💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment. Total income for FY25 was INR 53.33 Cr (Rs. 5,332.64 Lakhs). In H1 FY26, revenue was INR 10.93 Cr, representing a 29.9% decrease compared to H1 FY25 revenue of INR 15.59 Cr.

Geographic Revenue Split

100% of the company's revenue is generated from operations within India, as the company conducts business in only one geographical segment.

Profitability Margins

Net Profit Margin for FY25 was 2.44%, a sharp decline from 15.79% in the previous year. However, H1 FY26 margins improved significantly to 7.9% (INR 0.86 Cr profit on INR 10.93 Cr revenue) compared to 0.67% in H1 FY25.

EBITDA Margin

Operating profit before working capital changes for FY25 was INR 1.36 Cr, representing an EBITDA-equivalent margin of 2.56% of total income.

Capital Expenditure

The company made a significant investment in fixed assets totaling INR 18.13 Cr (Rs. 1,812.90 Lakhs) during FY25 to enhance manufacturing capabilities.

Credit Rating & Borrowing

Finance costs for FY25 were minimal at INR 0.02 Cr (Rs. 2.45 Lakhs), suggesting low reliance on interest-bearing debt or very favorable borrowing terms.

⚙️ Operational Drivers

Raw Materials

Raw materials (unspecified types) represent the largest cost component, totaling INR 49.15 Cr in FY25, which is 92.18% of total income.

Capacity Expansion

The company is actively investing in enhancing manufacturing capabilities and diversifying product offerings, evidenced by the INR 18.13 Cr fixed asset purchase in FY25.

Raw Material Costs

Raw material costs were INR 49.15 Cr in FY25. A significant increase in these costs led to an 84.52% decline in net profit margins YoY during that period.

Manufacturing Efficiency

The company is focusing on improving operational efficiencies; however, specific capacity utilization percentages were not disclosed.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through the enhancement of manufacturing capabilities, diversification of product offerings into new customer applications, and the implementation of value-engineered solutions to address varied market needs.

Products & Services

The company provides value-engineered solutions and manufactured components for various industrial applications and sectors.

Brand Portfolio

Electro Force (India) Limited.

New Products/Services

The company is diversifying its product offerings to address a wider variety of market needs, though specific revenue contributions from new launches are not quantified.

Market Expansion

The company aims to address a wide variety of market needs through sector-specific applications within the Indian market.

🌍 External Factors

Industry Trends

The industry is shifting toward automation and technology integration. The company is positioning itself by leveraging technology to strengthen internal controls and manufacturing precision.

Competitive Landscape

The company operates in a competitive SME environment where cost leadership and manufacturing efficiency are primary drivers.

Competitive Moat

The moat is built on 'value-engineered solutions' and manufacturing flexibility, allowing the company to serve diverse sectors. This is sustainable as long as the company maintains its INR 18 Cr+ investment pace in manufacturing tech.

Macro Economic Sensitivity

Highly sensitive to raw material price inflation, which caused a significant contraction in Return on Capital Employed (ROCE) from 11.28% to 2.47% in FY25.

Consumer Behavior

Demand is driven by industrial sectors requiring specialized electrical or mechanical components and value-engineered solutions.

⚖️ Regulatory & Governance

Industry Regulations

The company complies with the Companies Act, 2013 and Indian Accounting Standards (Ind AS) section 133. It is currently exempted from compulsory Ind AS adoption as an SME listed entity.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 26.4% (INR 0.46 Cr tax on INR 1.74 Cr PBT).

Legal Contingencies

The company reported zero pending litigations that would impact its financial position as of the reporting date.

⚠️ Risk Analysis

Key Uncertainties

Revenue recognition is identified as a Key Audit Matter due to potential management pressure to achieve performance targets, creating a risk of overstatement.

Geographic Concentration Risk

100% of revenue is concentrated in the Indian market, making the company vulnerable to domestic economic downturns.

Third Party Dependencies

High dependency on raw material suppliers, with material costs consuming 92% of total income.

Technology Obsolescence Risk

The company is mitigating technology risks by committing to leveraging automation and technology in its internal control and manufacturing processes.

Credit & Counterparty Risk

Trade receivables stood at INR 20.77 Cr in FY25, representing approximately 142 days of sales, indicating a high credit exposure and potential working capital strain.