💰 Financial Performance

Revenue Growth by Segment

Surface Finishing (84% of total revenue) grew 12.48% YoY to INR 989.51 Cr in FY25. Engineering revenue doubled over 4 years to INR 156 Cr in FY24. Shoppertainment (3% of revenue) de-grew 2% in FY24.

Geographic Revenue Split

Primarily domestic (India); established a branch in Dubai to drive growth in the MENA region and maintains a wholly-owned subsidiary in Shanghai, China.

Profitability Margins

Operating profit margin (EBIT) was 18.99% in FY25 (vs 18.88% in FY24). Net profit margin stood at 14.06% in FY25 (vs 13.74% in FY24). H1FY25 operating margin reached 20.83% due to softening raw material prices.

EBITDA Margin

Consolidated operating margin improved 180 bps in FY24 to 18.00%. Shoppertainment segment PBILDT margin exceeded 73% in FY24.

Capital Expenditure

H1FY25 payment towards purchase of property, plant, and equipment was INR 12.33 Cr. The company has moderate capex plans in the near term.

Credit Rating & Borrowing

Rated by CARE Ratings; strong financial risk profile with an Interest Coverage Ratio of 81 times in FY25, up from 52 times in FY24.

⚙️ Operational Drivers

Raw Materials

Chemicals for electroplating and surface finishing, paint resins, and lubricants representing the bulk of input costs.

Import Sources

Sourced domestically and internationally, with strategic presence in the Middle East and China to facilitate procurement.

Raw Material Costs

Susceptible to price fluctuations; softening prices in H1FY25 significantly improved operating margins to 20.83%.

📈 Strategic Growth

Expected Growth Rate

9.15%

Growth Strategy

Growth is driven by geographic expansion into the MENA region via a Dubai branch, adding new customer and product segments, and developing sustainable solutions in the Paints segment to meet evolving competition.

Products & Services

Electroplating chemicals, surface finishing engineering equipment, industrial paints, lubricants, and retail mall space.

Brand Portfolio

Growel, Growel's Mall.

New Products/Services

Developing new cost-effective and sustainable solutions in the Paints and other segments.

Market Expansion

Targeting the MENA region through a Dubai branch and maintaining a presence in China via Grauer & Weil (Shanghai) Limited.

Strategic Alliances

Associate companies Grauer & Weil Engineering and Growel Sidasa Industries were struck off in July and August 2025 respectively.

🌍 External Factors

Industry Trends

Manufacturing transformation in India and a shift toward sustainable chemical solutions are key growth drivers.

Competitive Landscape

Operates in a competitive environment; mall performance is sensitive to competition in its catchment area.

Competitive Moat

Strong moat in high-margin real estate (73%+ PBIT margin) and established dominance in surface finishing chemicals for the automotive sector.

Macro Economic Sensitivity

Highly sensitive to the automotive industry cycle and domestic manufacturing landscape transformation.

Consumer Behavior

Increased footfalls in the mall segment (prior to closure) and demand for sustainable industrial solutions.

Geopolitical Risks

Supply chain disruptions due to global political situations; mitigated by alternative vendor development.

⚖️ Regulatory & Governance

Industry Regulations

Subject to pollution norms for chemical manufacturing and requires judicial clearance for mall operations.

Taxation Policy Impact

Direct taxes paid in H1FY25 amounted to INR 13.03 Cr.

Legal Contingencies

The company's mall is currently closed and requires judicial clearance to operate, impacting 9% of overall PBIT.

⚠️ Risk Analysis

Key Uncertainties

Timeline for reopening the mall and the 30-40% revenue reliance on the cyclical automotive industry.

Geographic Concentration Risk

Primarily concentrated in India, with emerging exposure to MENA and China.

Third Party Dependencies

Reliance on raw material suppliers; mitigated by developing alternative vendors.

Technology Obsolescence Risk

Mitigated by R&D focus on sustainable and cost-effective solutions in Paints and Chemicals.

Credit & Counterparty Risk

Receivables quality is healthy with debtors' turnover improving to 62 days in FY25 from 64 days in FY24.