SEJALLTD - Sejal Glass

📊 NSE: SEJALLTD 🏢 Glass & Glass Products 📅 Last Updated: 12/14/2025 12:59

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 48.7% YoY to INR 243.58 Cr in FY 2024-25. Standalone revenue (India operations) grew 5.87% to INR 63.02 Cr. For H1 FY26, total revenue reached INR 182.81 Cr, representing a 59.03% YoY increase.

Geographic Revenue Split

The UAE subsidiary (Sejal Glass & Glass Manufacturing Products LLC) contributed INR 180.65 Cr in FY25, accounting for approximately 74.1% of consolidated turnover. India operations contributed the remaining 25.9%.

Profitability Margins

Consolidated Net Profit Margin improved from 2% in FY24 to 5% in FY25. For H1 FY26, the net profit margin further expanded to 6.86%, with a net profit of INR 12.53 Cr (up 226.3% YoY).

EBITDA Margin

Consolidated EBITDA margin rose from 13% in FY24 to 15% in FY25 (INR 35.34 Cr). In H1 FY26, EBITDA margin reached 16.62% (INR 30.38 Cr), with management targeting over 18% by the end of FY26.

Capital Expenditure

The company is undertaking strategic capital expenditure to strengthen production capabilities at Silvassa and UAE facilities. While specific total INR Cr for future years is not disclosed, the focus is on supporting product diversification into value-added segments.

Credit Rating & Borrowing

The company reported a loan of INR 10.70 Cr received from promoter group entity Dilesh Roadlines India Pvt Ltd during FY 2024-25, with an associated interest expense of INR 1.17 Cr, implying an interest rate of approximately 10.9%.

⚙️ Operational Drivers

Raw Materials

Flat glass, toughened glass components, and digital printing inks. Specific percentage of total cost for each material is not disclosed, but flat glass constitutes the primary input for architectural and value-added products.

Import Sources

Sourced domestically in India and UAE; the company also monitors imports from China which act as a competitive pricing factor in the toughened glass segment.

Key Suppliers

Dilesh Roadlines India Pvt Ltd (Promoter Group) provides logistics-related financial support; specific raw material supplier names are not disclosed in the provided documents.

Capacity Expansion

Current facilities in Silvassa and UAE are operating at 55-60% capacity utilization. Expansion is focused on increasing the mix of value-added products rather than just raw volume.

Raw Material Costs

Raw material costs are managed through capacity utilization improvements to enhance margins. Fluctuations in global glass prices and inflationary pressures are identified as key financial risks.

Manufacturing Efficiency

Fixed asset turnover ratio is reported at over 2x for Indian operations and approximately 3x for the UAE subsidiary. ROCE is currently positioned at nearly 9%.

Logistics & Distribution

The company utilizes promoter group services (Dilesh Roadlines) for financial and likely logistical support, though specific distribution costs as a % of revenue were not provided.

📈 Strategic Growth

Expected Growth Rate

59.03%

Growth Strategy

Growth is driven by expanding the value-added product portfolio (bulletproof and railway glass), increasing market share in 12 international markets via the UAE hub, and exploring inorganic growth opportunities. Management expects EBITDA to exceed 18% through better product mix and higher capacity utilization.

Products & Services

Architectural glass, Toughened glass, Insulated Glass (IG), Laminated glass, Digital printing glass, Bulletproof glass, and Railway-grade glass.

Brand Portfolio

Sejal Glass, Sejal UAE, Glasstech.

New Products/Services

Commercial launch of bulletproof and railway-grade glass is expected soon; digital printing glass (Glasstech) is expected to reach EBITDA breakeven and contribute to margin expansion by FY27.

Market Expansion

Targeting the USA, European, and African markets through the UAE subsidiary, which currently holds a 10% market share in its local region.

Market Share & Ranking

Holds approximately 10% market share in the UAE glass market. Domestic ranking not specified but faces competition from both organized and unorganized sectors.

Strategic Alliances

Sejal Glass Ventures LLP (Associate entity) with a 44.99% capital contribution; Sejal UAE (99.01% subsidiary).

🌍 External Factors

Industry Trends

The flat glass industry is evolving toward energy-efficient and value-added products. The Indian market for railway glass supply is estimated at over INR 500 Cr, presenting a significant niche opportunity.

Competitive Landscape

Faces competition from sizable organized players in the UAE and a mix of organized/unorganized players in India, alongside low-cost imports from China.

Competitive Moat

Moat is built on specialized certifications for value-added products (railway/bulletproof) and a strategic geographic footprint in the UAE providing access to 12 international markets. These are sustainable due to high entry barriers in specialized glass testing.

Macro Economic Sensitivity

Highly sensitive to real estate and infrastructure growth cycles. Demand is supported by government policies like the Energy Conservation Building Code (ECBC).

Consumer Behavior

Increasing demand for energy-efficient building materials and safety glass in infrastructure projects is driving the shift toward IG and laminated products.

Geopolitical Risks

Conflicts in the Middle East are a primary concern, as they can lead to project delays in GCC countries, directly affecting the company's largest revenue-generating subsidiary.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, Ind AS, and international trade policies. The UAE subsidiary must comply with local UAE laws and banking regulations.

Environmental Compliance

Complies with Section 134(3)(m) regarding conservation of energy and technology absorption; specific ESG costs in INR were not disclosed.

Taxation Policy Impact

The UAE subsidiary provided for taxation of INR 0.61 Cr on a profit before tax of INR 7.64 Cr (~8% effective rate). Standalone Indian operations follow standard corporate tax norms.

Legal Contingencies

No specific pending court case values were disclosed, though the company maintains systems for compliance with all applicable laws.

⚠️ Risk Analysis

Key Uncertainties

The resignation of the statutory auditor (CNK and Associates LLP) for the material UAE subsidiary on November 27, 2025, due to conflict of interest with Bank of Baroda, creates a short-term governance transition risk.

Geographic Concentration Risk

High geographic concentration risk with ~74% of turnover originating from the UAE market.

Third Party Dependencies

Dependency on IT vendors for critical manufacturing and financial systems; reliance on Bank of Baroda for credit facilities in the UAE.

Technology Obsolescence Risk

Risk of falling behind in digital printing or energy-efficient glass technology; mitigated by ongoing investment in 'Glasstech' and value-added product R&D.