💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: 'Manufacturing of Agricultural Products'. Standalone revenue for FY 2024-25 was INR 105.67 Cr, representing an 18.48% decrease from INR 129.63 Cr in FY 2023-24.

Geographic Revenue Split

Approximately 88% of revenue is derived from international markets (exports), with the remaining 12% coming from domestic operations in India.

Profitability Margins

Net profit ratio improved significantly from 2% in FY 2023-24 to 9% in FY 2024-25. Standalone Net Profit grew by 352.78% YoY to INR 9.32 Cr.

EBITDA Margin

Profit Before Tax (PBT) margin for standalone operations rose from 2.32% (INR 3.01 Cr) in FY 2023-24 to 12.38% (INR 13.09 Cr) in FY 2024-25, indicating a 334.54% increase in core operational profitability.

Capital Expenditure

Property, Plant, and Equipment (PPE) stood at INR 17.64 Cr as of September 30, 2025. Historical standalone purchase of fixed assets was INR 0.23 Cr in H1 FY26 compared to INR 12.60 Cr in H1 FY25.

Credit Rating & Borrowing

The company's credit metrics are expected to improve over the medium term, though it remains susceptible to raw material price volatility and forex fluctuations. Total debt-to-equity ratio was 1.32 as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Agricultural commodities (including raw materials for agricultural products) represent the primary input cost.

Import Sources

Sourced primarily from domestic farmers in India, particularly in the Gujarat region near Rajkot.

Key Suppliers

The company maintains direct reach with farmers to provide quality services and knowledge, acting as its primary procurement base.

Raw Material Costs

Raw material costs are highly volatile due to climatic conditions; cost of materials consumed was INR 43.80 Cr for H1 FY26, representing 93.8% of revenue for that period.

Manufacturing Efficiency

Inventory turnover ratio decreased from 19.58 in FY 2023-24 to 5.87 in FY 2024-25, indicating a slowdown in inventory clearing cycles.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company plans to achieve growth by operating on a larger scale to capture a higher portion of market demand and expanding its footprint into international territories beyond India.

Products & Services

Processed and manufactured agricultural products.

Market Expansion

Targeting expansion in international territories to diversify its geographical revenue base.

Strategic Alliances

The company has two 100% owned subsidiaries: Saumesvar International Private Limited and Svar Industries Private Limited.

🌍 External Factors

Industry Trends

The industry is shifting toward higher international demand for Indian agricultural products, though it remains disrupted by unpredictable global weather patterns.

Competitive Landscape

Operates in a fragmented agricultural manufacturing market with significant competition from both domestic and international players.

Competitive Moat

Moat is built on direct farmer relationships and knowledge sharing, which provides a stable procurement base, though this is vulnerable to competitors offering higher prices.

Macro Economic Sensitivity

Highly sensitive to agricultural GDP and inflation in raw material prices which directly impact procurement costs.

Geopolitical Risks

International expansion plans are subject to global trade policies and potential barriers in new territories.

⚖️ Regulatory & Governance

Industry Regulations

Subject to agricultural export policies and quality standards for international trade.

Taxation Policy Impact

Standalone tax expense for FY 2024-25 was INR 3.77 Cr on a PBT of INR 13.09 Cr, reflecting an effective tax rate of approximately 28.8%.

Legal Contingencies

The statutory auditors issued an unmodified report, indicating no material undisclosed legal contingencies or misstatements.

⚠️ Risk Analysis

Key Uncertainties

Climatic unpredictability and forex volatility are the primary business risks, with potential to impact margins by over 5-10% annually.

Geographic Concentration Risk

88% revenue concentration in international markets; domestic revenue is concentrated in India.

Third Party Dependencies

High dependency on a small group of customers (72.41% revenue from top 10).

Technology Obsolescence Risk

Low risk due to the nature of agricultural processing, but digital transformation in supply chain tracking is an ongoing process.

Credit & Counterparty Risk

Trade receivables stood at INR 35.00 Cr as of September 30, 2025, representing a significant portion of current assets (62.9%).