MAZDA - Mazda

📊 NSE: MAZDA 🏢 Engineering 📅 Last Updated: 12/14/2025 9:42

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations for H1 FY26 reached INR 100.47 Cr, an 8.07% increase from INR 92.96 Cr in H1 FY25. The Engineering Division grew 11.78% YoY to INR 84.92 Cr, while the Food Division revenue declined 7.85% YoY to INR 15.66 Cr.

Geographic Revenue Split

The company is a net foreign exchange earner with export earnings of INR 51.86 Cr in FY 2024-25, representing approximately 26.8% of total annual revenue, while domestic sales constitute the remaining 73.2%.

Profitability Margins

Profit Before Tax (PBT) for H1 FY26 stood at INR 16.32 Cr, up 4.72% YoY from INR 15.58 Cr. However, PBT margins slightly compressed to 16.24% in H1 FY26 from 16.76% in H1 FY25 due to higher operational costs.

EBITDA Margin

Operating profit before working capital changes for H1 FY26 was INR 14.06 Cr, reflecting a 14% margin on revenue, an improvement from the 11.8% margin (INR 10.96 Cr) recorded in H1 FY25.

Capital Expenditure

The company invested INR 5.65 Cr in Property, Plant, and Equipment during H1 FY26 to support capacity expansion and modernization of engineering facilities.

Credit Rating & Borrowing

Finance costs for H1 FY26 increased by 82% YoY to INR 0.41 Cr from INR 0.22 Cr, though absolute borrowing remains low relative to the total equity base of INR 287.21 Cr.

⚙️ Operational Drivers

Raw Materials

Steel is identified as the primary raw material for the Engineering Division, with price fluctuations directly impacting the cost of manufacturing vacuum systems and ejectors.

Capacity Expansion

Current single-shift capacity is valued at INR 60 Cr per annum. The company is adding shifts and has achieved a turnover target of INR 30 Cr for specific product lines as of March 2024, aiming for further utilization in FY 2025.

Raw Material Costs

Raw material costs are sensitive to steel price volatility; the company utilizes cost optimization and robust sourcing strategies to mitigate the impact of global commodity price shifts.

Manufacturing Efficiency

The company is focusing on automation and precision engineering to enhance operational efficiency and maintain global competitiveness in the vacuum systems market.

📈 Strategic Growth

Expected Growth Rate

20-25%

Growth Strategy

Growth will be driven by the launch of four new products in the Engineering segment and entry into the high-demand ready-to-eat segment within the Food Division. The company is also leveraging a strong domestic order book of INR 70 Cr.

Products & Services

Engineering products include vacuum systems, steam jet ejectors, and liquid ring vacuum pumps. Food products include fruit powders, vegetable powders, and ready-to-eat meals.

Brand Portfolio

Mazda Limited.

New Products/Services

Four new engineering products are expected to contribute a 20-25% boost to total growth; the Food Division has recently launched a ready-to-eat product line.

Market Expansion

The company is targeting expansion in the engineering sector by capitalizing on increased government capital expenditure and industrial automation trends in India.

🌍 External Factors

Industry Trends

The engineering sector is seeing a shift toward automation and precision, while the food industry is moving toward health-conscious and convenient ready-to-eat options.

Competitive Landscape

The company competes in the precision engineering and processed food markets, facing competition from both domestic players and global engineering firms.

Competitive Moat

Competitive advantage is derived from technical expertise in specialized vacuum systems and a diversified business model (Engineering and Food) that provides a hedge against sector-specific downturns.

Macro Economic Sensitivity

Highly sensitive to industrial capital expenditure cycles and government infrastructure spending, which drives demand for engineering vacuum systems.

Consumer Behavior

Shifting consumer behavior toward convenient, quality food products is driving the expansion of the Food Division's product line.

Geopolitical Risks

Global economic volatility and trade disruptions pose risks to the export segment, which accounts for over a quarter of total revenue.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act 2013, SEBI Listing Regulations, and food safety standards for the Food Division.

Environmental Compliance

The company follows a Triple Bottom Line approach focusing on environmental stewardship and sustainability as part of its corporate philosophy.

Taxation Policy Impact

The company paid INR 3.82 Cr in direct taxes during H1 FY26, representing an effective tax rate of approximately 23.4% of PBT.

Legal Contingencies

The company acknowledges risks from litigation and industrial relations in its MDA, though specific case values for pending court matters are not detailed in the provided financial extracts.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 52.87% increase in inventory, which could signal either a massive upcoming sales surge or potential overstocking that could further strain cash flows.