💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 159.28% YoY, reaching INR 130.34 Cr in FY 2024-25 compared to INR 50.27 Cr in the previous year. Segment-specific growth percentages for drip and sprinkler systems are not explicitly broken down, but the overall surge is attributed to improved farming productivity and market connectivity.

Profitability Margins

The company achieved a significant turnaround with a PAT margin of 18.36% (INR 23.93 Cr profit) in FY 2024-25, compared to a net loss of INR 5.41 Cr in the previous year. PBT margin stood at 24.66% (INR 32.14 Cr).

EBITDA Margin

Core profitability (PBT margin) reached 24.66% in FY 2024-25, a substantial recovery from the negative margin recorded in the previous fiscal year when the company incurred a PBT loss of INR 7.14 Cr.

Capital Expenditure

The company reported the installation of new machineries to enhance technology and productivity, though the specific absolute INR Cr value for this expenditure was not disclosed in the provided text.

Credit Rating & Borrowing

Non-current borrowings increased by 110.15% in six months, rising from INR 16.16 Cr in March 2025 to INR 33.97 Cr by September 30, 2025. Total non-current liabilities stood at INR 37.14 Cr.

⚙️ Operational Drivers

Capacity Expansion

The company has installed new machineries to cope with changing industry requirements and improve overall technology and productivity; however, current installed capacity in MT/units is not disclosed.

Manufacturing Efficiency

Efficiency is driven by the adoption of new technology and personnel training to tackle difficult market situations, aiming to improve quality and profitability.

📈 Strategic Growth

Growth Strategy

Growth is targeted through direct farmer connectivity, providing quality services and requisite knowledge to maximize farming productivity. The company is also investing in new machinery to improve technology and training employees to handle open market challenges.

Products & Services

Drip irrigation systems, sprinkler systems, and related agricultural productivity services.

Brand Portfolio

R M Drip

Market Expansion

The company is focusing on directly connecting with farmers to provide knowledge and services, aiming to improve farm produce marketability.

🌍 External Factors

Industry Trends

The industry is shifting toward technology-integrated irrigation to maximize farm produce marketability and cope with open market conditions.

Competitive Landscape

The company operates in a competitive economy where human resource utilization and technological upgrades are critical for maintaining market position.

Competitive Moat

The company's moat is built on direct farmer engagement and providing integrated knowledge services alongside hardware, which is sustainable due to the high service requirement in rural markets.

Macro Economic Sensitivity

Highly sensitive to agricultural sector performance and farmer income levels, as the business model focuses on farming productivity.

Consumer Behavior

Farmers are increasingly seeking technological solutions to improve productivity and tackle difficult market situations.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Section 133 of the Companies Act, 2013, and Indian Accounting Standards (AS/Ind AS 34) for financial reporting and revenue recognition.

Taxation Policy Impact

The effective tax rate for FY 2024-25 was approximately 25.5%, with a tax expense of INR 8.21 Cr on a PBT of INR 32.14 Cr.

Legal Contingencies

The company reported INR 0 in pending litigations that would impact its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

A major uncertainty is the discrepancy between audited books and monthly returns filed with banks (e.g., INR 17.59 Cr difference in October), which management attributes to provisional data and unbilled revenue.

Technology Obsolescence Risk

The company mitigates technology risks by installing new machineries to meet the 'changing requirement of the industry'.

Credit & Counterparty Risk

Receivables include 'Unbilled Receivables' where performance obligations are met but invoicing is pending, requiring careful monitoring of ageing schedules.