DIVYADHAN - Divyadhan Recy.
Financial Performance
Revenue Growth by Segment
Revenue from operations grew 5.97% YoY, increasing from INR 5,612.99 Lakh in FY24 to INR 5,948.23 Lakh in FY25. Segment-specific growth was not disclosed.
Profitability Margins
Net Profit Margin declined from 5.46% in FY24 to 2.58% in FY25. This compression was driven by a 7.4% increase in material costs and a 125% increase in depreciation expenses.
EBITDA Margin
EBITDA margin decreased from 9.87% in FY24 to 6.29% in FY25. Core profitability was impacted by rising raw material consumption costs which reached 91.5% of operational revenue.
Capital Expenditure
Historical capital expenditure for FY25 was INR 8.87 Cr, as Property, Plant and Equipment increased from INR 12.30 Cr to INR 21.17 Cr (a 72% increase).
Credit Rating & Borrowing
Finance costs were INR 29.63 Lakh in FY25, a reduction of 54% from INR 64.61 Lakh in FY24, suggesting lower debt levels or improved borrowing terms.
Operational Drivers
Raw Materials
Recycling feedstock (implied by industry) represents 91.5% of total revenue from operations, totaling INR 54.45 Cr in FY25.
Raw Material Costs
Raw material costs were INR 54.45 Cr in FY25, representing 91.5% of revenue. Costs grew 7.4% YoY from INR 50.68 Cr in FY24.
Strategic Growth
Growth Strategy
The company is utilizing INR 17.04 Cr from IPO proceeds specifically for working capital requirements to scale operations. As of September 30, 2025, 100% of the working capital funding from the IPO has been utilized to support business growth.
Products & Services
Recycled materials and recycling industry services.
External Factors
Industry Trends
The recycling industry is evolving with a focus on sustainability and environmental standards. The company is positioning itself by strengthening its board with operational excellence and industry insights.
Competitive Moat
The company's moat is linked to its operational efficiency and compliance with environmental standards, though specific durable advantages like patents are not disclosed.
Macro Economic Sensitivity
The business is sensitive to global and domestic economic conditions, government policies, and cyclical demand patterns in the recycling sector.
Geopolitical Risks
Trade agreements and global economic developments are cited as external factors that may affect operations.
Regulatory & Governance
Industry Regulations
Operations are subject to government regulations, tax regimes, and environmental compliance standards specific to the recycling industry.
Environmental Compliance
The company maintains compliance with industry and environmental standards, which is a key focus for the plant's leadership.
Taxation Policy Impact
The effective tax rate for FY25 was approximately 16%, with current tax of INR 34.76 Lakh on a PBT of INR 216.11 Lakh.
Legal Contingencies
The company has zero pending litigations that would impact its financial position as of March 31, 2025.
Risk Analysis
Key Uncertainties
Raw material price volatility and availability represent the primary business risk, impacting 91.5% of the cost structure.
Credit & Counterparty Risk
Trade receivables increased by INR 1.15 Cr in FY25, indicating a growing credit exposure to customers.