💰 Financial Performance

Revenue Growth by Segment

The company operates in a single reportable segment as per AS 17. Total revenue for FY 2024-25 was INR 15,280.19 Lakhs, representing a 1.66% decrease from INR 15,538.30 Lakhs in FY 2023-24. However, the half-year ended September 30, 2025, showed revenue of INR 9,431.45 Lakhs, a 19.95% increase compared to INR 7,862.84 Lakhs in the same period of the previous year.

Geographic Revenue Split

Not disclosed in available documents. The company mentions dependency on imported raw materials, suggesting international supply chain exposure, but specific regional revenue splits are not provided.

Profitability Margins

Net Profit Margin improved slightly from 0.86% in FY 2023-24 to 0.93% in FY 2024-25. Profit After Tax (PAT) for FY 2024-25 was INR 141.85 Lakhs, a 6.19% increase from INR 133.58 Lakhs in the previous year. For the half-year ended September 30, 2025, PAT stood at INR 81.75 Lakhs.

EBITDA Margin

Operating Profit before working capital changes for FY 2024-25 was INR 457.67 Lakhs, representing an EBITDA-proxy margin of approximately 2.99% of total revenue. For the half-year ended September 30, 2025, this figure was INR 431.21 Lakhs, indicating a significant margin expansion to 4.57% due to better operational efficiency.

Capital Expenditure

The company undertook significant capital expenditure in FY 2024-25, with a net cash outflow for investing activities of INR 1,961.98 Lakhs, primarily driven by the purchase of capital goods/fixed assets amounting to INR 2,528.22 Lakhs. As of September 30, 2025, Capital Work in Progress (CWIP) stood at INR 295.47 Lakhs, up 262% from INR 81.60 Lakhs in March 2025.

Credit Rating & Borrowing

Total borrowings as of September 30, 2025, reached INR 6,841.05 Lakhs (Long-term: INR 2,509.39 Lakhs; Short-term: INR 4,331.66 Lakhs). Finance costs for FY 2024-25 were INR 231.46 Lakhs, implying an average borrowing cost of approximately 3.9% based on year-end debt levels, though specific credit ratings are not disclosed.

⚙️ Operational Drivers

Raw Materials

Stainless steel and aluminum foils are the primary raw materials, with 'Cost of Material Consumed' totaling INR 12,949.74 Lakhs in FY 2024-25, representing 84.7% of total revenue.

Import Sources

Not disclosed in available documents, though the company explicitly identifies dependency on imported raw materials as a primary supply chain risk.

Capacity Expansion

Current property, plant, and equipment (PPE) is valued at INR 4,584.95 Lakhs as of September 30, 2025. The company is actively expanding, evidenced by the INR 295.47 Lakhs currently in Capital Work in Progress (CWIP), which will likely increase production capacity for foil products upon completion.

Raw Material Costs

Raw material costs decreased by 3.32% YoY from INR 13,394.12 Lakhs in FY 2023-24 to INR 12,949.74 Lakhs in FY 2024-25. The company utilizes sourcing and R&D strategies to maintain competitive cost structures against fluctuating global commodity prices.

Manufacturing Efficiency

Return on Capital Employed (ROCE) was 8.81% in FY 2024-25, a decrease from 10.32% in FY 2023-24, suggesting that recent heavy capital investments have not yet fully translated into proportional earnings growth.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company plans to achieve growth through an emphasis on R&D and strategic sourcing to maintain a competitive cost structure. By investing in fixed assets (INR 2,528.22 Lakhs in FY25), the company is positioning itself to increase output and capture higher market share in the stainless steel foil and flexible packaging sectors.

Products & Services

Stainless steel foils and flexible packaging materials used across various industrial applications.

Brand Portfolio

Quality Foils (India) Limited.

🌍 External Factors

Industry Trends

The industry is shifting toward stricter quality standards (BIS norms) and environmental compliance. QFIL is positioning itself by upgrading its internal controls and ERP systems to ensure data integrity and regulatory adherence in a growing but increasingly regulated market.

Competitive Landscape

The company faces competition from both domestic and international foil manufacturers, particularly those with more integrated supply chains that are less dependent on imports.

Competitive Moat

The company's moat is based on its established manufacturing infrastructure (INR 4,584.95 Lakhs in PPE) and its integrated ERP-driven internal control systems. This provides a cost-leadership advantage in the foils market, though it is vulnerable to raw material price volatility.

Macro Economic Sensitivity

The company is sensitive to global commodity prices and import-export duties. A slowdown in industrial manufacturing would reduce demand for packaging foils, directly impacting the 84.7% of revenue derived from material-intensive production.

Geopolitical Risks

Trade barriers or changes in import-export duties are cited as significant risks that could disrupt the supply of raw materials or increase the cost of production for the company's foil products.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by BIS norms and import-export duties. The company must also comply with the Companies Act, 2013, and SEBI (LODR) Regulations, 2015, specifically regarding internal financial controls and Structured Digital Database (SDD) for insider trading.

Environmental Compliance

The company identifies environmental regulations as a regulatory risk that may impact operations, though specific compliance costs are not disclosed.

Taxation Policy Impact

The effective tax rate for FY 2024-25 was approximately 41.7% (Tax expense of INR 101.53 Lakhs on Profit Before Tax of INR 243.38 Lakhs).

Legal Contingencies

The company reported no pending litigations regarding benami property. Other specific legal case values are not disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the volatility of imported raw material prices and potential changes in import duties, which could impact the cost of material consumed (currently 84.7% of revenue).

Third Party Dependencies

High dependency on banks for working capital, with short-term borrowings of INR 4,331.66 Lakhs as of September 2025, representing 40.5% of total equity and liabilities.

Technology Obsolescence Risk

The company mitigates technology risk by using ERP systems for finance, inventory, and production tracking to ensure data integrity and operational efficiency.

Credit & Counterparty Risk

Trade receivables stood at INR 3,492.02 Lakhs as of September 30, 2025, an increase of 42.2% from March 2025 (INR 2,454.79 Lakhs), indicating a potential increase in credit risk or a shift in payment terms with customers.