💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 4.6% YoY to INR 2,812 Cr in FY 2024-25 compared to INR 2,687 Cr in FY 2023-24. Standalone revenue increased by 3.2%. Segments include Abrasives, Ceramics & Plastics, and Digital Services.

Geographic Revenue Split

Not disclosed in available documents, though the company operates as part of the Saint-Gobain transnational group with global IT service delivery.

Profitability Margins

Consolidated net profit margin witnessed a fall from 14.3% to 13.2% in FY 2024-25. Standalone Return on Net Worth decreased from 18.6% to 16.1%, while consolidated Return on Net Worth fell from 18.6% to 16.4%.

EBITDA Margin

EBIT margin (on Net Revenue) declined from 19.2% in FY 2023-24 to 17.8% in FY 2024-25. Consolidated operating profit decreased by 3.2% YoY, while standalone operating profit fell by 5.4%.

Capital Expenditure

The company approved an investment of up to INR 0.86 Cr (increased from INR 0.77 Cr) in Jamnagar Renewables Two Private Limited for green energy sourcing. Higher depreciation was cited as a major reason for the drop in EBIT.

Credit Rating & Borrowing

ICRA suspended the [ICRA]AA(stable) and [ICRA]A1+ ratings for INR 27.0 Cr fund-based facilities, INR 34.0 Cr non-fund based facilities, and INR 25.0 Cr short-term debt due to non-cooperation/lack of information.

⚙️ Operational Drivers

Raw Materials

Abrasive grains, resins, and ceramic materials (implied by segment names); specific chemical names not disclosed in available documents.

Import Sources

Not disclosed in available documents; however, the company notes volatility in prices due to global geopolitical situations.

Capacity Expansion

Business Assets Turnover Ratio stood at 2.52 in FY 2024-25 compared to 2.37 in FY 2023-24. Specific MTPA capacity figures were not disclosed.

Raw Material Costs

Raw material and finished goods prices are reported as volatile due to geopolitical dynamics; specific cost as a % of revenue is not disclosed.

Manufacturing Efficiency

Return on Business Assets (ROI on business EBIT) was 39.5% in FY 2024-25, a decline from 41.2% in FY 2023-24 and 47.6% in FY 2022-23.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth is driven by the 'Unleash Growth in GNO' initiative focusing on outperforming market benchmarks, maximizing growth through the High-Performance Solutions (HPS) sector, and leveraging the captive Digital Services unit (650 employees) for global Saint-Gobain IT needs.

Products & Services

Abrasives (grinding wheels, etc.), Ceramics, Plastics, and Digital Services (Application development, infrastructure management, and cybersecurity).

Brand Portfolio

Norton, Grindwell, Saint-Gobain.

New Products/Services

Expansion into green energy sourcing to improve sustainability profile; Digital Services growth is currently limited to cost inflation adjustments.

Market Expansion

Focus on the High-Performance Solutions (HPS) sector catering to global markets through the Saint-Gobain network.

Strategic Alliances

Subsidiary of Compagnie de Saint-Gobain (France); collaboration with Jamnagar Renewables Two Private Limited for power.

🌍 External Factors

Industry Trends

Shift towards High-Performance Solutions and green energy adoption; the IT services industry is moving toward captive cost-plus models for transnational groups.

Competitive Landscape

Operates in a global market for HPS; faces competition in Abrasives and Ceramics from both domestic and international players.

Competitive Moat

Strong moat derived from being part of the Saint-Gobain group (Euro 46.60 billion sales) and the long-standing 'Norton' brand association since the 1960s.

Macro Economic Sensitivity

Sensitive to India's industrial sector growth (recorded at 8.3% in Q1) and overall GDP growth estimated at 6.4%-6.5%.

Geopolitical Risks

Evolving geopolitical dynamics and US tariffs are cited as primary risks to trade and price stability.

⚖️ Regulatory & Governance

Industry Regulations

Subject to SEBI Listing Obligations and Disclosure Requirements (LODR) 2015; follows Accounting Standards on Segment reporting for Abrasives, Ceramics & Plastics, and Digital Services.

Environmental Compliance

Investing in renewable energy (JRTPL) to comply with green energy sourcing goals.

Taxation Policy Impact

Received tax orders from the Office of the Deputy Commissioner of Commercial Taxes, Bengaluru, and the State Tax Officer, Kerala (Tripunithura) in December 2025.

Legal Contingencies

Pending tax orders from Bengaluru and Kerala authorities as disclosed in December 2025; specific INR values for these disputes were not provided in the announcements.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices and global trade uncertainty due to US tariffs could impact margins by more than the 3.2% operating profit drop seen this year.

Geographic Concentration Risk

High dependence on the Indian economic environment for manufacturing, while Digital Services are concentrated on the global Saint-Gobain group.

Third Party Dependencies

Captive IT unit dependency on Saint-Gobain group for 100% of its revenue.

Technology Obsolescence Risk

Digital Services unit manages cybersecurity and infrastructure to mitigate tech risks for the parent group.