💰 Financial Performance

Revenue Growth by Segment

Standalone total income grew 45.33% YoY to INR 92.77 Cr in H1 FY26. Domestic primary packaging contributed INR 4.26 Cr, representing approximately 5% of total revenue.

Geographic Revenue Split

The company operates in India (Chennai and Sivakasi) and has expanded globally with subsidiaries in UAE and Singapore. Specific percentage split by region is not disclosed.

Profitability Margins

Net Profit Margin was 6.66% in H1 FY26, compared to 8.53% in H1 FY25. PAT stood at INR 6.18 Cr, marking a 13.51% YoY increase.

EBITDA Margin

EBITDA margin reached 16% in H1 FY26, with EBITDA surging 57.92% YoY to INR 15.08 Cr. Long-term sustainable EBITDA margin is targeted at 13-15%.

Capital Expenditure

The company is executing a cold rolling complex in Chennai. It is also evaluating a potential INR 50 Cr investment in Superalloys.

⚙️ Operational Drivers

Raw Materials

Medium high carbon steel is the primary raw material used for manufacturing steel strapping. Specific cost percentages are not disclosed.

Key Suppliers

Vedanta is identified as a major partner and supplier in the context of packaging contracts and raw material interactions.

Capacity Expansion

Manufacturing capacity was boosted to 30,000 MT P.A. in FY25, up from 18,000 MT P.A. A new cold rolling complex is under execution in Chennai.

Raw Material Costs

Raw material costs are managed through backward integration into cold rolling, which is expected to reduce inventory cycles and improve procurement efficiency.

Manufacturing Efficiency

The company utilizes specialized heat treatment processes for high-carbon steel. Capacity was expanded by 66% to 30,000 MT to improve operational scale.

📈 Strategic Growth

Expected Growth Rate

45%

Growth Strategy

Growth will be achieved by transitioning from a strapping supplier to a special steel manufacturer via the Chennai cold rolling complex, expanding the Total Addressable Market (TAM). The company is also scaling its packaging services division, which has an order book exceeding INR 180 Cr and multi-year contracts with giants like Vedanta and Shyam Metalics.

Products & Services

Steel Strapping, Primary Packaging Materials, Packaging Services, and traded goods including Tarpaulins, Sponge Iron, Billets, and Copper wire.

Brand Portfolio

Krishca

New Products/Services

Domestic primary packaging products contributed INR 4.26 Cr (5% of revenue) in H1 FY26. The company is also moving into special steel manufacturing.

Market Expansion

Global expansion is focused on the Middle East and Southeast Asia through subsidiaries in UAE and Singapore.

Strategic Alliances

Multi-year packaging contracts with Vedanta, Shyam Metalics, and EFL Steel.

🌍 External Factors

Industry Trends

The industry is shifting toward solution-driven, service-led models. Krishca's 45.33% H1 growth reflects strong demand for specialized industrial packaging.

Competitive Landscape

Competitors include large-scale Chinese exporters and domestic industrial packaging providers.

Competitive Moat

Moat is sustained by specialized engineering processes for high-carbon steel and high switching costs associated with multi-year, integrated packaging service contracts.

Macro Economic Sensitivity

Highly sensitive to the growth and production cycles of the domestic and global steel and metals industry.

Consumer Behavior

Industrial clients are increasingly preferring long-term, service-based packaging solutions over simple commodity procurement.

Geopolitical Risks

Trade dynamics and aggressive pricing from Chinese steel exporters pose a risk to international margins.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with industrial manufacturing standards and pollution control norms for steel processing units.

Environmental Compliance

Not disclosed in INR; company maintains standard risk management frameworks.

Taxation Policy Impact

The effective tax rate for H1 FY26 was approximately 27.7%, with a tax expense of INR 2.37 Cr.

Legal Contingencies

The company reported no pending litigations as of March 31, 2025, resulting in a value of INR 0.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices and Chinese pricing competition could impact EBITDA margins by an estimated 2-3%.

Geographic Concentration Risk

Primary manufacturing is concentrated in Tamil Nadu, India, with growing exposure to the Middle East.

Third Party Dependencies

Significant dependency on a few large-scale metal producers for both service revenue and supply chain stability.

Technology Obsolescence Risk

Mitigated by investing in a new cold rolling complex to produce higher-value, thinner steel products.

Credit & Counterparty Risk

Receivables are primarily from large corporate 'giants,' requiring disciplined working capital management.