PALREDTEC - Palred Technolog

📊 NSE: PALREDTEC 🏢 Trading 📅 Last Updated: 12/14/2025 10:50

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue decreased by 25.47% YoY to INR 89.77 Cr. Palred Electronics Private Limited revenue fell 26.83% to INR 85.87 Cr; Palred Technology Services revenue dropped 100% to INR NIL; Palred Retail Private Limited revenue declined 67.85% to INR 0.87 Lakhs.

Geographic Revenue Split

Not disclosed in available documents; however, the company is headquartered in Hyderabad, Telangana.

Profitability Margins

Operating Profit Margin declined from 1% to -3% YoY. Net Profit Margin worsened from -4% to -12% due to a significant decrease in turnover and impairment on non-current assets in the previous year.

EBITDA Margin

Operating loss before working capital changes was INR 5.52 Cr for FY 2024-25, compared to a loss of INR 1.63 Cr in the prior period, representing a widening loss margin.

Capital Expenditure

Not disclosed in available documents; however, the company maintains a cash and bank balance of INR 55.83 Cr as of March 31, 2025.

Credit Rating & Borrowing

The company maintains a Debt-Equity ratio of 1.15. Finance costs for the half-year ended September 30, 2025, were INR 2.50 Cr.

⚙️ Operational Drivers

Raw Materials

Electronic parts and components for consumer electronics and fashion accessories; specific percentage of total cost not disclosed.

Raw Material Costs

Direct costs for the material subsidiary historically included COGS at 40.8% of revenue (INR 16.82 Cr on INR 41.17 Cr revenue). Current procurement strategies focus on decentralized risk registers to manage part procurement risks.

Manufacturing Efficiency

Inventory Turnover Ratio decreased from 5.75 to 3.09, indicating a slowdown in manufacturing and sales velocity.

Logistics & Distribution

Historical logistics costs were approximately 26.8% of revenue (INR 11.06 Cr on INR 41.17 Cr revenue).

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company aims to achieve growth through effective customer management to minimize defaults, prudent financial planning, and decentralized risk management to protect against IT security and product compliance risks.

Products & Services

Electronic products, fashion accessories, and related technology services.

Brand Portfolio

Palred Electronics, Palred Retail, and Palred Technology Services.

🌍 External Factors

Industry Trends

The industry is facing challenges in revenue growth, as evidenced by the company's 25.47% consolidated revenue decline. There is an increasing focus on IT security and compliance management.

Competitive Landscape

The company operates in the electronic products and fashion accessories market, currently facing a 26.83% decline in its primary electronics subsidiary.

Competitive Moat

The company relies on its internal control systems and decentralized risk management to maintain operational stability, though declining turnover ratios suggest a weakening competitive position.

Macro Economic Sensitivity

Sensitivity to global IT security risks and international intellectual property rights enforcement.

Geopolitical Risks

Risks related to the lack of effective IP protection in advanced countries, which may lead to legal challenges for the company and its customers.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, Companies Act 2013, FEMA 1999 (regarding FDI and ODI), and the Depositories Act 1996.