💰 Financial Performance

Revenue Growth by Segment

The company operates in two segments: Wax and Agro. Wax revenue decreased by 15.4% from INR 228.80 Cr in FY24 to INR 193.55 Cr in FY25. Agro revenue grew from zero in FY24 to INR 39.96 Cr in FY25, representing 17.1% of total revenue from operations.

Geographic Revenue Split

Not explicitly disclosed by percentage, but the company maintains operations and warehouses in Jodhpur (Rajasthan), Ahmedabad (Gujarat), Mundra (Gujarat), and Bhiwandi (Maharashtra), with a stated focus on expanding global export reach.

Profitability Margins

Operating Profit Margin declined from 2.88% to 2.53% YoY. Net Profit Margin decreased from 1.97% to 1.52% YoY. The compression is attributed to a 2.65% increase in total expenses (INR 230.37 Cr) outpacing the 2.03% growth in total revenue.

EBITDA Margin

EBITDA stood at INR 6.09 Cr in FY25, a decline of 8.14% compared to INR 6.68 Cr in FY24. This decline reflects higher operational costs associated with the launch of the new Agro processing unit.

Capital Expenditure

The company acquired 5.5118 hectares of agricultural land for agro-based production expansion and established a new Spices and Agro Processing Unit in Jodhpur. Authorized share capital was increased from INR 13 Cr to INR 25 Cr to support growth.

Credit Rating & Borrowing

Debt-Equity Ratio improved significantly from 1.00 to 0.33 YoY due to an increase in net worth from a public issue. Interest Coverage Ratio decreased from 11.48 to 6.45 times as finance costs rose 50.7% to INR 0.86 Cr.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include various types of waxes, chemicals, and agro-commodities/spices. While specific cost percentages per material are not listed, total expenses reached INR 230.37 Cr, primarily driven by procurement for the new agro-processing division.

Import Sources

Sourced from various states including Rajasthan, Gujarat, and Maharashtra. The company also notes exposure to global economic conditions, implying international sourcing for certain wax and chemical products.

Key Suppliers

Not disclosed in available documents; however, the company notes a heavy reliance on a few external suppliers without long-term agreements, creating vulnerability to supply disruptions.

Capacity Expansion

Established a new processing unit in Jodhpur for cleaning, grading, sorting, and grinding of spices. Acquired 5.5118 hectares of land to expand agro-based production capacity.

Raw Material Costs

Total expenses (largely raw material and procurement) rose to INR 230.37 Cr. The company faces risks from commodity price fluctuations which directly impact the cost of wax and agro products.

Manufacturing Efficiency

The company is transitioning toward a fully integrated agribusiness model via its new subsidiary, Dhariwal House of Spices Limited, to improve value addition and quality standards.

Logistics & Distribution

Distribution is managed through a network across Jodhpur, Ahmedabad, Bhiwandi, and Mundra to facilitate both domestic supply and international exports.

📈 Strategic Growth

Expected Growth Rate

2.03%

Growth Strategy

Growth is targeted through the incorporation of 'Dhariwal House of Spices Limited' (51% ownership) to create a fully integrated agribusiness. The strategy includes sub-dividing shares (1:5 split) to improve liquidity, expanding into organic and traceable agro-exports, and utilizing the newly acquired 5.5 hectares of land for production.

Products & Services

Waxes, chemicals, processed spices (cleaned, graded, sorted, and ground), and various agro-based products.

Brand Portfolio

Dhariwalcorp, Dhariwal House of Spices.

New Products/Services

Launched a new project for cleaning, grading, sorting, and grinding of spices and agro products in FY25, which contributed INR 39.96 Cr in its first year.

Market Expansion

Targeting the organic and traceable agricultural produce market globally, supported by government 'Make in India' initiatives and modernization of agricultural infrastructure.

Strategic Alliances

Incorporated Dhariwal House of Spices Limited as a subsidiary with 51% stake. Other promoters include Novel Growth Partners India Private Limited and several individual investors.

🌍 External Factors

Industry Trends

The spice and agro sector is seeing a shift toward organic, traceable, and high-quality produce. The company is positioning itself to benefit from government schemes aimed at modernizing agricultural processing and promoting exports.

Competitive Landscape

Faces intense competition from both domestic and global players in the chemicals, waxes, and agro-product markets, leading to pricing pressures.

Competitive Moat

Moat is built on a multi-location warehousing and processing infrastructure and a shift toward an integrated 'farm-to-export' model. Sustainability depends on maintaining quality certifications and navigating commodity cycles.

Macro Economic Sensitivity

Highly sensitive to Indian economic growth and global economic conditions, particularly in geographies catered to by the export business.

Consumer Behavior

Increasing consumer preference for certified organic and fair-trade products is driving the company's investment in quality assurance and traceable supply chains.

Geopolitical Risks

Vulnerable to international sanctions, tariffs, and trade barriers that could slow down export volumes.

⚖️ Regulatory & Governance

Industry Regulations

Subject to agricultural policies, export-import regulations, and quality standards for food processing. Changes in corporate or tax laws are cited as potential risks to prospects.

Environmental Compliance

Not specifically disclosed in INR, but the company notes risks related to non-compliance with statutory requirements and changing environmental/regulatory laws.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 28.7%, with a total tax expense of INR 1.43 Cr on a profit before tax of INR 4.98 Cr.

Legal Contingencies

The company notes risks from potential legal issues or penalties due to regulatory lapses, but no specific pending high-value court cases are detailed in the provided text.

⚠️ Risk Analysis

Key Uncertainties

Commodity price volatility and global competition are primary risks. The shift in Return on Net Worth from 51.5% to 10.27% highlights the impact of equity dilution from the public issue.

Geographic Concentration Risk

Operations are concentrated in Rajasthan and Gujarat, making the company vulnerable to regional economic or political disruptions in these states.

Third Party Dependencies

Significant dependency on external suppliers and a few major customers without long-term contractual protections.

Technology Obsolescence Risk

Risks related to the inability to adapt to new technology in processing and inventory mismanagement.

Credit & Counterparty Risk

Exposure to counterparty credit risk and unsecured loans; Debtors Turnover Ratio declined from 24.33 to 18.93 times, indicating a slight slowdown in collections.