credit & Counterparty Risk

Debtors turnover was 6.75x in FY25. The company reversed a provision for doubtful advances of INR 0.05 Cr in H1 FY26, indicating stable receivables quality.