KATARIA - Kataria

📊 NSE: KATARIA 🏢 Steel - Medium / Small 📅 Last Updated: 12/14/2025 8:50

💰 Financial Performance

Revenue Growth by Segment

For H1 FY26, the Wire segment generated INR 118.22 Cr, Cable & Conductor INR 46.39 Cr, and PTS INR 5.76 Cr. Total revenue for FY25 grew 3.38% YoY to INR 350.61 Cr from INR 339.13 Cr.

Geographic Revenue Split

Exports contributed 0.92% of total revenue from operations in FY25, amounting to approximately INR 3.22 Cr.

Profitability Margins

PAT margin for FY25 was 3.12% (INR 10.96 Cr). Operating profit margin declined from 8% in FY24 to 6% in FY25 due to higher operating costs and lower margin realization.

EBITDA Margin

EBITDA margin was 6.18% in FY25, down from 8.57% in FY24. Absolute EBITDA fell 25.38% YoY to INR 21.68 Cr from INR 29.06 Cr.

Capital Expenditure

The company utilized INR 1.75 Cr from IPO proceeds for capital expenditure on plant and machinery by September 30, 2025.

Credit Rating & Borrowing

Finance costs were reduced by 66.2% YoY to INR 2.99 Cr in FY25 from INR 8.85 Cr, following the repayment of INR 46.00 Cr in debt using IPO proceeds.

⚙️ Operational Drivers

Raw Materials

The company primarily utilizes steel for the production of steel wires and strands; specific percentage of total cost is not disclosed.

Capacity Expansion

Current installed capacity is not disclosed; however, INR 1.75 Cr was invested in new plant and machinery via IPO proceeds to boost operational output.

Raw Material Costs

Total expenses before depreciation and finance costs were INR 330.32 Cr in FY25, representing 94.2% of revenue, up from 92.1% in FY24.

Manufacturing Efficiency

Inventory turnover ratio was 10.47 in FY25, indicating the frequency of inventory replacement.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth will be driven by penetrating existing business segments with technically advanced products, identifying new markets for cost-effective penetration, and focusing on increasing export revenue from the current 0.92% level.

Products & Services

Steel wires, strands, cables, conductors, and related accessories.

Brand Portfolio

TENASYO.

New Products/Services

Focus on technically advanced products within the existing wire and cable segments to gain a competitive edge.

Market Expansion

Strategic focus on increasing exports and expanding geographic presence, which adds complexity regarding location-specific safety laws.

🌍 External Factors

Industry Trends

The industry is shifting toward technically advanced steel products. Kataria aims to position itself as a foremost producer of steel wires and strands through technology investment.

Competitive Landscape

The company operates in a competitive market for steel wires and cables, focusing on cost-effective manufacturing to maintain an edge.

Competitive Moat

Moat is built on the 'TENASYO' brand, ISO 9001:2015 certification, and a significantly deleveraged balance sheet (Debt-Equity 0.16) following the IPO.

Macro Economic Sensitivity

Sensitivity to steel industry cycles and general infrastructure spending in India.

Geopolitical Risks

Geographic expansion into new regions introduces risks related to location-specific safety laws and regulatory requirements.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to health and safety regulations, workforce safety standards, and location-specific safety laws in the steel industry.

Taxation Policy Impact

Current tax for FY25 was INR 3.50 Cr, with a short provision for earlier years of INR 0.59 Cr.

Legal Contingencies

The company has maintained proper records of property title deeds and is compliant with director remuneration limits under Section 197 of the Companies Act.