💰 Financial Performance

Revenue Growth by Segment

Standalone revenue grew 36.8% YoY to INR 2,592.62 Lakhs in Q2 FY26 compared to INR 1,895.07 Lakhs in Q2 FY25. For H1 FY26, standalone revenue grew 39.8% YoY to INR 4,744.85 Lakhs from INR 3,394.19 Lakhs.

Geographic Revenue Split

The company maintains a nationwide reach with proximity to clients to enable faster service delivery, though specific percentage contribution from each region is not disclosed in available documents.

Profitability Margins

Standalone PAT margin improved to 6.79% in Q2 FY26 from 6.63% in Q2 FY25. Consolidated PAT margin for Q2 FY26 was 6.32% compared to 7.15% in Q1 FY26.

EBITDA Margin

Standalone EBITDA margin was 17.0% in Q2 FY26 (INR 440.57 Lakhs) compared to 18.6% in Q2 FY25 (INR 351.80 Lakhs). Consolidated EBITDA for Q2 FY26 was INR 524.41 Lakhs, up 13.2% from Q1 FY26.

Capital Expenditure

Property, Plant and Equipment (Standalone) stood at INR 1,637.04 Lakhs as of September 2025, compared to INR 1,764.95 Lakhs in March 2025.

Credit Rating & Borrowing

Finance costs for H1 FY26 were INR 130.22 Lakhs. The company saw a significant net cash inflow from financing activities of INR 2,687.36 Lakhs in H1 FY26, suggesting new capital raising or borrowing.

⚙️ Operational Drivers

Raw Materials

Printing materials, paper, and logistics consumables represent the primary raw materials, with 'cost of materials consumed' totaling INR 2,300.69 Lakhs in Q2 FY26.

Raw Material Costs

Cost of materials consumed was INR 2,300.69 Lakhs in Q2 FY26, representing 71.4% of consolidated revenue. This reflects a high dependency on material procurement for printing and logistics operations.

Manufacturing Efficiency

Focus on automation and process optimization is cited as a key driver for improving profitability and operational excellence.

Logistics & Distribution

Distribution is managed through an integrated logistics setup featuring AI routing and EV adoption to reduce the environmental footprint.

📈 Strategic Growth

Expected Growth Rate

39.80%

Growth Strategy

Growth will be achieved through 'Vision 2026' which focuses on technology-led integration, expanding the software-driven communication vertical (Email/SMS/WhatsApp), and optimizing logistics through AI routing. The company leverages its nationwide reach and integrated setup to secure new contracts and retain existing clients, as evidenced by the 39.8% YoY revenue growth in H1 FY26.

Products & Services

Digitization, creative design, software-driven communication (Email/SMS/WhatsApp), newspaper advertising, manpower staffing, anti-counterfeit printing, and AI logistics routing.

Brand Portfolio

DJML

New Products/Services

New offerings include software-driven communication campaigns (Email/SMS/WhatsApp), AI logistics routing, and anti-counterfeit printing solutions.

Market Expansion

Expansion is focused on leveraging nationwide reach and proximity to clients to strengthen engagement and service delivery.

Strategic Alliances

The company utilizes collaborations to enhance its service portfolio and improve market access.

🌍 External Factors

Industry Trends

The industry is shifting from traditional print to integrated tech-enabled logistics and digital communication. DJML is positioning itself through AI logistics routing and software-driven campaigns (Email/SMS/WhatsApp) to capture the shift toward digital-first workflows.

Competitive Moat

Integrated setup covering production, storage, and distribution provides a cost and quality moat. Proximity to clients and nationwide reach create high switching costs for corporate clients requiring end-to-end logistics and printing solutions.

Macro Economic Sensitivity

The company is sensitive to corporate advertising budgets and digitization trends; a slowdown in these sectors would directly impact the 36.8% revenue growth seen in the standalone business.

Consumer Behavior

Consumer trend shifts toward digital-first workflows and eco-friendly materials (EV adoption) are driving the company's strategic roadmap.

⚖️ Regulatory & Governance

Industry Regulations

The company complies with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Companies Act, 2013 regarding corporate governance and financial reporting.

Environmental Compliance

The company spent INR 10.07 Lakhs on CSR activities for FY25, representing 2% of average net profits.

Taxation Policy Impact

The effective tax rate for Q2 FY26 was approximately 25.2% (INR 66.25 Lakhs tax on INR 262.60 Lakhs PBT).

⚠️ Risk Analysis

Key Uncertainties

Negative operating cash flow of INR 1,831.49 Lakhs in H1 FY26 poses a liquidity risk if working capital cycles extend further.

Geographic Concentration Risk

While the company has a nationwide reach, specific regional revenue concentration percentages are not disclosed.

Third Party Dependencies

Material costs represent 71.4% of revenue (INR 2,300.69 Lakhs), indicating high sensitivity to supplier pricing and availability.

Technology Obsolescence Risk

The transition from physical print to digital communication is a risk; mitigated by the company's expansion into SMS/WhatsApp/Email campaigns and AI-driven logistics.

Credit & Counterparty Risk

Trade payables stood at INR 242.64 Lakhs as of September 2025, a significant reduction from INR 1,598.17 Lakhs in March 2025, suggesting aggressive vendor payments or reduced procurement.