💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 24.07% YoY to INR 2,281.48 Cr in FY25 from INR 1,838.80 Cr in FY24. Standalone revenue increased 25.37% to INR 2,092.53 Cr. The growth is driven by increased scale in the agro-commodity trading and manufacturing segments.

Geographic Revenue Split

Indian operations contributed INR 1,977.82 Cr (approx. 86.7% of total revenue), growing 27.2% YoY. Foreign operations contributed INR 101.87 Cr (approx. 4.5% of total revenue), growing 8.9% YoY from INR 93.51 Cr.

Profitability Margins

The business operates on a high-volume, low-margin model. Gross profit margins for agro-based manufacturing range between 2% to 5%. Net Profit Ratio slightly declined to 1.04% in FY25 from 1.13% in FY24 due to increased tax expenses and finance costs.

EBITDA Margin

Consolidated EBITDA grew 33.39% to INR 65.76 Cr in FY25. Operating margins improved to 2.58% in FY25 from 2.48% in FY24, reflecting better absorption of fixed costs through higher operational scale.

Capital Expenditure

Historical CAPEX included payments for property, plant, and equipment of INR 0.09 Cr in FY25. The company is currently executing a project for Cold-pressed pharma grade Castor oil to enter higher-margin B2B and B2C segments.

Credit Rating & Borrowing

Infomerics Ratings revised the outlook to 'Positive' from 'Stable' and reaffirmed the long-term rating at 'IVR BBB'. Short-term rating is 'IVR A3+'. Finance costs for FY25 were INR 29.71 Cr on a total debt that resulted in a gearing of 1.37x.

⚙️ Operational Drivers

Raw Materials

Castor seeds are the primary raw material, accounting for the bulk of the cost of goods sold (COGS). The availability and pricing of these seeds are the most significant determinants of the company's cost structure.

Import Sources

Primarily sourced from domestic markets in India, specifically Gujarat, which is a major castor seed producing hub.

Key Suppliers

Not disclosed in available documents; however, the company engages with both organized and unorganized market players for procurement.

Capacity Expansion

Current capacity not explicitly stated in MT; however, the company is expanding into 'Cold-pressed pharma grade Castor oil' production to diversify its product mix and improve margin retention.

Raw Material Costs

Raw material costs are highly volatile due to agro-climatic risks. The company faces thin margins (2.99-3.10% for specific agro-products) because it cannot always pass on sudden seed price spikes to customers in a competitive market.

Manufacturing Efficiency

Return on Capital Employed (ROCE) improved to 15.58% in FY25 from 14.17% in FY24, indicating better efficiency in utilizing capital for generating operating profits.

📈 Strategic Growth

Expected Growth Rate

21%

Growth Strategy

Growth is targeted through a shift from pure commodity trading to value-added manufacturing, specifically 'Cold-pressed pharma grade Castor oil' for B2B and B2C segments. The company recently incorporated three wholly-owned subsidiaries, including Mangalam Oleo Speciality Products Private Limited in November 2025, to focus on specialized product lines.

Products & Services

Castor oil (various grades), Cold-pressed pharma grade Castor oil, and other agro-based commodities.

Brand Portfolio

MGEL (Trusted Services Since 1942).

New Products/Services

Cold-pressed pharma grade Castor oil for B2C and B2B markets; expected to provide higher margins than standard industrial castor oil.

Market Expansion

Expansion into Singapore via Mangalam Global (Singapore) Pte. Ltd. and the incorporation of new domestic subsidiaries to handle specialized oleo products.

🌍 External Factors

Industry Trends

The industry is shifting toward specialized, pharma-grade agro-derivatives. MGEL is positioning itself by moving into the B2C segment and cold-pressed oils to escape the 'high-volume low-margin' trap of industrial commodities.

Competitive Landscape

Faces intense competition from both organized and unorganized players, which constrains margin retention and necessitates large-scale operations for financial viability.

Competitive Moat

Moat is based on the 'Mangalam Group' brand (since 1942) and experienced management. However, the moat is narrow due to intense competition and the commodity nature of the primary products.

Macro Economic Sensitivity

Highly sensitive to agricultural output and monsoon cycles. Global economic growth (projected at 2.8% for 2025) and US tariff measures impact export demand for castor-based derivatives.

Consumer Behavior

Increasing demand for pharma-grade and natural oils in the B2C segment is driving the company's shift toward cold-pressed products.

Geopolitical Risks

Trade barriers and new tariff measures by the United States and its trading partners are identified as risks that could negatively impact global economic activity and MGEL's export volumes.

⚖️ Regulatory & Governance

Industry Regulations

Subject to agro-industry regulations and export-import policies. Compliance with growing regulatory norms is a continuing requirement that can impact the timeline for obtaining necessary approvals for new projects.

Environmental Compliance

The company emphasizes maintaining high safety standards across factories and implementing best practices for energy conservation.

Taxation Policy Impact

Effective tax expense for FY25 was INR 8.34 Cr (Consolidated). The company realized a GST refund as an exceptional item in FY25.

Legal Contingencies

Not disclosed in available documents; however, the company maintains internal control systems to ensure transactions are recorded in conformity with established accounting principles.

⚠️ Risk Analysis

Key Uncertainties

Agro-climatic risk (monsoon) and raw material price volatility are the primary uncertainties, with the potential to swing gross margins by 1-2%, which is significant given the 2.58% operating margin.

Geographic Concentration Risk

86.7% of revenue is concentrated in Indian operations, making the company highly dependent on the domestic agricultural economy.

Third Party Dependencies

High dependency on the castor seed farming community and local aggregators for raw material supply.

Technology Obsolescence Risk

Low risk of obsolescence for core products, but the company must upgrade manufacturing processes to meet 'pharma-grade' standards for its new product lines.

Credit & Counterparty Risk

Liquidity is adequate with 29% unutilized working capital limits (INR 170 Cr limit), and the company generates net cash accruals of INR 34.11 Cr to support debt obligations.