PSFL - Paramount Specia

📊 NSE: PSFL 🏢 Castings & Forgings 📅 Last Updated: 12/14/2025 10:53

💰 Financial Performance

Revenue Growth by Segment

FY 2024-25 sales totaled INR 10,925.75 Lakhs, split as: Exports (25.90%, INR 2,829.71 Lakhs), Petrochemicals/Chemicals (21.06%, INR 2,301.31 Lakhs), Oil & Gas (16.84%, INR 1,840.41 Lakhs), Heavy Engineering (11.05%, INR 1,207.02 Lakhs), Nuclear Power (1.08%, INR 117.72 Lakhs), Other Infrastructure (5.12%, INR 559.37 Lakhs), and Others (18.95%, INR 2,070.21 Lakhs). H1 FY 2025-26 revenue grew 23.25% YoY to INR 5,835.06 Lakhs.

Geographic Revenue Split

Exports contribute 25.90% of total sales (INR 2,829.71 Lakhs) to regions including Oman, Canada, Italy, and the United Kingdom, while domestic Indian operations account for 74.10% of revenue.

Profitability Margins

Operating Profit Margin declined to 8.50% in FY 2024-25 from 13.24% in FY 2023-24 (a 35.8% decline). Net Profit Margin fell to 4.06% from 5.31% (a 24% decline). H1 FY 2025-26 PAT grew 36.86% YoY to INR 219.02 Lakhs.

EBITDA Margin

PBILDT was INR 13.57 Cr in FY 2023-24 (13.1% margin) and INR 3.57 Cr in H1 FY 2024-25 (7.5% margin).

Capital Expenditure

Raised INR 32.34 Cr via IPO in September 2024 for expansion; planned self-financed solar capacity expansion of 300–400 kW to reinforce renewable energy adoption.

Credit Rating & Borrowing

CRISIL rating is 'Crisil B+/Stable/Crisil A4 Issuer not cooperating'. Interest coverage ratio stood at 3.43x in H1 FY 2024-25, down from 7.15x in FY 2023-24.

⚙️ Operational Drivers

Raw Materials

Stainless steel (SS) bars, billets, and rounds; Mild steel (MS) plates and rounds; Carbon steel and alloy steel.

Import Sources

100% of primary raw materials are sourced from the domestic Indian market.

Capacity Expansion

Current combined forging capacity is 12,000 MTPA across two plants in Maharashtra (Kamothe and Khalapur).

Raw Material Costs

Raw material price volatility is identified as a key risk; procurement is managed through a multi-source strategy to mitigate supply chain disruptions.

Manufacturing Efficiency

Integrated in-house capabilities for die development, CNC/VMC machining, and automated heat treatment to optimize production efficiency.

Logistics & Distribution

Not disclosed as a specific % of revenue.

📈 Strategic Growth

Expected Growth Rate

23%

Growth Strategy

Growth is driven by a 23.25% increase in H1 FY 2025-26 revenue through increased sales volume, new customer acquisitions, and operational efficiency. Strategy includes diversifying into Nuclear Power (1.08% of sales) and expanding export markets (25.9% of sales).

Products & Services

Precision steel forged flanges (carbon steel, stainless steel, and alloy steel) used in pipe fittings for heavy industries.

Brand Portfolio

Paramount Speciality Forgings Limited (PSFL), Paramount Forge.

New Products/Services

Increasing focus on aftermarket and maintenance products to mitigate cyclicality in capital expenditure projects.

Market Expansion

Targeting expansion in export markets across Canada, Italy, and the UK to reduce domestic sector concentration.

🌍 External Factors

Industry Trends

Industry is shifting toward advanced forging technologies and renewable energy adoption; PSFL is positioning itself with solar expansion and CNC/VMC machining integration.

Competitive Landscape

Competes in a fragmented forging industry with emerging risks from alternative manufacturing processes and materials.

Competitive Moat

60-year industrial lineage, 12,000 MTPA capacity, and integrated in-house capabilities from die development to machining provide a sustainable cost and quality advantage.