💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, 'Paper-Trading'. Revenue from operations declined by 29.57% YoY, falling from INR 48.56 Cr in FY23 to INR 34.19 Cr in FY24. Total revenue saw a sharper decline of 64.92% YoY, dropping from INR 134.23 Cr to INR 47.09 Cr, primarily due to an 84.95% collapse in 'Other Income'.

Geographic Revenue Split

Not disclosed in available documents, though the company is headquartered and operates primarily out of Ahmedabad, Gujarat.

Profitability Margins

Profitability is severely compromised; the company reported a 'negative financial situation'. In FY24, total expenses of approximately INR 281.80 Cr far exceeded total revenue of INR 47.09 Cr, leading to deep net losses. This was driven by a massive surge in 'Other Expenses' to INR 139.44 Cr and an inventory-related charge of INR 109.30 Cr.

EBITDA Margin

EBITDA margin is deeply negative. Core operational profitability is non-existent as 'Other Expenses' (INR 139.44 Cr) and 'Changes in Inventories' (INR 109.30 Cr) represent 296% and 232% of total revenue respectively.

Capital Expenditure

Historical records for Property, Plant and Equipment are maintained, but specific planned CAPEX for FY25-26 is not disclosed in available documents.

Credit Rating & Borrowing

As of September 30, 2025, the company has significant debt with Non-current Borrowings of INR 118.06 Cr and Current Financial Borrowings of INR 51.43 Cr. Finance costs were INR 0.45 Cr in FY24, a decrease from INR 3.51 Cr in FY23, likely due to debt restructuring or reduced utilization.

⚙️ Operational Drivers

Raw Materials

Trading goods primarily consisting of Paper and paper-related products, which accounted for INR 33.06 Cr in purchases during FY24 (96.7% of operational revenue).

Capacity Expansion

As a trading entity, the company does not have traditional manufacturing capacity; expansion would relate to warehouse throughput or trading volume, which is currently declining.

Raw Material Costs

Purchases of trading goods stood at INR 33.06 Cr in FY24. The cost of goods sold is heavily impacted by a massive 'Change in Inventories' of INR 109.30 Cr, suggesting a significant write-down or liquidation of stock.

Manufacturing Efficiency

Not applicable as the company identifies 'Paper-Trading' as its only business segment.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

0%

Growth Strategy

The documents do not outline a clear growth strategy; instead, they highlight a 'negative financial situation' and a significant contraction in revenue and other income. Management's focus appears to be on maintaining internal controls and statutory compliance amidst financial distress.

Products & Services

Trading of various grades of Paper and paper products.

Brand Portfolio

Shrenik.

🌍 External Factors

Industry Trends

The paper industry is facing a shift toward digitalization, which may reduce demand for traditional printing paper, though packaging paper demand remains a potential growth area. The company's current positioning is weak due to its negative financial situation.

Competitive Landscape

The company operates in the fragmented paper trading market; competitors are not named but include other large-scale paper distributors and direct-to-market mill sales.

Competitive Moat

The company lacks a strong moat as a pure-play trader; it faces high competition and has shown a significant decline in revenue and massive operational losses, suggesting low sustainable competitive advantage.

Macro Economic Sensitivity

Highly sensitive to industrial output and education sector cycles which drive paper demand.

Consumer Behavior

Shift toward digital media and paperless offices is a long-term threat to the core trading business.

⚖️ Regulatory & Governance

Industry Regulations

Subject to standard commercial trading regulations and GST compliance in India. The company transitioned to IND-AS reporting effective April 1, 2017.

Taxation Policy Impact

The company reported a net loss before tax of approximately INR 234.71 Cr in FY24, resulting in no current tax liability for that period.

Legal Contingencies

The company was noted for non-compliance with SEBI (LODR) Regulations 17, 18, and 19 (related to Board and Committee compositions) during the March Quarter of 2024.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the company's ability to continue as a 'going concern' given the massive losses (INR 234.71 Cr loss before tax in FY24) and the 'negative financial situation' explicitly mentioned by management.

Geographic Concentration Risk

High concentration in Gujarat, India, where the registered office and primary operations are located.

Third Party Dependencies

High dependency on paper mills for supply and credit terms, which may be at risk due to the company's financial health.

Technology Obsolescence Risk

The shift to digital documentation poses a significant technology-driven risk to the long-term demand for paper trading products.

Credit & Counterparty Risk

The company faces significant credit risk; trade receivables and the quality of the loan book (if any) are critical given the high debt levels of INR 169.49 Cr.