💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment (scientific instruments). Revenue from operations for the half-year ended September 30, 2025, was INR 16.18 Cr, representing a 4.88% decrease compared to INR 17.01 Cr for the half-year ended September 30, 2024. Total revenue for the full year ended March 31, 2025, was INR 37.17 Cr.

Geographic Revenue Split

The company has a significant export presence with foreign exchange earnings of INR 6.53 Cr in FY 2024-25, contributing approximately 17.57% to the total revenue of INR 37.17 Cr. The remaining 82.43% is primarily derived from the Indian market.

Profitability Margins

Net Profit Margin saw a drastic decline from 7.56% in H1 FY25 to 0.55% in H1 FY26. This was driven by a sharp drop in Net Profit from INR 1.29 Cr to INR 0.09 Cr over the same period, caused by rising employee costs and stagnant revenue.

EBITDA Margin

Operating profit before working capital changes for FY 2024-25 was INR 6.12 Cr, representing an EBITDA-equivalent margin of 16.46% on revenue of INR 37.17 Cr. However, Profit Before Tax for H1 FY26 fell to INR 0.22 Cr from INR 1.86 Cr in H1 FY25, a decline of 88.17%.

Capital Expenditure

In FY 2024-25, the company invested INR 1.37 Cr in the purchase of fixed assets. As of March 31, 2025, tangible fixed assets stood at INR 7.39 Cr.

Credit Rating & Borrowing

Long-term borrowings were minimal at INR 0.25 Cr as of March 31, 2025. Short-term borrowings stood at INR 1.76 Cr. Specific credit ratings and interest rate percentages were not disclosed in the available documents.

⚙️ Operational Drivers

Raw Materials

Scientific components and materials for opto-mechatronics. Cost of materials consumed was INR 4.28 Cr in H1 FY26, representing 26.45% of total revenue.

Import Sources

Not specifically disclosed, though the company reported a foreign exchange outgo of INR 2.39 Cr in FY 2024-25, indicating significant international sourcing of components.

Raw Material Costs

Raw material costs as a percentage of revenue stood at 26.45% in H1 FY26 (INR 4.28 Cr) compared to 21.74% in H1 FY25 (INR 3.70 Cr). This 4.71 percentage point increase indicates rising procurement costs or less favorable product mix.

Manufacturing Efficiency

Employee benefit expenses are a major cost driver, reaching INR 9.80 Cr in H1 FY26 (60.57% of revenue), up from INR 8.43 Cr in H1 FY25 (49.56% of revenue), suggesting a significant drop in labor productivity or over-staffing.

Logistics & Distribution

Other expenses, which include distribution and administrative costs, were INR 2.76 Cr in H1 FY26, representing 17.06% of revenue.

📈 Strategic Growth

Growth Strategy

The company focuses on technology absorption and R&D to maintain its position in the scientific instrument market. It leverages its 364-member workforce to scale operations and targets international markets, as evidenced by INR 6.53 Cr in export earnings.

Products & Services

Scientific instruments for research, industry, and education, specifically in the opto-mechatronics field.

Brand Portfolio

HOLMARC

Market Expansion

The company is actively pursuing international markets, with current export earnings representing 17.57% of total revenue.

🌍 External Factors

Industry Trends

The industry is shifting toward integrated opto-mechatronics and automated research tools. Holmarc is positioning itself as a single-segment specialist in India to capture this shift.

Competitive Landscape

The company operates in a niche market for scientific instruments, competing with both domestic specialized players and international scientific equipment brands.

Competitive Moat

The company's moat is built on specialized technical expertise and a large workforce (364 employees) dedicated to scientific instrument manufacturing, which is difficult for generic manufacturers to replicate.

Macro Economic Sensitivity

Highly sensitive to research and development spending cycles in India and global markets.

Consumer Behavior

Increased focus on indigenous manufacturing (Make in India) for research institutions is a favorable trend for the company.

Geopolitical Risks

Trade barriers or restrictions on scientific equipment could impact the 17.57% of revenue derived from exports.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with the Companies Act 2013, SEBI LODR Regulations, and Secretarial Standards. It is subject to the Maternity Benefit Act, 1961.

Environmental Compliance

The company reports compliance with energy conservation and technology absorption rules, though specific ESG costs were not disclosed.

Taxation Policy Impact

The company provided INR 0.05 Cr for current tax in H1 FY26 on a PBT of INR 0.22 Cr, implying an effective tax rate of approximately 22.7%.

Legal Contingencies

The Secretarial Audit reported a regulatory non-compliance regarding a vacancy in the office of the Chief Financial Officer (CFO) which was not filled within the mandatory three-month period as per SEBI Regulation 26A(2).

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the sharp decline in profitability (93% YoY profit drop in H1 FY26), which threatens the sustainability of current dividend levels (INR 0.40 per share).

Geographic Concentration Risk

Approximately 82% of revenue is concentrated in the Indian market, making it vulnerable to domestic policy changes regarding research funding.

Technology Obsolescence Risk

High risk given the rapid pace of change in scientific instrumentation; requires constant R&D and technology absorption.

Credit & Counterparty Risk

Trade receivables stood at INR 4.09 Cr as of March 31, 2025, representing approximately 40 days of sales, indicating relatively healthy collection cycles.