SAMPANN - Sampann Utpadan

📊 NSE: SAMPANN 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 12:44

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 29.65% YoY to INR 92.64 Cr in FY25, up from INR 71.45 Cr in FY24. Segment-specific growth percentages were not disclosed, but the increase was primarily driven by higher demand and the addition of Butyl Reclaimed Rubber products.

Geographic Revenue Split

Not disclosed in available documents, though the company is headquartered in Vadodara, Gujarat, and operates primarily within the Indian manufacturing sector.

Profitability Margins

The company achieved a significant turnaround with a consolidated net profit of INR 3.98 Cr in FY25 (4.3% net margin) compared to a loss of INR 0.87 Cr in FY24. Standalone PBT stood at INR 5.39 Cr, heavily supported by exceptional income.

EBITDA Margin

Core operating profit before finance costs, depreciation, and exceptional items was INR 3.99 Cr (4.3% margin). Core profitability was bolstered by an exceptional gain of INR 8.11 Cr from the sale of Extended Producer Responsibility (EPR) certificates.

Capital Expenditure

The company invested in capacity expansion for Butyl Reclaimed Rubber, reaching an installed capacity of 300 MT per month. Total fixed asset purchases in FY25 amounted to approximately INR 1.51 Cr.

Credit Rating & Borrowing

Infomerics reaffirmed ratings at IVR BB/Stable (Long Term) and IVR A4 (Short Term) in March 2025. Total rated bank facilities were INR 18.21 Cr. The company subsequently withdrew these ratings on July 2, 2025.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include scrap rubber and butyl rubber, which are essential for the production of reclaimed rubber products. Specific cost percentages for each material were not disclosed.

Capacity Expansion

Current installed capacity for the new Butyl Reclaimed Rubber product is 300 MT per month. The company achieved a capacity utilization of 26.67% in its first year of operation for this segment.

Raw Material Costs

Raw material costs are a significant driver, with the company noting susceptibility to price volatility. Total cost of operations (including materials) was INR 93.84 Cr in FY25, representing 101% of operational revenue before exceptional income.

Manufacturing Efficiency

Capacity utilization for the newly added Butyl Reclaimed Rubber line stood at 26.67% for FY24. Efficiency is expected to improve as the product gains market traction.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth will be achieved by ramping up utilization of the 300 MT/month Butyl Reclaimed Rubber capacity from its current 26.67% level. The company raised INR 20.85 Cr in September 2025 through the conversion of 82,00,000 warrants into equity to fund operations and expansion. Strategic focus remains on the circular economy through rubber reclaiming and EPR certificate monetization.

Products & Services

Butyl Reclaimed Rubber and other reclaimed rubber products sold to the tire and industrial rubber manufacturing industries.

Brand Portfolio

Sampann Utpadan India Limited (formerly S. E. Power Limited).

New Products/Services

Butyl Reclaimed Rubber was recently launched, contributing to the 29.65% YoY revenue growth seen in FY25.

Market Expansion

The company is targeting increased market share in the reclaimed rubber industry by utilizing its expanded capacity in Vadodara, Gujarat.

Strategic Alliances

The company operates through its 100% wholly-owned subsidiary, Shubham Electrochem Limited.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable manufacturing and circular economy practices. The implementation of EPR (Extended Producer Responsibility) norms in India has created a new revenue stream for recyclers, as evidenced by the company's INR 8.11 Cr income from EPR certificates.

Competitive Landscape

The company faces intense competition from both organized and unorganized players in the reclaimed rubber and recycling industry.

Competitive Moat

The moat is based on the extensive experience of the promoters and early adoption of EPR certificate trading. Sustainability depends on maintaining high capacity utilization and navigating raw material price cycles.

Macro Economic Sensitivity

Highly sensitive to industrial production growth and automotive sector demand, which drives the reclaimed rubber market.

Consumer Behavior

Increasing preference among industrial customers for recycled/reclaimed materials to meet sustainability targets.

Geopolitical Risks

Susceptibility to global rubber price trends which are influenced by international trade and geopolitical stability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by pollution control board norms and the Extended Producer Responsibility (EPR) framework for waste rubber/tires.

Environmental Compliance

The company is a beneficiary of environmental regulations, generating INR 8.11 Cr from the sale of EPR certificates in FY25.

Taxation Policy Impact

The company paid a minimal tax of INR 1.40 Lakhs in FY25 despite a PBT of INR 5.39 Cr, likely due to the utilization of brought-forward losses (accumulated losses stood at INR 40.78 Cr).

Legal Contingencies

No significant or material orders were passed by regulators or courts during the year that would impact the company's status as a going concern.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the volatility of raw material prices and the market liquidity/pricing of EPR certificates, which significantly impacted FY25 profitability.