PASUPTAC - Pasupati Acrylon

📊 NSE: PASUPTAC 🏢 Textiles - Manmade 📅 Last Updated: 12/14/2025 10:54

💰 Financial Performance

Revenue Growth by Segment

Total revenue for H1 FY25 reached INR 500.34 Cr, representing a 75.93% growth compared to INR 284.40 Cr in H1 FY24. While specific segment-wise revenue splits for the current quarter are not fully detailed, the company operates in Acrylic Staple Fiber (ASF), Cast Polypropylene (CPP) films, and the newly commissioned Grain-based Ethanol segment. In FY24, ASF sales realization dropped 16% to INR 120.12/Kg from INR 143.42/Kg in FY23.

Geographic Revenue Split

Not disclosed in available documents; however, the company faces competitive pressure from cheaper imports and substitutes, suggesting a significant domestic market presence in India.

Profitability Margins

Net Profit Margin improved significantly by 148.44% to 5.59% in FY25 from 2.25% in FY24. Operating Profit Margin also rose 121.78% to 7.94% in FY25 compared to 3.58% in FY24. This recovery follows a difficult FY24 where PBILDT margins had declined 294 bps to 3.07% due to losses in the ASF and CPP segments during Q2 FY24.

EBITDA Margin

Operating Profit Margin stood at 7.94% in FY25, a YoY increase of 121.78%. Core profitability is recovering from FY24 lows (3.07% PBILDT) as the company stabilizes its new Ethanol operations and manages raw material price fluctuations more effectively.

Capital Expenditure

The company recently completed a major capital expenditure for a Grain-based Ethanol Plant which commenced commercial production in March 2025. This project was funded partly through term loans, leading to a 130.76% increase in the Debt-Equity ratio to 0.30 in FY25.

Credit Rating & Borrowing

The company maintains a 'Stable' outlook. Positive rating sensitivities include sustaining a Total Operating Income (TOI) beyond INR 850 Cr and Gross Cash Accruals (GCA) above INR 45 Cr. Interest coverage ratio moderated to 5.49x in FY25 from 35.60x in FY24 due to new term loan obligations for the Ethanol plant.

⚙️ Operational Drivers

Raw Materials

Acrylonitrile (for ASF production) and Polypropylene (for CPP films). Acrylonitrile prices are a primary cost driver, with realizations falling from INR 143.42/Kg in FY23 to INR 120.12/Kg in FY24.

Import Sources

Not specifically named, but the company is noted to have a high dependence on imported raw materials, exposing it to foreign exchange fluctuation risks.

Capacity Expansion

The company successfully commissioned its Grain-based Ethanol Plant in March 2025. This marks a significant expansion into a new business segment to diversify revenue away from the volatile textile and packaging film markets.

Raw Material Costs

Cost of materials consumed in H1 FY25 was INR 349.56 Cr, representing approximately 70.4% of revenue from operations. Raw material price volatility is a key constraint on profitability, as seen in FY24 when price declines led to inventory-related losses.

Manufacturing Efficiency

Return on Capital Employed (ROCE) improved by 138.15% to 11.86% in FY25 from 4.98% in FY24, indicating significantly better utilization of capital and assets following the Ethanol plant commissioning.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth is being driven by the diversification into the Grain-based Ethanol sector, which commenced in March 2025. The strategy involves scaling this new segment to reach a Total Operating Income exceeding INR 850 Cr, reducing reliance on the cyclical Acrylic Staple Fiber market and leveraging the stable demand for Ethanol in fuel blending.

Products & Services

Acrylic Staple Fiber (ASF), Cast Polypropylene (CPP) Films, and Grain-based Ethanol.

Brand Portfolio

Pasupati Acrylon.

New Products/Services

Grain-based Ethanol is the primary new product, with commercial production starting in March 2025. It is expected to be a major contributor to the targeted INR 850 Cr+ annual revenue.

Market Expansion

The company is expanding its footprint into the renewable energy/bio-fuel space through its Ethanol plant to mitigate the risks associated with its traditional textile-related products.

🌍 External Factors

Industry Trends

The industry is shifting toward diversification into bio-fuels (Ethanol) due to government blending mandates. The traditional ASF market is facing disruption from cheaper synthetic substitutes and imports.

Competitive Landscape

Faces intense competition from international manufacturers of Acrylic Fiber and local/international producers of packaging films.

Competitive Moat

The company's moat is based on its diversified revenue base (ASF, CPP, and now Ethanol) and experienced management. However, this moat is vulnerable to global commodity price swings and lack of proprietary technology/patents.

Macro Economic Sensitivity

Highly sensitive to global crude oil and chemical price cycles which dictate the cost of Acrylonitrile and Polypropylene.

Consumer Behavior

Shift toward sustainable packaging and government-mandated Ethanol blending in fuel are the primary trends affecting demand for the company's output.

Geopolitical Risks

Trade barriers or disruptions in the supply of Acrylonitrile from global markets could halt production or significantly increase costs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to environmental norms for chemical manufacturing and Ethanol production, as well as SEBI listing regulations and the Companies Act 2013.

Environmental Compliance

The company spent INR 86.00 Lakh on CSR activities in FY25, exceeding the statutory requirement of INR 85.79 Lakh (2% of average net profit).

Taxation Policy Impact

Current tax (net) for H1 FY25 was INR 3.63 Cr, with a deferred tax credit of INR 2.58 Cr.

Legal Contingencies

The company reported no pending proceedings under the Insolvency and Bankruptcy Code, 2016. No other specific high-value court cases were detailed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Project stabilization risk for the new Ethanol plant (high impact if production stalls), raw material price volatility (can swing margins by >200 bps), and foreign exchange risk.