SEL - Sungarner Energ.

📊 NSE: SEL 🏢 Electric Equipment 📅 Last Updated: 12/14/2025 13:52

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single manufacturing segment which achieved a total revenue of INR 33.64 Cr in FY25, representing a significant 88.5% YoY growth compared to INR 17.85 Cr in FY24.

Profitability Margins

Net Profit Margin was 4.9% in FY25, a slight decrease from 6.0% in FY24. Profit before tax margin stood at 6.9% for FY25 compared to 8.8% in FY24, reflecting higher operational and finance costs despite the revenue surge.

EBITDA Margin

EBITDA Margin was 11.6% in FY25 (INR 3.90 Cr), showing a marginal decline from 11.8% in FY24 (INR 2.11 Cr) due to increased material and employee expenses.

Capital Expenditure

Capital expenditure for the purchase of tangible and intangible assets was INR 2.05 Cr in FY25, a 247% increase from INR 0.59 Cr in FY24, supporting the company's expansion and subsidiary integration.

Credit Rating & Borrowing

Credit rating is not disclosed. Borrowing costs are high, with interest rates on various business loans ranging from 14% to 22% per annum.

⚙️ Operational Drivers

Raw Materials

Material consumed (unspecified raw materials) represents the largest cost component at INR 24.41 Cr, accounting for 72.6% of total revenue in FY25.

Raw Material Costs

Raw material costs increased by 81.2% YoY to INR 24.41 Cr in FY25. The company employs detailed studies and expert interactions to minimize these expenses.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is being pursued through the rehabilitation of the company and the acquisition of subsidiaries. In FY25, the company integrated Seltrik Electric India, Sungarner Green Asset, and two step-down subsidiaries (SG SPV MP-1 and MP-2) to expand its footprint in the electric and green energy sectors.

Products & Services

Manufacturing of power-related products including electric and solar energy solutions.

Brand Portfolio

Sungarner, Seltrik.

Market Expansion

Expansion is targeted through the newly acquired subsidiaries and step-down subsidiaries established in 2024 and 2025.

Strategic Alliances

The company operates through four key subsidiaries/step-down subsidiaries: Seltrik Electric India, Sungarner Green Asset, SG SPV (MP-1), and SG SPV (MP-2).

🌍 External Factors

Industry Trends

The industry is experiencing rapid financial liberalization and a shift toward customer-friendly financial products. The company is positioning itself to benefit from these developments through its expanded subsidiary network.

Competitive Moat

The company's moat consists of its cumulative experience, strong distribution network, and sound internal systems. However, the low equity base (INR 2.32 Cr share capital) is a noted weakness that may impact long-term sustainability against larger competitors.

Macro Economic Sensitivity

Highly sensitive to interest rate fluctuations due to a high-cost debt profile (14-22% rates) and sensitive to the Indian economy's financial liberalization cycle.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act, 2013 and manufacturing standards relevant to the electric and energy sectors.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 28.6%, with a total tax expense of INR 0.66 Cr on a PBT of INR 2.32 Cr.

⚠️ Risk Analysis

Key Uncertainties

Key risks include interest rate volatility, economic cycles, and a low equity base. The high debt-to-equity ratio (1.28x) and negative operating cash flow (INR -5.14 Cr) present significant liquidity risks.