GUJRAFFIA - Guj. Raffia Inds

📊 NSE: GUJRAFFIA 🏢 Textiles - Products 📅 Last Updated: 12/13/2025 22:42

💰 Financial Performance

Revenue Growth by Segment

Total income for the half-year ended September 30, 2025, reached INR 37.75 Cr. Specific segment-wise revenue splits were not disclosed, but the company highlights growth in domestic markets for tarpaulin, fabric, and sacks.

Profitability Margins

Profit before tax (PBT) margin for the half-year ended September 30, 2025, was approximately 1.88% (INR 0.71 Cr PBT on INR 37.75 Cr total income).

EBITDA Margin

Estimated EBITDA margin for the half-year ended September 30, 2025, is 5.79%, calculated from PBT (INR 0.71 Cr) plus Depreciation (INR 1.12 Cr) and Finance Costs (INR 0.35 Cr).

Capital Expenditure

The company planned to complete plant capacity expansions by the end of FY 2024-25. Depreciation increased by 65.6% YoY to INR 1.12 Cr for the half-year ended September 2025, reflecting significant recent asset additions.

Credit Rating & Borrowing

Not disclosed. Non-current borrowings were INR 2.18 Cr as of September 30, 2025, a reduction of 22.6% from INR 2.82 Cr in the previous year.

⚙️ Operational Drivers

Raw Materials

Petrochemical-based polymers (PP/PE) represent the primary raw material cost, estimated at 82% of total income (INR 30.95 Cr for H1 FY26).

Key Suppliers

Not disclosed; documents refer generally to large petrochemical manufacturers.

Capacity Expansion

Plant capacity expansions were scheduled for completion by the end of FY 2024-25 to drive growth in domestic tarpaulin and fabric markets.

Raw Material Costs

Raw material and manufacturing-related costs totaled INR 30.95 Cr for the half-year ended September 30, 2025, representing approximately 82% of total income.

📈 Strategic Growth

Growth Strategy

The company plans to achieve growth through the completion of plant capacity expansions by the end of 2024-25. It is targeting increased demand in domestic markets for tarpaulin, fabric, and sacks, specifically driven by the expansion of food-grain packaging by government agencies and a significant presence in the fertilizer and agriculture sectors.

Products & Services

Tarpaulin, HDPE/PP woven fabric, and sacks used for food-grain and fertilizer packaging.

Market Expansion

Targeting domestic markets for tarpaulin, fabric, and sacks, particularly in the fertilizer and agriculture sectors.

🌍 External Factors

Industry Trends

The industry is seeing a shift towards increased government procurement for food-grain packaging, which is expected to drive domestic demand for sacks and fabric. Despite a global slowdown, the domestic market for tarpaulin remains optimistic due to its applications in agriculture.

Competitive Landscape

Large petrochemical manufacturers provide significant competition due to their scale and lower cost structures for raw materials.

Competitive Moat

The company's moat is based on its established presence in the fertilizer and agriculture sectors and its ability to secure government-driven packaging contracts, providing a competitive foothold in the domestic market.

Macro Economic Sensitivity

Sensitive to global economic slowdowns and domestic agricultural cycles.

Geopolitical Risks

Global slowdown mentioned as a potential risk factor affecting industrial demand.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Ind AS and GST regulations is required; however, GST reconciliation was pending as of the last audit.

Taxation Policy Impact

The company reported a tax provision of INR (18.35) lacs for the half-year ended September 30, 2025.

Legal Contingencies

As of March 31, 2025, balances with revenue authorities and unpaid duties/taxes related to GST are pending reconciliation. The company has also not provided for or quantified deferred tax assets/liabilities.