💰 Financial Performance

Revenue Growth by Segment

Total operating income (TOI) for FY25 was INR 746.69 Cr, a 22.8% decline from INR 968.04 Cr in FY24, primarily due to a strategic shift away from low-margin OEM business. By segment, Air Conditioners grew 55% YoY, and LED/Panel segments grew 11% YoY. Branded sales contribution increased significantly to 79% of total revenue in FY25 compared to 51% in FY24.

Geographic Revenue Split

Not disclosed in available documents, though the company maintains a wide domestic distribution network supported by warehouses across India.

Profitability Margins

Gross and operating performance improved as the company focused on high-margin branded segments. Loss before tax and after exceptional items for FY25 was INR 2.30 Cr (0.30% of total income) compared to a loss of INR 62.21 Cr (6.38% of total income) in FY24. PAT margins remain negative but are narrowing.

EBITDA Margin

EBITDA margin turned positive to 1.09% in FY25 (absolute EBITDA of INR 8.14 Cr) from a negative margin in FY24. For 9MFY25, the PBILDT margin was 1.57% (INR 8.58 Cr) compared to 0.05% in 9MFY24.

Capital Expenditure

The company infused INR 199.50 Cr in 2025 through a rights issue (INR 50 Cr in August) and a preferential issue (INR 149.50 Cr in October). These funds were utilized to reduce creditors, working capital borrowings, and promoter loans of ~INR 19 Cr, rather than for new greenfield CAPEX.

Credit Rating & Borrowing

Long-term bank facilities are rated CARE BB-; Stable (reaffirmed April 2025). Short-term facilities are rated CARE A4. Interest coverage remained weak at 0.74x during 9MFY25, though the capital structure improved following the INR 199.50 Cr equity infusion.

⚙️ Operational Drivers

Raw Materials

Key raw materials include steel, aluminum, plastics, and electronic components. These are critical as commodity price volatility directly impacts the margins of AC and TV production.

Import Sources

Major raw materials and components are imported from China and Hong Kong, exposing the company to supply chain disruptions and forex volatility.

Capacity Expansion

Not disclosed in available documents; however, the company is shifting focus from OEM manufacturing to its own branded 'Onida' production to optimize existing capacity for higher margins.

Raw Material Costs

Raw material costs increased in Q3FY25, specifically for Air Conditioners, which contributed to an operating loss of INR 2 Cr in that quarter. Procurement is managed through a mix of imports and domestic sourcing.

Manufacturing Efficiency

Average fund-based working capital utilization was moderate at ~79% for the 12 months ended August 2025. Efficiency is challenged by the need to maintain a large basket of SKUs across the country.

Logistics & Distribution

Receivables cycle is approximately 45 days, with the company extending 1-2 months of credit to its distributors.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

The company aims to reach a revenue range of INR 1,000 - 1,200 Cr over the next 2-3 years. This will be achieved by increasing the branded business share to 75%+ of total sales, leveraging the 'Onida' brand equity, and expanding the product portfolio in the AC and Washing Machine segments.

Products & Services

Televisions (LED/Panel), Air Conditioners, and Washing Machines.

Brand Portfolio

Onida

New Products/Services

Focusing on 'budget-conscious to mid-range' consumers with updated features in ACs and Washing Machines to compete with global brands.

Market Expansion

The company is focusing on strengthening its domestic presence through its established dealer/distributor network and national warehouse footprint.

Market Share & Ranking

Not disclosed in available documents, but operates in a highly fragmented industry dominated by large MNCs.

🌍 External Factors

Industry Trends

The industry is shifting toward energy-efficient products due to stricter regulatory norms. MIRC is positioning itself by focusing on its branded segment which allows for better absorption of compliance costs.

Competitive Landscape

Highly competitive and fragmented, dominated by large MNCs with global presence and regional players using aggressive pricing.

Competitive Moat

The primary moat is the 'Onida' brand, which has over four decades of recognition in India. However, this is under constant threat from the superior financial flexibility and R&D of global MNCs.

Macro Economic Sensitivity

Discretionary spending is highly sensitive to economic slowdowns and high interest rates, which can lead consumers to defer purchases of TVs and ACs.

Consumer Behavior

Shift toward energy-efficient appliances and mid-range branded products over unbranded or OEM-manufactured goods.

Geopolitical Risks

Heavy reliance on China and Hong Kong for component sourcing makes the company vulnerable to changes in import duties or trade restrictions.

⚖️ Regulatory & Governance

Industry Regulations

Stricter energy-efficiency norms and environmental regulations regarding refrigerants and electronic waste add to the cost of compliance and manufacturing standards.

Environmental Compliance

The company faced a retrospective E-waste compliance charge of INR 10 Cr in FY25, which significantly impacted quarterly profitability.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the ability to sustain the turnaround in EBITDA margins while facing volatile raw material costs and intense MNC competition, with a potential impact of 5-10% on margins.

Geographic Concentration Risk

Revenue is primarily domestic, but sourcing is heavily concentrated in China and Hong Kong.

Third Party Dependencies

High dependency on a few large customers (top 5 representing 71.66% of FY23 revenue) and international component suppliers.

Technology Obsolescence Risk

High risk due to rapidly changing technology in the electronics sector; failure to innovate could lead to further inventory write-offs similar to the INR 17.34 Cr hit in FY24.

Credit & Counterparty Risk

Receivables cycle of 45 days indicates moderate credit risk from the distributor network.