NIRMAN - Nirman Agri

📊 NSE: NIRMAN 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 10:33

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 273.42% YoY in FY25 to INR 236.52 Cr from INR 63.34 Cr in FY24. For 9M FY25, revenue reached INR 173.52 Cr, reflecting a 304.69% YoY growth. The primary segment is Agri Genetics (Seeds).

Geographic Revenue Split

The company operates across India and is actively exploring international markets. Specific percentage split by region is not disclosed in available documents.

Profitability Margins

Net Profit Ratio for FY25 was 10.69%, down from 16.43% in FY24. Management targets a PAT margin of 14% to 15% as the new facility reaches full capacity. H1 FY26 PAT margin was approximately 9.97% (INR 14.58 Cr PAT on INR 146.23 Cr revenue).

EBITDA Margin

9M FY25 EBITDA was INR 19.24 Cr, up 151.40% YoY. Q3 FY25 EBITDA margin was approximately 11.82% (INR 7.22 Cr on INR 61.07 Cr revenue), which grew 124.71% YoY.

Capital Expenditure

The company successfully launched a high-end 10-tons-per-hour production and processing facility in late 2024/early 2025. Purchase of fixed assets for H1 FY26 was INR 0.18 Lakhs, following a significant investment of INR 241.35 Lakhs in FY25.

Credit Rating & Borrowing

Total borrowings as of March 31, 2025, were INR 43.86 Lakhs, a decrease from INR 109.19 Lakhs in FY23. The Debt-Equity ratio is very low at 0.03. Specific credit ratings and interest rate percentages are not disclosed.

⚙️ Operational Drivers

Raw Materials

Parent seeds and production materials represent the primary cost. Cost of materials consumed in FY25 was INR 205.17 Cr, accounting for 86.7% of total revenue.

Capacity Expansion

Current capacity includes a newly commissioned 10-tons-per-hour production and processing facility. This facility is expected to support the target of INR 2,000 Cr revenue over the next 5 years.

Raw Material Costs

Raw material costs (Cost of Materials Consumed) were INR 205.17 Cr in FY25, up 315.85% from INR 49.34 Cr in FY24, tracking with the 273% revenue growth.

Manufacturing Efficiency

The new facility is currently not operating at full capacity. Efficiency is expected to improve as the plant optimizes its 10-ton/hour throughput, cutting transportation and supply chain costs.

Logistics & Distribution

Management expects to significantly cut logistics and supply chain costs by moving processing in-house at the Nashik facility, aiming to restore margins to the 14-15% range.

📈 Strategic Growth

Expected Growth Rate

200%

Growth Strategy

The company plans to achieve its 200% growth guidance through the full utilization of its new 10-ton/hour processing plant, expanding its distribution network across India, and exploring international markets. It targets INR 2,000 Cr revenue within five years.

Products & Services

Hybrid seeds and genetically modified seeds for various agricultural crops.

Brand Portfolio

Nirman Agri Genetics.

New Products/Services

The company is focusing on product innovations and capacity development to sustain its 200% growth guidance.

Market Expansion

Expansion of distribution network across India and active exploration of international markets through strategic partnerships.

Strategic Alliances

Exploring strategic partnerships to enhance market reach and grow the customer base internationally.

🌍 External Factors

Industry Trends

The agri-genetics industry is growing rapidly with a shift toward high-yield hybrid seeds. Nirman is positioning itself as an integrated player by owning its processing infrastructure.

Competitive Landscape

The company faces competition from both established seed majors and regional players, though specific competitor names are not listed.

Competitive Moat

The moat is built on cost leadership and supply chain control through its new 10-ton/hour facility, which reduces third-party processing costs and ensures seed quality consistency.

Macro Economic Sensitivity

The business is highly sensitive to agricultural cycles and monsoon patterns, which affect seed demand and farmer purchasing power.

Consumer Behavior

Increasing farmer engagement and reliance on high-quality, high-yield seeds to improve agricultural productivity.

Geopolitical Risks

Trade barriers and regulatory hurdles in international markets as the company seeks global expansion.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act 2013 and SEBI Listing Regulations. Seed quality and manufacturing standards are governed by agricultural regulations.

Taxation Policy Impact

Effective tax rate for H1 FY26 was approximately 3.02% (INR 0.45 Cr tax on INR 15.03 Cr PBT).

Legal Contingencies

The company has disclosed the impact of pending litigations as of March 31, 2025, on its financial position, though specific case values were not detailed in the summary.

⚠️ Risk Analysis

Key Uncertainties

Significant drop in inventory turnover (from 8.10 to 2.25) and trade receivables turnover (from 8.10 to 2.41) indicates potential working capital stress. Seed quality failure remains a primary business risk.