POLYSIL - Polysil Irrigati

📊 NSE: POLYSIL 🏢 Plastics Products 📅 Last Updated: 12/14/2025 11:06

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, Micro Irrigation Industry. Revenue from operations fell 68.77% YoY to INR 1388.84 Lakhs in FY 2024-25 from INR 4,446.42 Lakhs in FY 2023-24.

Geographic Revenue Split

Operations are spread across 9 Indian states: Gujarat, Tamil Nadu, Maharashtra, Andhra Pradesh, Karnataka, Madhya Pradesh, Uttar Pradesh, Rajasthan, and Haryana. Specific % contribution per region is not disclosed.

Profitability Margins

Net Profit Margin declined from 4.66% in FY 2023-24 to -13.33% in FY 2024-25. The company transitioned from a net profit of INR 207.17 Lakhs to a net loss of INR 185.19 Lakhs during this period.

EBITDA Margin

EBITDA margin stood at 8.7% in FY 2024-25 (INR 120.79 Lakhs), a significant decrease from 12.7% in FY 2023-24 (INR 566.56 Lakhs).

Capital Expenditure

The company raised INR 1959.28 Lakhs via a preferential equity issue and INR 1544.22 Lakhs via warrants in June 2025, primarily for installing new machinery and expanding existing capacity.

Credit Rating & Borrowing

Credit rating is not disclosed. Borrowing costs are reflected in finance costs of INR 183.86 Lakhs for FY 2024-25, which the company aims to reduce by using new capital for loan repayment.

⚙️ Operational Drivers

Raw Materials

Cost of Material Consumed (INR 996.52 Lakhs) and Purchases of Stock in Trade (INR 1107.44 Lakhs) are the primary cost drivers, likely consisting of polymers and irrigation components.

Capacity Expansion

Current manufacturing unit is 100,000 sq. ft. located in Vadodara, Gujarat. Planned expansion includes the installation of new and latest machinery funded by the INR 3503.5 Lakhs raised in June 2025.

Raw Material Costs

Total raw material and stock-in-trade costs were INR 2103.96 Lakhs in FY 2024-25, representing 151% of revenue due to inventory stocking and a sharp decline in sales.

Manufacturing Efficiency

Capacity utilization was low in FY 2024-25, contributing to the 68.77% revenue drop; the board is actively revisiting policies to increase utilization.

📈 Strategic Growth

Growth Strategy

Growth will be driven by a massive capital infusion of ~INR 35 Cr raised in June 2025 to: 1) Upgrade existing products, 2) Install latest machinery for capacity expansion, 3) Repay high-cost debt to improve net margins, and 4) Pursue strategic alliances and partnerships.

Products & Services

Drip irrigation systems, sprinkler systems, and related micro-irrigation components.

Brand Portfolio

Polysil.

New Products/Services

Upscaling and upgradation of existing products are planned using the June 2025 fund-raising proceeds; specific revenue contribution % is not disclosed.

Market Expansion

Targeting expansion of existing capacity and strategic alliances using INR 3503.5 Lakhs raised in June 2025; currently operates in 9 Indian states.

Strategic Alliances

Strategic partnerships or alliances are a stated objective for the INR 1544.22 Lakhs warrant issue; specific partner names are not disclosed.

🌍 External Factors

Industry Trends

The micro-irrigation industry is shifting toward institutional models in states like Andhra Pradesh and Gujarat. Polysil is positioning itself by upgrading technology and maintaining a 9-state reach despite recent revenue volatility.

Competitive Landscape

Operates in a competitive market across 9 Indian states, balancing government contracts and retail dealer networks.

Competitive Moat

Moat is based on an established 100,000 sq. ft. manufacturing base and a dual-channel sales model (Institutional/Open Market). Sustainability is currently challenged by a -13.33% net profit margin and slow receivables turnover.

Macro Economic Sensitivity

Highly sensitive to agricultural sector performance and government fiscal policy regarding irrigation subsidies.

Consumer Behavior

Demand is driven by farmer adoption of water-efficient irrigation, which is heavily contingent on the availability and disbursal of government subsidies.