REFRACTORY - Refractory

📊 NSE: REFRACTORY 🏢 Refractories / Intermediates 📅 Last Updated: 12/14/2025 11:45

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations reached INR 58.77 Cr, representing a significant growth of 44.93% YoY compared to INR 40.55 Cr in the previous year. Segment-specific growth percentages are not disclosed.

Profitability Margins

Net Profit Margin stood at 10.29% (INR 6.05 Cr profit on INR 58.77 Cr revenue). Profit Before Tax (PBT) margin was 13.73% (INR 8.07 Cr).

EBITDA Margin

EBITDA Margin is calculated at 19.31% (INR 11.35 Cr), reflecting core operational profitability before interest, taxes, and depreciation. This is driven by a 44.93% increase in operational revenue.

Capital Expenditure

The company undertook significant capital expenditure of INR 10.16 Cr for the purchase of fixed assets during the audited period, aimed at expanding manufacturing capabilities.

Credit Rating & Borrowing

Credit rating is not disclosed. Finance costs were INR 0.82 Cr, representing 1.39% of total revenue.

⚙️ Operational Drivers

Raw Materials

Refractory raw materials and traded goods. Cost of Material Consumed represents 43.78% of total revenue (INR 25.73 Cr).

Capacity Expansion

Not disclosed in available documents, though INR 10.16 Cr was invested in fixed assets, suggesting capacity enhancement.

Raw Material Costs

Raw material costs totaled INR 25.73 Cr, accounting for 43.78% of revenue. The company identifies raw material price volatility and availability as a key risk that could squeeze margins.

Manufacturing Efficiency

Capacity utilization metrics are not disclosed. Revenue growth of 44.93% suggests high operational activity.

📈 Strategic Growth

Expected Growth Rate

44.93%

Growth Strategy

Growth is being driven by capacity expansion (INR 10.16 Cr capex), successful IPO execution (INR 2.00 Cr expenses), and increased market penetration in the refractory shapes segment. The company is also leveraging its associate company, which contributed INR 0.21 Cr to profits.

Products & Services

Refractory shapes, bricks, and related refractory materials used in high-temperature industrial applications.

Brand Portfolio

Refractory Shapes Limited.

Strategic Alliances

The company has an associate entity that contributed INR 20.68 lakhs (INR 0.21 Cr) to the net profit for the period.

🌍 External Factors

Industry Trends

The industry is seeing evolving regulatory requirements and standards. The company is positioning itself by maintaining 'adequate internal financial controls' and upgrading accounting software to meet audit trail requirements.

Competitive Landscape

Faces intense competition from both established and emerging players in the refractory sector.

Competitive Moat

The company's moat is built on its established presence in the refractory shapes market and its ability to scale, evidenced by a 44.93% revenue jump. Sustainability depends on managing raw material costs (43.78% of revenue).

Macro Economic Sensitivity

Sensitive to industrial growth and infrastructure spending, as refractory products are essential for high-temperature manufacturing processes.

Consumer Behavior

Demand is driven by industrial cycles in sectors requiring high-heat processing (steel, cement, glass).

Geopolitical Risks

Global supply chain disruptions are noted as a risk, which could impact the availability of specialized raw materials.

⚖️ Regulatory & Governance

Industry Regulations

Subject to evolving regulatory requirements and industry standards. The company must comply with Rule 11(g) regarding audit trail features in accounting software as of April 1, 2023.

Taxation Policy Impact

Effective tax rate is approximately 27.06% (INR 2.18 Cr current tax on INR 8.07 Cr PBT).

Legal Contingencies

The auditor's report is clean, stating a 'true and fair view.' No specific pending court case values or litigation details are listed in the provided documents.