FEL - Future Enterp.

📊 NSE: FEL 🏢 Trading 📅 Last Updated: 12/13/2025 22:11

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue declined 73.5% YoY to INR 1,422.14 Cr in FY21 from INR 5,365.66 Cr. Standalone revenue saw a sharper de-growth of 78.06% to INR 886.93 Cr. FMCG segment previously generated INR 4,040 Cr (FY20) while Fashion generated INR 3,331 Cr (FY20).

Geographic Revenue Split

Not specifically disclosed in available documents, though operations are primarily domestic across India with a Singapore-based subsidiary (FMSPL) that ceased operations in July 2021.

Profitability Margins

Net loss widened significantly with a consolidated PAT of INR -1,220.17 Cr in FY21/FY23. Standalone PAT was INR -1,049.90 Cr in FY21. Profitability was severely impacted by a 78% drop in sales and high fixed costs.

EBITDA Margin

Consolidated EBITDA margin stood at 24.91% in FY22 (INR 1,336.67 Cr) but plummeted to 11.78% in FY23 (INR 167.50 Cr). Standalone PBILDT was negative INR 1,365.03 Cr in FY23.

Capital Expenditure

Return on capital employed (ROCE) dropped from 11.58% in FY20 to 2.75% in FY21. Specific planned CAPEX is not disclosed due to the ongoing Corporate Insolvency Resolution Process (CIRP).

Credit Rating & Borrowing

The company is rated 'IVR D; ISSUER NOT COOPERATING', indicating default status. Interest and financial charges increased from INR 635.75 Cr to higher levels, with an interest coverage ratio of -88.24x in FY23.

⚙️ Operational Drivers

Raw Materials

Textiles and fabrics for denim manufacturing (men's, women's, and kids' wear) and FMCG raw materials represent the primary input costs, though specific % splits per material are not provided.

Import Sources

Global sourcing was previously handled via Singapore (FMSPL) for international markets; domestic sourcing is primarily India-based.

Key Suppliers

Not specifically named, but the company has high internal dependency, with Future Supply Chain Solutions Limited handling logistics.

Capacity Expansion

Current capacity is focused on retail infrastructure leasing and fashion manufacturing; however, expansion is halted as the company is under insolvency (CIRP) with 39 CoC meetings held as of late 2025.

Raw Material Costs

Not disclosed as a specific percentage of revenue in the provided documents, but operational challenges and disrupted supply lines are cited as major cost drivers.

Manufacturing Efficiency

ROCE fell to 2.75% in FY21, indicating extremely low capital efficiency due to pandemic-induced lockdowns and restricted movement of goods.

Logistics & Distribution

Distribution is integrated with Future Group's retail network (Big Bazaar, Central, Brand Factory) and was intended to scale via the Reliance network.

📈 Strategic Growth

Expected Growth Rate

20-25%

Growth Strategy

The strategy relied on scaling FMCG and Fashion through the Reliance distribution network to achieve economies of scale and 20% CAGR in fashion sourcing. However, this is currently superseded by the Corporate Insolvency Resolution Process (CIRP).

Products & Services

Retail infrastructure leasing, denim apparel (men's, women's, kids' wear), FMCG products, and insurance policies (via JVs).

Brand Portfolio

Big Bazaar, Easyday, Central, Brand Factory, Nilgiris, Aadhaar, and Futurebazaar.com.

New Products/Services

New age fashion brands and online shopping via www.futurebazaar.com were planned to bridge the gap of negative net worth.

Market Expansion

Planned expansion into 'General Trade' for FMCG and 'Online Business Activities' to counter physical retail restrictions.

Market Share & Ranking

Described as a 'leading integrated fashion business' in India, though specific market share % is not provided.

Strategic Alliances

Strategic alliance with Reliance Group was intended to provide access to added physical distribution channels and scale FMCG volumes.

🌍 External Factors

Industry Trends

The industry is shifting toward online business activities; FEL noted a focus on e-portal growth to mitigate the 'unprecedented uncertainty' of physical retail.

Competitive Landscape

Key competitors include other large-scale fashion retailers and FMCG distributors, with Reliance being both a potential partner and a dominant market force.

Competitive Moat

Moat was based on 'integrated fashion sourcing' and a vast physical store network. This moat has been breached by high debt (INR 6,846 Cr) and insolvency proceedings.

Macro Economic Sensitivity

Highly sensitive to GDP and consumption; FY21 revenues fell 78% due to COVID-19 lockdowns affecting the services and retail sectors.

Consumer Behavior

Shift toward online shopping and 'consumption space through the internet' led to the creation of Future E-Commerce Infrastructure Limited.

Geopolitical Risks

International sourcing from Singapore and other markets was disrupted by global movement restrictions.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and SEBI LODR; currently under the Insolvency and Bankruptcy Code (IBC) following NCLT orders.

Environmental Compliance

The company monitors energy conservation and technology absorption as per Section 134(3)(m) of the Companies Act 2013.

Taxation Policy Impact

Tax expense for FY21 was INR 17.89 Cr despite losses, reflecting deferred tax adjustments or minimum alternate tax requirements.

Legal Contingencies

The company is under Corporate Insolvency Resolution Process (CIRP). There are significant audit qualifications regarding the non-inclusion of 13 step-down subsidiaries (e.g., Acute Retail Infra, Brattle Foods) in financial results.

⚠️ Risk Analysis

Key Uncertainties

The 'Going Concern' assumption is at high risk; auditors noted that if the assumption is inappropriate, massive adjustments to asset values would be required.