RCDL - Rajgor Castor
Financial Performance
Revenue Growth by Segment
The company operates in a single segment: Castor Oil and its derivatives. Total revenue from operations grew 10.72% YoY, increasing from INR 564.84 Cr in FY 2023ā24 to INR 625.40 Cr in FY 2024ā25.
Geographic Revenue Split
Export revenues experienced an exceptional surge of over 430% in FY 2024ā25, reflecting a significant shift toward international markets, though the exact percentage of total revenue from exports vs. domestic sales is not disclosed.
Profitability Margins
Net Profit Ratio declined from 1.73% in FY 2023ā24 to 1.44% in FY 2024ā25. Operating Profit Margin also moderated from 3.57% to 3.37% during the same period due to pricing strategies aligned with market conditions.
EBITDA Margin
EBITDA increased by 56% to INR 33 Cr during 8MFY24 (provisional). However, the full-year FY 2024ā25 Profit After Tax (PAT) decreased by 7.93% to INR 9.01 Cr from INR 9.78 Cr in the previous year.
Capital Expenditure
The company reported an absence of major capex plans for the FY25 to FY27 period, which provides a cushion to liquidity. Historical utilization of IPO funds included INR 29.92 Cr for working capital and INR 10.74 Cr for general corporate purposes.
Credit Rating & Borrowing
Assigned a long-term rating of IVR BBB/Stable and a short-term rating of IVR A3+ (later withdrawn at company request). Interest Coverage Ratio was 4.13x in FY23, and the company maintains a conservative capital structure with a debt-equity ratio of 0.53 as of March 31, 2025.
Operational Drivers
Raw Materials
Castor seeds are the primary raw material used for producing castor oil and derivatives; specific percentage of total cost is not disclosed.
Import Sources
Sourced domestically with a focus on proximity to raw material sources, primarily in Gujarat where the Harij plant is located.
Capacity Expansion
Current installed capacity at the Harij plant is 450 MT per day. No specific expansion timeline for additional capacity was provided in the documents.
Raw Material Costs
Total expenditure (including change in inventories) was INR 613.46 Cr in FY 2024ā25, representing approximately 98% of revenue, up from INR 551.34 Cr in FY 2023ā24.
Manufacturing Efficiency
The company focuses on optimization of capacity utilization and improved plant efficiency to support the 430% surge in export volumes.
Strategic Growth
Expected Growth Rate
10.72%
Growth Strategy
Growth is driven by an aggressive global expansion strategy (evidenced by 430% export growth), deeper market penetration in domestic segments, and product diversification within the castor derivatives space. The company is utilizing IPO proceeds of INR 29.92 Cr to fund working capital requirements necessary for scaling operations.
Products & Services
Castor Oil and various castor oil-based derivatives.
New Products/Services
The company is pursuing product diversification to gain customer trust in newer geographies, though specific new product names are not listed.
Market Expansion
Targeting international markets through global expansion strategies, which resulted in a 430% surge in export revenue in FY 2024ā25.
External Factors
Industry Trends
The industry is seeing a shift toward higher regulatory requirements for environmental compliance and food safety. RCDL is positioning itself by upgrading controls and focusing on international quality standards.
Competitive Landscape
Intense competition exists from multiple players in both domestic and global markets, leading to pricing pressure and margin constraints.
Competitive Moat
Durable advantages include the extensive experience of the promoters in the castor industry and the strategic proximity of the manufacturing plant to raw material sources in Gujarat.
Macro Economic Sensitivity
Sensitive to global inflation and commodity price cycles, which exert pressure on input costs and can lead to margin erosion.
Consumer Behavior
Increasing global demand for sustainable and bio-based derivatives is driving the shift toward castor-based products.
Geopolitical Risks
Geographical concentration is noted as a rating constraint, and international trade is subject to stringent export regulations and potential trade barriers.
Regulatory & Governance
Industry Regulations
Subject to stringent environmental, quality, and export regulations. Non-compliance can lead to fines, shipment delays, or reputational damage.
Environmental Compliance
The company maintains strict adherence to statutory environmental regulations; specific ESG costs are not disclosed.
Taxation Policy Impact
Tax expense for FY 2024ā25 was INR 4.91 Cr, representing an effective tax rate of approximately 35.2% of Profit Before Tax.
Legal Contingencies
The company is exempt from certain Corporate Governance reports under Regulation 27(2) due to its SME listing, but must comply with Regulation 23 (Related Party Transactions) starting April 1, 2025.
Risk Analysis
Key Uncertainties
Volatility in castor seed prices and currency exchange rates are the primary uncertainties, with potential to impact margins by over 5-10% based on historical margin fluctuations.
Geographic Concentration Risk
A significant portion of operations and raw material sourcing is concentrated in Gujarat, which is identified as a key rating constraint.
Third Party Dependencies
High dependency on bank facilities for working capital, with utilization levels reaching approximately 88%.
Technology Obsolescence Risk
The company is upgrading internal financial controls and manufacturing processes to remain competitive against technological shifts in the derivatives industry.
Credit & Counterparty Risk
Trade receivables stood at INR 33.06 Cr as of September 2025. The debtors turnover ratio decline suggests a more lenient credit policy to drive sales.