💰 Financial Performance

Revenue Growth by Segment

Total Operating Income grew by 48% YoY to INR 1,596.16 Cr in FY25 from INR 1,078.62 Cr in FY24. The growth was primarily driven by the iPhone segment, where sales volume increased by 53% to 2,06,980 units from 1,35,000 units in the previous year. iPhone sales accounted for 87% of total revenue in FY25, down from 92% in FY24 as other Apple products like iPads and Apple Watches increased their contribution.

Geographic Revenue Split

The company's revenue is concentrated in Western and Central India. Gujarat and Madhya Pradesh together contributed 74% of Total Operating Income in FY25, a decrease from 86% in FY24, indicating successful geographic diversification into Chhattisgarh and Uttar Pradesh. Sales in Gujarat and Uttar Pradesh showed significant absolute growth during the FY25 period.

Profitability Margins

Profitability remains thin due to the trading nature of the business. Operating margins marginally dipped to 1.64% in FY25 from 1.70% in FY24. Net Profit Margin (PAT) remained stable but thin at 0.79% in FY25 compared to 0.80% in FY24. Despite thin margins, absolute PAT grew by 46% to INR 12.58 Cr in FY25 from INR 8.59 Cr in FY24 due to the 48% increase in operational scale.

EBITDA Margin

EBITDA (PBILDT) margin stood at 1.64% in FY25, a slight compression from 1.70% in FY24. Core profitability in absolute terms improved by 43% to INR 26.22 Cr (up from INR 18.37 Cr) because the company leveraged its fixed costs against a much larger trading volume of high-value Apple electronics.

Capital Expenditure

The company significantly strengthened its capital base through an Initial Public Offering (IPO) in February 2025, raising INR 34.23 Cr. This capital infusion increased the Net Worth to INR 75.41 Cr as of March 31, 2025, from INR 29.12 Cr in FY24, primarily to fund the working capital requirements of its expanding distribution network.

Credit Rating & Borrowing

HPTIL's credit rating was upgraded to 'CARE BBB-; Stable' for long-term facilities and 'CARE A3' for short-term facilities in October 2025. This upgrade from 'CARE BB+; Stable' reflects the improved capital structure. Interest coverage ratio improved to 2.49x in FY25 from 2.33x in FY24, providing a better buffer for debt servicing despite increased borrowing for inventory.

⚙️ Operational Drivers

Raw Materials

As a wholesale distributor, the 'raw materials' are finished electronic goods. Apple products (iPhones, iPads, AirPods, Apple Watches) represent 100% of the procurement cost. iPhones specifically represent 87% of the sales value, making the company's cost structure highly sensitive to Apple's regional pricing and supply chain allocations.

Import Sources

Products are sourced through Apple's distribution channels in India. The company operates as a zonal distributor across Gujarat, Karnataka, Maharashtra, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh, with primary procurement hubs supporting these regions.

Key Suppliers

The primary supplier relationship is with Apple India. The company also has group synergies through HV Connecting Infra (India) Private Limited, which handles distribution for Realme and Jio phones, though HPTIL itself is focused on the Apple brand.

Capacity Expansion

The company does not have manufacturing capacity but has expanded its distribution 'capacity' to approximately 500 distributors. It operates a head office in Surat and 5 branch offices in Baroda, Rajkot, Ahmedabad, Madhya Pradesh, and Chhattisgarh to manage the increased volume of 2,06,980 iPhone units.

Raw Material Costs

Cost of goods sold represents over 98% of revenue, typical for a high-volume, low-margin trading business. Procurement costs are influenced by Apple's global pricing strategy and India-specific import duties/taxes, which directly impact the 1.64% operating margin.

Manufacturing Efficiency

Efficiency is measured by inventory turnover rather than manufacturing metrics. Inventory turnover ratio was 15.65x in FY25, an improvement from 15.12x in FY24, indicating faster liquidation of stock and reduced holding risk.

Logistics & Distribution

Distribution is handled through a network of 500 regional distributors. The company's ability to scale TOI by 48% YoY suggests an efficient logistics framework capable of handling over 2 lakh iPhone units annually.

