PARASPETRO - Paras Petrofils

📊 NSE: PARASPETRO 🏢 Textiles - Manmade 📅 Last Updated: 12/14/2025 10:53

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for all segments remained at INR 0.00 Lacs for Q2 FY26, H1 FY26, and the full year FY25, representing 0% growth as the company reported no core operational activity. Total income is derived entirely from 'Other Income' which was INR 65.10 Lacs for H1 FY26, a 4.68% decrease from INR 68.30 Lacs in H1 FY25.

Geographic Revenue Split

Not disclosed in available documents as the company reported zero revenue from operations across all regions.

Profitability Margins

Net Profit Margin is not applicable to operations due to zero revenue. However, Net Profit for H1 FY26 was INR 47.07 Lacs (72.3% of total income), compared to INR 52.98 Lacs (77.5% of total income) in H1 FY25, showing a decline in non-operational profitability.

EBITDA Margin

Core EBITDA margin is not measurable due to zero revenue from operations. The company relies on Other Income of INR 28.07 Lacs in Q2 FY26 to cover minimal expenses of approximately INR 1.23 Lacs.

Capital Expenditure

The company maintained Property, Plant and Equipment with a total asset value contributing to a balance sheet size of INR 2,083.12 Lacs as of September 30, 2025. No specific planned CapEx figures were disclosed for FY26.

Credit Rating & Borrowing

Not disclosed in available documents. The company reported minimal 'Other Financial Liabilities' of INR 0.01 Lacs as of September 30, 2025.

⚙️ Operational Drivers

Raw Materials

Cotton and Man-Made Fibers (MMF) are identified as the primary raw materials required for the business, although current consumption is zero due to halted operations.

Capacity Expansion

Current installed capacity is not specified in the documents; however, the company is focusing on regional capabilities through events like 'Bharat Tex' to potentially revive operational capacity.

Raw Material Costs

Raw material costs were INR 0.00 in H1 FY26 and FY25 due to the lack of manufacturing activity. Future costs are highly sensitive to global cotton and MMF price volatility.

Manufacturing Efficiency

Capacity utilization is currently 0% as evidenced by zero revenue from operations.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company aims to achieve growth by leveraging 'Bharat Tex' events to strengthen buyer linkages and showcase regional capabilities. The strategy focuses on monitoring global demand cycles and economic conditions in India and export markets to identify an optimal time for operational revival.

Products & Services

Historically, the company is positioned in the Petrofils and Textile sector (Polyester/Yarn), though it currently reports zero sales of these products.

Brand Portfolio

Paras Petrofils.

New Products/Services

No new product launches were disclosed in the current reporting period.

Market Expansion

The company is monitoring export markets for potential demand recovery, though no specific target regions were named.

Market Share & Ranking

Not disclosed.

🌍 External Factors

Industry Trends

The industry is currently focusing on large-scale branding events like 'Bharat Tex' to link buyers and regional manufacturers. The company is positioned to follow this trend to regain market relevance.

Competitive Landscape

The company operates in the highly competitive and fragmented textile/petrofils industry, facing pressure from both domestic and international manufacturers.

Competitive Moat

The company currently lacks a strong competitive moat as evidenced by zero operational revenue and negative 'Other Equity' of INR 1,644.55 Lacs as of March 31, 2025.

Macro Economic Sensitivity

Highly sensitive to Indian economic conditions and global textile demand cycles. A 1% shift in global textile demand significantly impacts the feasibility of restarting the company's production lines.

Consumer Behavior

Shifts toward sustainable textiles and fluctuations in global fashion cycles affect the demand for the company's historical polyester/yarn product base.

Geopolitical Risks

Global demand cycles and economic conditions in export markets are cited as key external risks that could create trade barriers or reduce order flow.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act, 2013 and Indian Accounting Standards (IND AS). Future manufacturing would be subject to textile industry pollution norms and export-import regulations.

Taxation Policy Impact

The company provided for a current tax expense of INR 1.44 Lacs for the year ended March 31, 2025.

Legal Contingencies

The company stated that no legal proceedings were initiated during the year or were pending against the company as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the ability to restart operations, with a potential 100% impact on core business viability if global demand for MMF does not recover.