PRAXIS - Praxis Home

📊 NSE: PRAXIS 🏢 Trading 📅 Last Updated: 12/14/2025 11:13

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations decreased by 45.82% YoY to INR 118.97 Cr (11,896.96 Lakh) in FY25 from INR 219.58 Cr (21,957.77 Lakh) in FY24. This decline was primarily due to non-availability of sufficient inventory and the closure of several stores.

Profitability Margins

Operating Profit Margin decreased from 48.22% in FY24 to 41.55% in FY25. Net Profit Margin improved from -35.22% in FY24 to -29.4% in FY25, though the company remains in a loss position.

EBITDA Margin

EBITDA loss was INR 62.43 Cr in FY25 compared to an EBITDA loss of INR 49.42 Cr in FY24, representing a widening of core operational losses despite cost-cutting measures.

Capital Expenditure

The company has put on hold its plans to incur any new capex to control costs and conserve financial resources during FY25.

Credit Rating & Borrowing

Interest Coverage Ratio stood at -1.09 times in FY25, an improvement from -2.5 times in FY24, though still negative due to ongoing losses.

⚙️ Operational Drivers

Raw Materials

Stock-in-trade (merchandise) represents the primary cost, with purchases of stock-in-trade totaling INR 49.33 Cr (4,932.85 Lakh) in FY25, accounting for 41.5% of revenue from operations.

Import Sources

The company's procurement strategy is described as 'largely import oriented,' though specific countries of origin are not listed.

Capacity Expansion

The company has put on hold plans to open new stores to conserve cash; current store count is not specified, but revenue was impacted by the closure of 'few stores' during FY25.

Raw Material Costs

Purchase of stock-in-trade decreased by 52.19% YoY to INR 49.33 Cr in FY25 from INR 103.17 Cr in FY24 due to liquidity constraints preventing merchandise procurement.

Manufacturing Efficiency

Not applicable as the company is a retail entity; however, store efficiency was low with most stores running below potential due to poor replenishment of merchandise.

Logistics & Distribution

Supply chain costs were optimized during the year, contributing to a 39.82% reduction in employee benefit expenses and other operational costs.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth will be pursued through cost rationalization, raising funds via rights issues to improve liquidity, and refining store operating systems. Future expansion is currently on hold until the financial position stabilizes.

Products & Services

Home retail merchandise, furniture, and home improvement products sold through retail store formats.

Brand Portfolio

Praxis Home Retail (operates HomeTown format).

Market Expansion

Plans to open new stores are currently on hold to conserve financial resources.

Strategic Alliances

Pledge of equity shares with Catalyst Trusteeship Ltd acting as Security Trustee on behalf of lenders.

🌍 External Factors

Industry Trends

The industry is facing challenges related to supply chain management and inventory replenishment; Praxis is positioning itself by consolidating its supply chain network.

Competitive Moat

Moat is based on strategic store locations and established store operating systems, though sustainability is currently challenged by a weak financial position.

Macro Economic Sensitivity

Business is sensitive to general economic and political conditions in India, as well as Indian monetary and fiscal policies.

Geopolitical Risks

Risks include changes in import-related policies and regulations which could disrupt the procurement of merchandise.

⚖️ Regulatory & Governance

Industry Regulations

The company tracks regulatory changes proactively to ensure compliance; procurement is subject to import policy regulations.

⚠️ Risk Analysis

Key Uncertainties

Liquidity constraints (impacted stock purchase by 52.19%), inventory shortages, and the ability to sustain operations with negative net worth (Return on Net Worth of -22.74%).