MAGSON - Magson Retail

📊 NSE: MAGSON 🏢 Trading 📅 Last Updated: 12/14/2025 9:25

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue from gourmet, frozen, and specialty food retail/distribution grew 2.2% YoY to INR 67.37 Cr (Rs. 6737.17 Lakhs) in FY25. However, on a consolidated basis, revenue decreased by 0.45% YoY to INR 67.37 Cr (Rs. 6737.17 Lakhs) compared to INR 67.67 Cr in the previous year.

Geographic Revenue Split

The company is headquartered in Ahmedabad, Gujarat, with operations focused on expanding its retail footprint in the region; specific % split by other regions is not disclosed in available documents.

Profitability Margins

Consolidated Net Profit Margin experienced a sharp decline from 4.15% in FY24 to 0.65% in FY25, driven by a net profit drop of 84.5% to INR 0.43 Cr (Rs. 43.50 Lakhs). Standalone Net Profit Margin fell from 4.26% to 0.85% YoY.

EBITDA Margin

Consolidated Profit Before Tax (PBT) margin fell from 5.66% to 0.89% YoY, as PBT dropped 84.2% from INR 3.82 Cr to INR 0.60 Cr (Rs. 60.32 Lakhs) due to operational challenges and cost pressures.

Capital Expenditure

The company has outstanding capital commitments of INR 7.00 Cr (Rs. 700 Lakhs) as of March 31, 2025, for the purchase of land for production/warehouse facilities and office premises.

Credit Rating & Borrowing

Capital commitments of INR 7.00 Cr are planned to be funded through a mix of internal accruals and external borrowings; specific interest rates and credit ratings are not disclosed.

⚙️ Operational Drivers

Raw Materials

Gourmet foods, frozen foods, and specialty foods represent 100% of the core inventory costs for the retail and distribution business.

Import Sources

Sourced from both local and international suppliers to ensure a steady supply of high-demand gourmet products.

Key Suppliers

The company maintains partnerships with various local and international suppliers; specific company names are not disclosed in the documents.

Capacity Expansion

Planned expansion includes the acquisition of land for a new production and warehouse facility funded by a INR 7.00 Cr commitment to enhance supply chain efficiency.

Raw Material Costs

Not explicitly disclosed as a % of revenue, but the company is focused on cost optimization to counter the 84.5% drop in consolidated net profit.

Manufacturing Efficiency

Not applicable as a primary metric for this retail/distribution model, though the company is investing in technology-driven customer retention.

Logistics & Distribution

The company is focused on improving delivery times and reducing costs through supply chain strengthening and local supplier partnerships.

📈 Strategic Growth

Growth Strategy

Growth will be achieved through expanding the retail footprint, enhancing supply chain efficiencies, investing in technology-driven customer retention, and launching new products to diversify revenue streams.

Products & Services

Gourmet foods, frozen foods, and specialty foods sold through retail and distribution channels.

Brand Portfolio

Magson

New Products/Services

The company is adopting a strategy of launching new products and services to mitigate business risk, though specific revenue contribution % for new launches is not disclosed.

Market Expansion

Focused on expanding its retail footprint and brand positioning; specific target regions beyond Gujarat are not detailed.

Strategic Alliances

Partnerships with international suppliers are being developed to ensure a steady supply of high-demand products.

🌍 External Factors

Industry Trends

The gourmet and specialty food industry is growing, with a shift toward technology-driven retail and optimized supply chains for freshness.

Competitive Landscape

Operates in a highly competitive market for gourmet and frozen foods, facing pressure from both organized retail and local distributors.

Competitive Moat

Moat is built on brand positioning in the niche gourmet segment and established international sourcing partnerships, which are sustainable due to high entry barriers in specialty food logistics.

Macro Economic Sensitivity

Sensitive to consumer discretionary spending and inflation in the gourmet food segment.

Consumer Behavior

Increasing consumer preference for specialty and frozen gourmet foods is driving the company's focus on brand positioning and product variety.

Geopolitical Risks

Trade barriers or supply chain disruptions with international suppliers could impact the availability of specialty gourmet products.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with the Companies Act 2013, SEBI (LODR) Regulations 2015, and SEBI (Prohibition of Insider Trading) Regulations 2015.

Legal Contingencies

The company reported material compliance with applicable statutory provisions; no specific pending court case values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

High business dependence on specific product lines and human resource attrition in a competitive market are key risks that could impact operational stability.

Geographic Concentration Risk

Operations are primarily concentrated in Gujarat, with the registered office in Ahmedabad.

Third Party Dependencies

Dependent on local and international suppliers for high-demand gourmet products; loss of key international partnerships would disrupt the supply chain.