📈 Strategic Growth

Expected Growth Rate

44%

Growth Strategy

Growth is targeted through geographic expansion and increasing the volume of Apple product sales. The company achieved a 44% CAGR over the last five years by expanding into states like Uttar Pradesh and Chhattisgarh. The strategy involves leveraging the INR 34.23 Cr IPO proceeds to increase the equity base, allowing for higher working capital limits to support a target TOI of over INR 2,500 Cr.

Products & Services

Wholesale distribution of Apple iPhones, iPads, AirPods, Apple Watches, and mobile accessories.

Brand Portfolio

Apple (Primary brand distributed), Realme and Jio (distributed via group company HV Connecting Infra).

New Products/Services

The company is increasing the sales mix of non-iPhone Apple products (iPads, Watches, Accessories), which grew from 8% of the mix in FY24 to 13% in FY25, helping to diversify the revenue stream.

Market Expansion

Expansion is focused on deepening the network in Western Uttar Pradesh and Chhattisgarh. The company aims to increase its distributor count beyond the current 500 to capture the rising disposable income in Tier 2 and Tier 3 cities.

Market Share & Ranking

Apple's overall market share in India grew to ~7% in FY25 from 6.7% in FY24. HPTIL, as a zonal distributor, is a key participant in this growth, particularly in the Gujarat and MP regions.

Strategic Alliances

The company maintains a long-standing zonal distribution agreement with Apple. It also benefits from the promoter's experience in the telecom sector and group-level relationships with Realme and Jio.

🌍 External Factors

Industry Trends

The Indian consumer durable industry is growing due to technological innovation and rising income. Apple's exports from India rose 76% to INR 1.50 lakh Cr in FY25, signaling a shift toward India as a major hub, which benefits local distributors like HPTIL through better product availability.

Competitive Landscape

The industry is highly fragmented and competitive, featuring both domestic and foreign players. Competitors use aggressive pricing, bundled offers, and discounts to gain market share, which keeps HPTIL's margins below 2%.

Competitive Moat

The moat is built on the 'Apple' brand association and a deep distribution network of 500+ partners. This is sustainable because the high capital requirement for Apple distributorship acts as a barrier to entry, though the thin 1.64% operating margin makes the business model vulnerable to even minor operational inefficiencies.

Macro Economic Sensitivity

Highly sensitive to Indian disposable income levels. The 48% revenue growth in FY25 was directly attributed to the rise in spending power among Indian consumers for premium electronics.

Consumer Behavior

There is a clear shift toward premiumization, with iPhone sales volume growing 53% YoY, reflecting a consumer preference for high-end brands over budget alternatives.

Geopolitical Risks

Exposed to global supply chain disruptions (e.g., Russia-Ukraine conflict impacts) that could affect the availability of Apple components and finished goods, potentially leading to stock-outs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and SEBI regulations following its listing on the NSE Emerge platform in February 2025. It must also comply with electronic waste management and trade regulations specific to telecommunications.

Environmental Compliance

Not a major factor for a trading entity; however, the company spent INR 0.15 Cr on Corporate Social Responsibility (CSR) in FY25, representing 2% of its average net profits.

Taxation Policy Impact

The company operates under the GST regime, which management notes has stabilized and improved long-term business clarity. The effective tax rate is consistent with Indian corporate standards, resulting in a PAT of INR 12.58 Cr.

Legal Contingencies

The Secretarial Audit Report for FY25 confirmed compliance with the Companies Act, SCRA, and Depositories Act. No major pending litigation with significant financial values (High Court/Supreme Court) was disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the thin PAT margin of 0.79%. A 1% increase in operating costs or a 1% decrease in selling price could render the company loss-making. Technology obsolescence and inventory liquidation risks are also high.

Geographic Concentration Risk

74% of revenue is concentrated in just two states (Gujarat and Madhya Pradesh), making the company vulnerable to regional economic downturns or policy changes in those specific areas.

Third Party Dependencies

Extreme dependency on a single brand (Apple) for nearly 100% of revenue. Any change in Apple's zonal distribution strategy would be a terminal risk to the current business model.

Technology Obsolescence Risk

High risk; the consumer electronics market is characterized by rapid product cycles. Failure to liquidate inventory before new Apple launches would lead to significant financial losses.

Credit & Counterparty Risk

The company manages credit risk through a 14-day working capital cycle. Trade receivables turnover was 26.09x in FY25, indicating that the company successfully collects payments from its 500 distributors roughly every 14 days.