💰 Financial Performance

Revenue Growth by Segment

The Granite & Stone Division revenue decreased by 14.91% YoY to INR 14.07 Cr from INR 16.54 Cr. The Power Generation Unit grew by 63.31% YoY to INR 1.15 Cr from INR 0.71 Cr. The Realty Division reported zero revenue for the period ended September 30, 2025.

Geographic Revenue Split

Not disclosed in available documents; however, the company reported a Net Gain on Foreign Currency of INR 0.87 Cr for the period ended September 30, 2025, up 112.5% from INR 0.41 Cr YoY, indicating significant export operations.

Profitability Margins

Standalone Net Profit Margin for the period ended September 30, 2025, was 1.29% (INR 0.19 Cr profit on INR 14.87 Cr revenue), a sharp decline from 2.95% YoY. Consolidated results showed a net loss of INR 1.08 Cr, worsening by 188.97% compared to a loss of INR 0.37 Cr in the previous year's period.

EBITDA Margin

Standalone EBITDA margin stood at approximately 14.26% for the period ended September 30, 2025 (calculated as PBT of INR 0.24 Cr + Interest of INR 0.54 Cr + Depreciation of INR 1.34 Cr on INR 14.87 Cr revenue). This reflects core operational profitability despite the decline in net profit.

Capital Expenditure

Consolidated Property, Plant and Equipment (PPE) stood at INR 24.02 Cr as of September 30, 2025, down 4.98% from INR 25.27 Cr as of March 31, 2025. Capital work-in-progress remained stable at INR 2.83 Cr.

Credit Rating & Borrowing

Not disclosed in available documents. However, the company incurred standalone interest expenses of INR 0.54 Cr for the half-year on total borrowings of INR 9.97 Cr, suggesting an approximate annualized borrowing cost of 10.8%.

⚙️ Operational Drivers

Raw Materials

Granite blocks and stone raw materials represent the primary input, with 'Cost of materials consumed' totaling INR 5.13 Cr, which is 34.5% of standalone revenue for the period ended September 30, 2025.

Raw Material Costs

Cost of materials consumed decreased by 16.88% YoY to INR 5.13 Cr from INR 6.17 Cr, tracking the 10.07% decline in standalone revenue. This suggests a slight improvement in material efficiency or lower procurement costs per unit.

Manufacturing Efficiency

Depreciation and Amortization for the period was INR 1.34 Cr. The company reported a profit on the sale/write-off of fixed assets of INR 0.29 Cr, suggesting active management of the asset base.

📈 Strategic Growth

Growth Strategy

The company is focusing on its Granite & Stone division while leveraging its Power Generation unit. Strategic focus appears to be on managing foreign currency gains (INR 0.87 Cr) and interest income (INR 1.57 Cr) to support the bottom line during periods of lower operational revenue.

Products & Services

Granite slabs, stone products, and electricity (via the Power Generation Unit).

Brand Portfolio

Madhav Marbles and Granites.

Strategic Alliances

The company has investments in Joint Ventures, contributing a share of profit of INR 0.46 Cr to the consolidated results for the period ended September 30, 2025.

🌍 External Factors

Industry Trends

The industry is shifting toward integrated stone processing and renewable energy adoption. Madhav's 63.31% growth in its power unit aligns with the trend of industrial firms diversifying into green energy.

Competitive Landscape

The company operates in a highly fragmented granite and marble industry with significant competition from both domestic and international stone processors.

Competitive Moat

The company's moat is based on its established presence in the Udaipur stone cluster and its diversified revenue from power generation. However, the 14.91% drop in its core segment suggests the moat is currently under pressure from competition or market slowdowns.

Macro Economic Sensitivity

The business is sensitive to the global construction and real estate cycles, which drive demand for granite and stone products.

Consumer Behavior

Shifts in architectural preferences toward engineered stone or large-format porcelain tiles could reduce demand for natural granite slabs.

Geopolitical Risks

As an exporter of granite, the company is subject to international trade barriers and shipping costs, which can impact the competitiveness of its stone products in global markets.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to mining regulations for stone sourcing and environmental norms for stone processing and power generation units.

Taxation Policy Impact

The company's standalone current tax expense for the period was INR 0.05 Cr on a PBT of INR 0.24 Cr, representing an effective tax rate of approximately 20.8%.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the recovery of the Granite & Stone division, which saw a 14.91% revenue decline. Continued losses at the consolidated level (INR 1.08 Cr) pose a risk to capital reserves.

Geographic Concentration Risk

The company is headquartered in Udaipur, Rajasthan, indicating a high concentration of manufacturing assets in that region.

Third Party Dependencies

The company relies on its Joint Ventures for a portion of its consolidated income (INR 0.46 Cr contribution this period).

Technology Obsolescence Risk

The company wrote off software and bad debts totaling INR 0.05 Cr during the period, indicating periodic updates to its digital and financial infrastructure.

Credit & Counterparty Risk

Consolidated non-current trade receivables increased to INR 2.07 Cr from INR 1.45 Cr (a 42.7% increase), suggesting a potential slowdown in collections from long-term clients.