💰 Financial Performance

Revenue Growth by Segment

The company operates in a single reportable segment: Advertising. Net Profit before tax for the half year ended September 30, 2025, was INR 4.67 Cr, compared to INR 10.17 Cr for the full year ended March 31, 2025.

Geographic Revenue Split

Not disclosed in available documents; however, the company is headquartered in New Delhi and operates across various domestic markets.

Profitability Margins

Return on Net Worth was 5.99% for the financial year ended March 31, 2025. Standalone Return on Capital Employed was reported at a low 0.09% during the same period.

EBITDA Margin

Not explicitly disclosed; however, Net Profit before tax for H1 FY26 was INR 4.67 Cr, representing a significant portion of the previous full year's INR 10.17 Cr profit.

Capital Expenditure

The company allocated INR 15.29 Cr from IPO proceeds for infrastructure and technology. As of September 30, 2025, INR 12.96 Cr (84.7%) of this allocation was utilized during the half-year period.

Credit Rating & Borrowing

The company maintains a low debt profile with a Total Debt/Equity ratio of 0.05. The Interest Coverage Ratio is strong at 9.18 as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Primary operational inputs include media inventory (advertising space for OOH, print, and digital) and materials for event management/activations.

Capacity Expansion

Expansion is focused on scaling the Out-of-Home (OOH) business through technology and infrastructure, supported by a INR 2.50 Cr investment in subsidiary All White Communication LLP.

Raw Material Costs

Not disclosed as a specific percentage of revenue; however, media inventory procurement is the primary cost of services.

Manufacturing Efficiency

Not applicable for a service-based advertising agency.

📈 Strategic Growth

Growth Strategy

Growth is driven by elevating the OOH business through technology investments, expanding digital advertising automation, and utilizing IPO proceeds for infrastructure expansion (INR 12.96 Cr utilized in H1 FY26).

Products & Services

Outdoor advertising (hoardings, billboards, kiosks), print media, ground events/activations, and digital marketing solutions.

Brand Portfolio

The Crayons Network.

New Products/Services

Expansion into 'cutting-edge technology' for advertising and software development as part of the IPO objects.

Market Expansion

Targeting scale in the OOH segment through subsidiary investments and infrastructure upgrades.

Strategic Alliances

Investment in All White Communication LLP (subsidiary) to scale OOH business operations.

🌍 External Factors

Industry Trends

The industry is shifting toward digital advertising and automation. Future growth depends on the widespread adoption of these digital solutions and automated tools.

Competitive Landscape

The company faces competition from traditional and digital-first agencies; competitive position is tied to tech adoption.

Competitive Moat

Moat is based on an integrated service model (Strategy, Creative, Digital, Media, Event, OOH) and a robust internal control framework, providing a one-stop solution for clients.

Macro Economic Sensitivity

Highly sensitive to corporate spending cycles and general economic health, which dictate advertising budget allocations.

Consumer Behavior

Shift toward consumer-populated areas for OOH and increased consumption of digital media affecting client demand.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to local municipal regulations for OOH site placements and SEBI Listing Obligations for financial reporting.

Taxation Policy Impact

The company follows standard corporate tax norms; CSR profit requirements under section 135(5) were noted as not applicable for the period.

Legal Contingencies

A Secretarial Audit for FY 2024-25 was conducted to ensure compliance with the Companies Act and applicable statutory provisions; no specific pending case values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Primary risks include economic downturns reducing corporate ad spend and the potential failure of digital advertising automation to achieve market adoption.

Geographic Concentration Risk

Operations are primarily centered in India, with the corporate office in New Delhi.

Third Party Dependencies

Dependency on media inventory providers and technology vendors for digital tool development.

Technology Obsolescence Risk

High risk if the company fails to keep pace with digital advertising automation and infrastructure shifts.

Credit & Counterparty Risk

Receivables and advances are monitored through internal controls; short-term loans and advances reached INR 65.99 Cr in H1 FY26.