MANORG - Mangalam Organic

📊 NSE: MANORG 🏢 Chemicals 📅 Last Updated: 12/14/2025 9:34

💰 Financial Performance

Revenue Growth by Segment

The retail segment, including FMCG products under 'CamPure' and 'Mangalam' brands, grew from 16% of revenue in fiscal 2023 to 38% in fiscal 2025. Total revenue grew 7.39% YoY to INR 530.01 Cr in FY25 and 14.30% YoY to INR 158.10 Cr in Q2 FY26.

Geographic Revenue Split

Not explicitly disclosed in available documents, though 60-70% of raw materials are imported from Indonesia, Brazil, Russia, and Europe, indicating significant international supply chain exposure.

Profitability Margins

Gross Profit margin improved to 48.40% in FY25 from 38.67% in FY24. PAT margin increased to 2.36% in FY25 from 0.85% in FY24. However, Q2 FY26 PAT margin was 2.02%, up 49 bps YoY from 1.53%.

EBITDA Margin

EBITDA margin was 11.05% in FY25, up 321 bps from 7.84% in FY24. In Q2 FY26, EBITDA margin plummeted to 0.18% from 8.92% in Q2 FY25, a decrease of 874 bps due to input cost volatility.

Capital Expenditure

Net cash flow from investing activities was INR 67.05 Cr in FY25, compared to INR 39.51 Cr in FY24, primarily driven by property, plant, and equipment additions of INR 265 Cr and capital work-in-progress of INR 30 Cr.

Credit Rating & Borrowing

CRISIL reaffirmed 'CRISIL BBB+/Stable' for long-term and 'CRISIL A2' for short-term facilities. Finance costs rose 37.6% to INR 21.48 Cr in FY25 from INR 15.61 Cr in FY24 due to increased debt for working capital.

⚙️ Operational Drivers

Raw Materials

Alpha pine and gum turpentine account for 60-70% of total raw material costs. Camphor prices also significantly impact realizations.

Import Sources

Raw materials are largely imported from Indonesia, Brazil, Russia, and Europe.

Capacity Expansion

The company is the largest domestic camphor manufacturer; future performance is supported by enhanced capacities, with capital work-in-progress increasing from INR 4 Cr in FY24 to INR 30 Cr in FY25.

Raw Material Costs

Cost of materials consumed was INR 312.47 Cr in FY25 (58.9% of revenue), up 20.7% from INR 258.93 Cr in FY24. Procurement strategies involve building inventory for the peak season (July to December).

Manufacturing Efficiency

EBITDA margin of 14.75% was achieved in Q1 FY26 through better absorption of fixed assets and stabilization of raw material prices.

Logistics & Distribution

Not explicitly disclosed; however, the company operates 8+ branches to manage its 100+ product portfolio.

📈 Strategic Growth

Expected Growth Rate

14.30%

Growth Strategy

Growth is driven by expanding the margin-remunerative retail segment (Mangalam and CamPure brands), ramping up enhanced manufacturing capacities, and diversifying into terpene and rosin derivatives.

Products & Services

Camphor, terpene derivatives, rosin derivatives, and FMCG products including camphor cones, sticks, and religious puja products.

Brand Portfolio

Mangalam, CamPure.

New Products/Services

The company offers 100+ products; recent focus is on expanding the retail FMCG portfolio which now contributes 38% of revenue.

Market Expansion

Expanding retail presence through 8+ branches and digital platforms like Amazon, Flipkart, and BigBasket.

Market Share & Ranking

One of the largest players in the domestic camphor manufacturing business with the highest capacity among peers.

🌍 External Factors

Industry Trends

The industry is shifting toward branded retail camphor products; Mangalam is positioning itself by increasing its retail revenue share from 16% to 38% in two years.

Competitive Landscape

Intense competition in the camphor segment constrains scalability and exerts pressure on profitability margins.

Competitive Moat

Moat is based on being the largest domestic producer with 40+ years of experience and strong brand equity in 'Mangalam' and 'CamPure', though it is challenged by raw material price volatility.