💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for FY25 was INR 949.24 Cr, representing a 7.65% decline from INR 1,027.91 Cr in FY24. Segment-wise capital employed as of September 2025 shows Manufacturing Kraft Paper at INR 182.02 Cr (86.7% of allocated assets), Trading at INR 55.54 Cr (26.5%), and Transportation & Port Service at INR 19.59 Cr (9.3%).

Geographic Revenue Split

The company is primarily based in Vapi, Gujarat, with operations centered in Western India. Specific percentage splits for other regions are not disclosed in available documents.

Profitability Margins

Standalone PAT margin improved from 1.26% in FY24 to 1.84% in FY25. Consolidated profit for the year ended March 31, 2025, was INR 18.42 Cr, a 33.9% increase from INR 13.75 Cr in FY24.

EBITDA Margin

Standalone EBITDA margin increased to 6.79% in FY25 from 5.00% in FY24, driven by improved operational efficiencies despite lower topline revenue. The company aims to sustain operating margins at approximately 8.0%.

Capital Expenditure

Property, plant, and equipment stood at INR 157.75 Cr as of March 31, 2025, up 7.7% from INR 146.39 Cr in FY24. Capital Work in Progress (CWIP) was INR 29.66 Cr, indicating ongoing investments in infrastructure.

Credit Rating & Borrowing

The company holds a short-term credit rating of IVR A2+ from Infomerics. Total standalone debt increased to INR 250.41 Cr in FY25 from INR 238.98 Cr in FY24, with an overall gearing ratio of 1.35x.

⚙️ Operational Drivers

Raw Materials

Key materials include Coal and Waste Paper, which are used for both trading and as primary inputs for the Kraft Paper manufacturing segment. Specific cost percentages for each are not disclosed.

Capacity Expansion

The company operates in four segments: logistics, trading, manufacturing of Kraft paper, and a newly added M&M dealership (added Dec 2023). Specific MTPA capacity for the paper plant is not disclosed.

Raw Material Costs

The company is exposed to price fluctuations in coal and waste paper. Procurement strategies involve leveraging extensive promoter experience of over 20 years to manage volatile market prices.

Manufacturing Efficiency

Manufacturing of Kraft Paper is the most asset-intensive segment with INR 182.02 Cr in capital employed as of September 2025. Specific utilization percentages are not disclosed.

Logistics & Distribution

The company operates its own transportation business, which supports its trading and manufacturing segments, though specific distribution costs as a percentage of revenue are not provided.

📈 Strategic Growth

Expected Growth Rate

8.00%

Growth Strategy

Growth is targeted through the stabilization of the new Mahindra & Mahindra (M&M) dealership segment added in December 2023 and improving operating margins to a sustainable 8.0%. The company relies on its diversified portfolio to maintain a stable topline despite segment-specific volatility.

Products & Services

Kraft Paper, traded Coal, traded Waste Paper, Logistics and Port Services, and Mahindra & Mahindra commercial/passenger vehicles via dealership.

Brand Portfolio

Maheshwari Logistics Limited (MLL) and Mahindra & Mahindra (as an authorized dealer).

New Products/Services

The M&M dealership business segment was added in December 2023 to diversify revenue streams beyond industrial trading and manufacturing.

Market Expansion

The company is expanding its footprint in the automobile dealership space while maintaining its core logistics and trading presence in Gujarat.

Strategic Alliances

Authorized dealership agreement with Mahindra & Mahindra (M&M).

🌍 External Factors

Industry Trends

The logistics and trading industries are seeing increased formalization. The coal industry remains highly regulated, while the paper industry is shifting toward recycled Kraft paper due to environmental preferences.

Competitive Landscape

Faces intense competition from unorganized players in the logistics sector and large established firms in the coal trading and paper manufacturing industries.

Competitive Moat

The company's moat is built on its diversified business model and 20+ years of promoter experience, which allows it to navigate commodity price cycles better than pure-play competitors.

Macro Economic Sensitivity

Highly sensitive to industrial production cycles and regulatory changes in the coal sector, which impact both the trading and logistics volumes.

Consumer Behavior

Shift toward e-commerce is driving demand for Kraft paper used in packaging, benefiting the manufacturing segment.

Geopolitical Risks

Global supply chain disruptions affecting coal and waste paper imports could impact raw material availability and pricing.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to highly regulated coal trading norms and environmental standards for paper manufacturing and vehicle emissions for the logistics fleet.

Taxation Policy Impact

The company follows Ind AS for tax reporting; current income tax and deferred tax are measured based on temporary differences between tax bases and carrying amounts.

Legal Contingencies

The company reports remeasurements of defined benefit plans and fair value investments in its equity statements, but specific pending litigation values are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Volatility in coal and waste paper prices poses a significant risk to trading and manufacturing margins. The success of the newly added M&M dealership is also a key uncertainty.

Geographic Concentration Risk

High concentration in Gujarat, particularly around the Vapi industrial cluster.

Third Party Dependencies

Dependent on coal suppliers and the regulatory environment governing coal distribution in India.

Technology Obsolescence Risk

The manufacturing segment faces risks if competitors adopt more advanced, lower-cost paper recycling technologies.

Credit & Counterparty Risk

The company maintains a moderate current ratio of 1.31x-1.37x, indicating a need for disciplined receivable management in its trading and logistics operations.