ESPRIT - Esprit

📊 NSE: ESPRIT 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 21:57

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations for FY24-25 reached INR 321.48 Cr. The Engineered Stones segment grew 23.7% YoY to INR 236.77 Cr, while the Unsaturated Polyester Resin segment grew 4.4% YoY to INR 84.71 Cr. However, H1 FY26 revenue was lower at INR 99.19 Cr, leading to a loss due to low absorption of fixed overheads.

Geographic Revenue Split

Not specifically disclosed in available documents, though the company notes sensitivity to both global and Indian demand-supply conditions for its engineered stone products.

Profitability Margins

Net Profit Margin increased in FY24-25 as PAT grew 66.7% to INR 17.20 Cr. This was driven by a 19.8% reduction in finance costs (from INR 9.97 Cr to INR 7.99 Cr). H1 FY26 saw a downturn with a consolidated net loss of INR 2.17 Cr due to subdued revenue and fixed costs.

EBITDA Margin

Core profitability improved in FY24-25 as Profit Before Tax rose 56.7% to INR 22.08 Cr. EBITDA was supported by a 32.4% increase in other income to INR 2.50 Cr and controlled depreciation growth of 4.5% (INR 9.54 Cr).

Capital Expenditure

The company raised INR 50.35 Cr through an IPO listed on August 2, 2024. As of September 30, 2025, it had utilized INR 6.50 Cr for investment in its subsidiary, Haique Stones Private Limited (HSPL), and INR 19.00 Cr for other corporate objects.

Credit Rating & Borrowing

The company has a 'Stable' outlook from CRISIL. Borrowing costs are impacted by a total debt load including INR 13.12 Cr in long-term borrowings and INR 45.67 Cr in short-term borrowings as of September 2025. Liquidity is considered 'Stretched' with bank limit utilization averaging 95%.

⚙️ Operational Drivers

Raw Materials

Key raw materials include feedstock for Unsaturated Polyester Resin and stone aggregates for Engineered Stones. Feedstock availability and pricing are cited as critical factors for operational stability.

Import Sources

Not specifically disclosed in available documents; however, the company monitors global feedstock prices, suggesting international sourcing for resin components.

Capacity Expansion

Current tangible assets are valued at INR 107.67 Cr as of September 2025. The company is utilizing IPO proceeds to fund working capital and subsidiary investments to support growth, though specific MTPA capacity figures were not provided.

Raw Material Costs

Cost of materials consumed for H1 FY26 was INR 37.17 Cr, representing approximately 37.5% of total income. In FY24-25, revenue growth in the resin segment (4.4%) was significantly lower than stones, indicating varying cost-pass-through efficiencies.

Manufacturing Efficiency

H1 FY26 performance showed 'low absorption of fixed overheads' due to subdued revenue, indicating that the company requires higher volume to maintain manufacturing efficiency and break-even levels.

Logistics & Distribution

Distribution costs are subject to global and Indian demand-supply conditions; specific logistics spend as a % of revenue was not disclosed.

📈 Strategic Growth

Expected Growth Rate

18%

Growth Strategy

Growth is targeted through the utilization of INR 50.35 Cr in IPO funds for working capital and investment in the subsidiary Haique Stones Private Limited. The strategy focuses on scaling the Engineered Stones segment, which grew 23.7% in the previous fiscal year, and leveraging the extensive experience of promoters Sunil Lunawath and Nitin Gattani.

Products & Services

Engineered Stones (Quartz/Marble) and Unsaturated Polyester Resin.

Brand Portfolio

Haique (via Haique Stones Private Limited) and Esprit.

New Products/Services

Not specifically disclosed, though the company is investing in its subsidiary HSPL to expand its market presence in the stone industry.

Market Expansion

The company is focusing on global and Indian markets for its building products, supported by the recent transition to a public listed entity to increase brand visibility.

Strategic Alliances

The company operates through subsidiaries including Haique Stones Private Limited and previously Addwaya Chemicals Private Limited (51% stake sold in September 2025).

🌍 External Factors

Industry Trends

The engineered stone industry is influenced by cyclical demand in real estate. Future outlook depends on improved profitability and revenue growth to offset fixed overheads, with a current trend toward consolidation and regulatory compliance.

Competitive Landscape

The company competes in the building products industry; key sensitivity factors include the ability to maintain revenue growth amid competition from other engineered stone and resin manufacturers.

Competitive Moat

The moat is built on the 'extensive experience' of the promoters in the engineered stones and building products industry, providing a competitive edge in sourcing and market relationships.

Macro Economic Sensitivity

Highly sensitive to global economic developments and Indian demand-supply conditions in the construction and building materials sector.

Consumer Behavior

Demand is driven by trends in the building products industry and consumer preference for engineered surfaces over natural stone.

Geopolitical Risks

Trade barriers and economic developments in countries where the company conducts business are cited as 'forward-looking' risk factors.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to pollution control norms and the Companies Act, 2013. The closure of Addwaya Chemicals highlights the high impact of environmental regulations on the resin manufacturing segment.

Environmental Compliance

The company faced a major regulatory action where its subsidiary, Addwaya Chemicals, received a closure direction from the Rajasthan State Pollution Control Board in March 2025, leading to the eventual disposal of the subsidiary.

Taxation Policy Impact

The effective tax rate for FY24-25 was approximately 22%, with a total tax expense of INR 4.88 Cr on a PBT of INR 22.08 Cr.

Legal Contingencies

The company has an outstanding corporate guarantee of INR 14.50 Cr given to HDFC Bank for its erstwhile subsidiary Addwaya Chemicals. It also has an outstanding unsecured loan of INR 6.05 Cr (including interest) due from the same entity.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the recovery of loans and the potential invocation of the INR 14.50 Cr corporate guarantee for the closed subsidiary Addwaya Chemicals. Revenue volatility in the resin segment (only 4.4% growth) also poses a risk.