💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew by 17.59% YoY, reaching INR 2,529.83 Cr in FY2025 compared to INR 2,151.38 Cr in FY2024. Standalone revenue increased by 20.33% to INR 1,210.96 Cr. The growth is driven by higher volumes in the castor oil and derivatives segments, though the castor oil segment remains a high-revenue, low-margin business.

Geographic Revenue Split

Not explicitly disclosed in percentages by region, but the company is a major exporter, with total Indian castor oil exports rising 6.19% from 6.46 Lakh Metric Tons in FY2024 to 6.86 Lakh Metric Tons in FY2025. The company faces a significant 50% tariff on exports to the US, which is a key monitorable for future geographic revenue distribution.

Profitability Margins

Consolidated PAT/OI (Profit After Tax to Operating Income) improved from 1.9% in FY2023 to 2.6% in FY2024. Consolidated Profit before Finance cost and Tax stood at INR 91.05 Cr in FY2025, a 10.32% increase from INR 82.53 Cr in FY2024. Margins are constrained by the high revenue share of the low-margin castor oil segment.

EBITDA Margin

Consolidated OPBDIT/OI margin was 4.5% in FY2024, up from 3.5% in FY2023. This 100 bps improvement reflects better operational efficiencies and a shift toward higher-margin derivatives, although overall margins remain moderate due to commodity price volatility.

Capital Expenditure

The company is undertaking greenfield capex to expand the higher-margin castor derivative segment. While specific INR Cr for the new project is not detailed, maintenance capex is expected to be funded through internal accruals. Total depreciation and amortisation expenses rose 22.2% to INR 19.41 Cr in FY2025, indicating increased asset base.

Credit Rating & Borrowing

The company maintains an [ICRA]A- (Stable) rating for long-term debt and [ICRA]A2+ for short-term debt as of September 2025. Interest coverage ratio was healthy at 10.3x in FY2024. Finance costs increased significantly by 99.6% to INR 18.92 Cr in FY2025 from INR 9.48 Cr in FY2024, reflecting higher borrowing or utilization of limits.

⚙️ Operational Drivers

Raw Materials

Castor seeds and Castor oil are the primary raw materials, accounting for the bulk of the cost of goods sold. The business is commoditised, making it highly sensitive to the price fluctuations of these agricultural inputs.

Import Sources

Primarily sourced from Gujarat and Rajasthan, India, which are the global hubs for castor seed production. The company monitors crop estimates closely to manage procurement.

Key Suppliers

Not disclosed in available documents; however, procurement is backed by orders and hedging to mitigate price volatility.

Capacity Expansion

Ongoing greenfield capex is focused on increasing the production capacity of castor oil-based derivatives to improve the product mix toward higher-margin offerings.

Raw Material Costs

Raw material costs are a major component of the revenue, though specific % of revenue is not provided. The company has shifted to an inventory holding policy where procurement is backed by specific orders to mitigate the risk of price volatility in castor seeds.

Manufacturing Efficiency

The company focuses on reducing wastages and improving recoveries through selection of efficient processing routes. Specific capacity utilization % was not disclosed.

Logistics & Distribution

Not disclosed as a specific % of revenue, but the company operates through subsidiaries like Ihsedu Itoh Green Chemicals Marketing for distribution.

📈 Strategic Growth

Expected Growth Rate

17.60%

Growth Strategy

Growth is targeted through greenfield expansion in the high-margin castor derivatives segment and strategic joint ventures, such as Vithal Castor Polyols Private Limited (VCPPL) with Mitsui Chemicals (50:40:10 JV). The company aims to leverage its leadership position and 50+ years of promoter experience to increase market share in specialized chemical applications.

Products & Services

Castor oil, castor oil-based derivatives, sebacic acid, 12-HSA, and polyols used in polymers, plastics, and rubber industries.

Brand Portfolio

Jayant Agro-Organics, Ihsedu.

New Products/Services

The company is focusing on green chemicals and castor-based polyols through its JV VCPPL to cater to the growing demand for sustainable hydrocarbon substitutes.

Market Expansion

Expansion is focused on increasing the share of derivatives in the total product mix and strengthening global tie-ups with reputed chemical companies for volume offtake visibility.

Market Share & Ranking

The Jayant Group holds a leadership position in the Indian castor oil and castor oil-based derivatives business.

Strategic Alliances

Key JV: Vithal Castor Polyols Private Limited (VCPPL) with Mitsui Chemicals and Itoh Oil Chemicals Co. Ltd (IOCCL).

🌍 External Factors

Industry Trends

The industry is shifting toward 'green' chemicals as substitutes for hydrocarbon-based products. While this provides a long-term tailwind for castor derivatives, the industry currently faces pressure from volatile edible oil prices and regulatory scrutiny on end-user industries like plastics.

Competitive Landscape

Faces competition from other Indian castor processors and global producers of crude-based chemical substitutes.

Competitive Moat

The company's moat is built on 50+ years of promoter experience, a leadership position in a niche agricultural commodity, and strategic JVs with global players like Mitsui Chemicals. This is sustainable due to the high technical expertise required for derivatives.

Macro Economic Sensitivity

Highly sensitive to global commodity price cycles and agricultural output (castor crop yields).

Consumer Behavior

Increasing preference for bio-based and sustainable chemicals is driving demand for the company's derivative products.

Geopolitical Risks

The 50% tariff imposed by the US administration on Indian exports is the primary geopolitical risk, potentially impacting both volume and profitability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by pollution control norms and export-import regulations. The 50% US tariff is a critical regulatory barrier currently affecting the industry.

Environmental Compliance

The company focuses on reducing environmental discharges. Non-compliance risks could lead to local community protests or capacity expansion constraints.

Taxation Policy Impact

The company is subject to standard Indian corporate tax rates; however, it faces ongoing disputes regarding service tax, excise, and customs.

Legal Contingencies

The company reports a contingent liability of INR 17.68 Cr as of March 31, 2025, related to service tax, excise, and customs disputes. The Board currently deems no provisioning necessary.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the impact of the 50% US tariff on export volumes. Additionally, the volatility of castor seed prices can impact profitability by +/- 5-10% depending on the crop season.

Geographic Concentration Risk

High dependence on export markets, with the US being a critical but currently high-risk region due to tariffs.

Third Party Dependencies

Moderate dependency on the castor farming community in Gujarat and Rajasthan for raw material supply.

Technology Obsolescence Risk

Low risk of obsolescence, but the company must continue to innovate in derivative applications to compete with evolving crude-based alternatives.

Credit & Counterparty Risk

Liquidity is adequate with INR 70.2 Cr fund flow from operations and moderate utilization (24.1%) of its INR 754.1 Cr sanctioned working capital limits.