💰 Financial Performance

Revenue Growth by Segment

Standalone revenue from operations grew by 6.74% YoY, increasing from INR 124.58 Cr in FY24 to INR 132.98 Cr in FY25. Consolidated revenue for FY25 stood at INR 149.73 Cr, reflecting a 5.87% growth over the previous year's INR 141.44 Cr. Segment-specific growth percentages are not explicitly broken down, but the company is expanding from sugar into ethanol and bio-CNG.

Geographic Revenue Split

Not disclosed in available documents. However, the company's registered office and primary manufacturing units are located in Nanded, Maharashtra, suggesting a high concentration of domestic revenue from this region.

Profitability Margins

Standalone Net Profit Ratio improved slightly from 5.75% in FY24 to 5.81% in FY25. Standalone Profit After Tax (PAT) grew by 7.82% YoY to INR 7.72 Cr. Consolidated PAT for FY25 was INR 9.33 Cr compared to INR 8.72 Cr in FY24, a growth of 7.01%.

EBITDA Margin

Standalone EBITDA grew by 7.68% YoY, rising from INR 8.69 Cr in FY24 to INR 9.36 Cr in FY25. The EBITDA margin remained stable at approximately 7.04% of total income.

Capital Expenditure

The company raised INR 99.60 Cr for capital expenditure, including INR 58.25 Cr via IPO for a greenfield unit (Ethanol, Bio-CNG, Fertilizer) and INR 41.35 Cr via Preferential Issue for expanding sugar manufacturing capacity from 2,500 MT to 4,000 MT TCD per day. As of September 30, 2025, INR 89.37 Cr has been utilized.

Credit Rating & Borrowing

The Debt-Equity ratio improved significantly from 2.04 times in FY24 to 1.31 times in FY25, indicating reduced leverage following equity infusions. Specific credit ratings and interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Sugarcane is the primary raw material, accounting for the bulk of manufacturing costs for sugar and ethanol production. Specific percentage of total cost per material is not disclosed.

Import Sources

Sourced domestically, primarily from the Nanded region and surrounding districts in Maharashtra to support the sugar manufacturing facility.

Key Suppliers

Not disclosed in available documents; typically involves local farming communities and sugarcane cooperatives.

Capacity Expansion

Current sugar manufacturing capacity is 2,500 MT TCD per day, with a planned expansion to 4,000 MT TCD per day. Additionally, a greenfield unit is being set up for Ethanol, Bio-CNG, and Fertilizer production.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company noted exposure to price fluctuations of raw materials and manages this through forward booking and inventory management.

Manufacturing Efficiency

The company is focused on increasing efficiency through a 60% capacity expansion in its sugar division (from 2,500 to 4,000 TCD) and diversifying into high-value by-products like Ethanol and Bio-CNG.

📈 Strategic Growth

Expected Growth Rate

60%

Growth Strategy

Growth will be achieved by expanding sugar crushing capacity by 60% (to 4,000 TCD) and operationalizing a new greenfield unit for Ethanol and Bio-CNG. This aligns with the Indian government's target of 20% ethanol blending by 2025, providing a stable revenue stream and higher margins compared to standalone sugar production.

Products & Services

Sugar, Ethanol, Bio-CNG, and Fertilizer.

Brand Portfolio

M.V.K. Agro Food Product Limited.

New Products/Services

Ethanol, Bio-CNG, and Fertilizer are the new product lines following the greenfield expansion funded by the INR 58.25 Cr IPO proceeds.

Market Expansion

Expansion is focused on the Nanded region of Maharashtra for production, while targeting the national energy market through ethanol blending programs.

🌍 External Factors

Industry Trends

The sugar sector is transitioning into an energy-hub model driven by the 20% ethanol blending target by 2025. This shift is intended to reduce fossil fuel reliance and ensure stable farmer incomes.

Competitive Moat

Moat is based on integrated operations (sugar + ethanol + bio-CNG) and geographic proximity to sugarcane cultivation in Maharashtra. Sustainability is tied to government mandates for green energy.

Macro Economic Sensitivity

Highly sensitive to agricultural output and government fiscal policy. A slowdown in government capex (utilization at 37.3% in H1 FY25 vs 49% YoY) and industrial growth (manufacturing slowed to 2.2% from 7%) impacts the broader economic environment.

Consumer Behavior

Shift toward sustainable and green energy alternatives is driving demand for ethanol and bio-CNG.

Geopolitical Risks

Geopolitical uncertainties and disruptions in the Red Sea region have weighed on exports, with total export growth slowing to 2.8%.

⚖️ Regulatory & Governance

Industry Regulations

Operations are heavily influenced by the SEBI (ICDR) Regulations and the 20% ethanol blending mandate by 2025. The company received an advisory letter from NSE on November 26, 2025, regarding non-compliance with SEBI (ICDR) Regulations for post-allotment listing of 45,93,900 shares.

Environmental Compliance

The company is investing in Bio-CNG and Ethanol to support environmental sustainability and energy security, though specific ESG compliance costs are not listed.

Taxation Policy Impact

Current tax for FY25 was INR 1.05 Cr (Standalone) and INR 1.34 Cr (Consolidated). Standalone tax expense decreased from INR 1.68 Cr in FY24.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility and finished goods price fluctuations are key risks. Regulatory changes in the sugar or ethanol pricing framework could impact margins by an estimated 5-10% based on historical cyclicality.

Geographic Concentration Risk

High concentration in Nanded, Maharashtra, making the company vulnerable to regional weather patterns and local state-level agricultural policies.

Third Party Dependencies

High dependency on local sugarcane farmers for raw material supply.

Technology Obsolescence Risk

The company is mitigating technology risks by setting up a modern greenfield unit for Bio-CNG and Ethanol production.

Credit & Counterparty Risk

Debtors Turnover Ratio significantly decreased from 1562.19 times in FY24 to 683.07 times in FY25, which may indicate a change in credit terms or collection cycles.