šŸ’° Financial Performance

Revenue Growth by Segment

Total revenue from operations declined by 23.82% YoY to ₹76.52 crore in FY 2025. Segment contribution: Commercial Weighing Scales (41.19%), Health Range Scales (38.56%), Mechanical Range Scales (16.03%), Currency Counting & Home Automation (2.52%), and EMFR & Jewellery Range (1.69%).

Geographic Revenue Split

Not disclosed in available documents, though Maharashtra is identified as a critical market for government tenders and orders.

Profitability Margins

Net Profit margin for FY 2025 was 6.31% (₹4.83 crore profit on ₹76.52 crore revenue). Q3 FY25 PAT margin improved significantly to 17.53% compared to 10.49% in Q3 FY24.

EBITDA Margin

EBIDTA margin for FY 2025 was 12.84% (₹9.83 crore), a decline from 18.13% (₹18.39 crore) in FY 2024, primarily due to a 23.82% contraction in sales volumes.

Capital Expenditure

Property, Plant and Equipment increased by ₹3.45 crore, reaching ₹35.38 crore as of September 30, 2025, compared to ₹31.93 crore in March 2025, driven by factory expansion projects.

Credit Rating & Borrowing

Not disclosed in available documents; however, finance costs for the half-year ended September 30, 2025, were ₹3.60 lakhs.

āš™ļø Operational Drivers

Raw Materials

Electronics, software integration components, and precision control systems; total cost of materials consumed was ₹37.64 crore in FY 2025, representing 49.19% of total revenue.

Capacity Expansion

Current capacity not disclosed; however, the company is actively diverting internal resources toward factory expansion projects to support the new Drone Division.

Raw Material Costs

Raw material costs stood at ₹37.64 crore in FY 2025. The company monitors raw material prices regularly to mitigate input cost risk and supply chain volatility.

Manufacturing Efficiency

The company has trained a team of 15 certified internal auditors for ISO 9001:2015 to ensure quality and operational efficiency.

šŸ“ˆ Strategic Growth

Expected Growth Rate

82%

Growth Strategy

Growth will be driven by the new Drone Division acting as a catalyst for product diversification, factory expansion projects, and leveraging existing competencies in electronics and software integration to enter new revenue streams.

Products & Services

Electronic Weighing Scales & Systems, Electronic Currency Counting Machines, Digital Fare Meters, Home & Hotel Automation systems, Mechanical Scales, and Drones.

Brand Portfolio

Nitiraj

New Products/Services

Launch of the Drone Division and Remote Pilot Training Organization (RPTO) are expected to provide significant new revenue streams and R&D synergies.

Market Expansion

Expansion into the drone technology sector and industrial electrical equipment to diversify away from pure weighing technology.

šŸŒ External Factors

Industry Trends

The industry is shifting toward automation and drone technology; Nitiraj is positioning itself by diversifying into Home/Hotel automation and the Drone sector (RPTO).

Competitive Landscape

Faces competition in weighing scales, addressed through quality differentiation and customer-centric innovation.

Competitive Moat

Durable advantage stems from a strong legacy in weighing technology and integrated electronics/software capabilities, which are now being applied to the high-entry-barrier drone market.

Macro Economic Sensitivity

Highly sensitive to government fiscal policies and election cycles, which directly impact the timing of tenders and infrastructure spending.

Consumer Behavior

Shifts in demand-supply dynamics and rapid technological advancements are monitored as key market risks.

Geopolitical Risks

Fluctuations in the global economy and geopolitical environment are identified as factors that could cause actual performance to vary from projections.

āš–ļø Regulatory & Governance

Industry Regulations

Compliance with the Companies Act 2013, Indian Accounting Standards (IND-AS), and specific regulations for Remote Pilot Training Organizations (RPTO).

Taxation Policy Impact

The company adheres to IND-AS; current tax expense for the half-year ended September 30, 2025, was ₹28.07 lakhs.

āš ļø Risk Analysis

Key Uncertainties

Suspension of government tenders during election periods (impacted FY25 revenue by 23.82%) and volatility in raw material prices.

Geographic Concentration Risk

Significant dependency on the Maharashtra region for government-related orders and tender activity.

Third Party Dependencies

Dependency on logistics infrastructure and raw material suppliers for electronics and precision components.

Technology Obsolescence Risk

Risk of rapid technological shifts in the weighing and drone sectors; mitigated by ongoing R&D and software integration focus.

Credit & Counterparty Risk

Managed through stringent client evaluations and assertive receivables management to mitigate credit risk.