SHREYANIND - Shreyans Inds.

📊 NSE: SHREYANIND 🏢 Paper 📅 Last Updated: 12/14/2025 13:18

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations decreased by 11.78% YoY, falling from INR 699.17 Cr in FY24 to INR 616.77 Cr in FY25, primarily due to a decline in volume and Net Sales Realizations (NSR) in the Writing and Printing Paper (WPP) segment.

Geographic Revenue Split

Not specifically disclosed in available documents, though the company operates two manufacturing plants in Punjab (Ahmedgarh and Banah).

Profitability Margins

Net Profit Ratio declined from 12.58% in FY24 to 8.17% in FY25. Return on Equity (ROE) dropped significantly by 51.04%, from 25.53% to 12.50%, while Return on Capital Employed (ROCE) fell from 27.58% to 14.81% due to lower operational profits.

EBITDA Margin

EBITDA margin (before other income) contracted from 13.96% in FY24 to 11.27% in FY25, representing a YoY decline of 28.76% in absolute EBITDA value (from INR 97.59 Cr to INR 69.52 Cr).

Capital Expenditure

The company planned a capital expenditure of approximately INR 13.00 Cr in FY24, focused on quality improvements for Writing and Printing Paper, funded entirely through internal accruals.

Credit Rating & Borrowing

Long-term bank facilities (INR 30.45 Cr) and Fixed Deposits (INR 1.46 Cr) are rated 'CARE A-; Stable'; Short-term facilities (INR 55.00 Cr) are rated 'CARE A2+'. Ratings were reaffirmed in November 2025.

⚙️ Operational Drivers

Raw Materials

The company utilizes agricultural residues and pulp for Writing and Printing Paper (WPP) production. Specific percentage of total cost per material is not disclosed, but margins are highly susceptible to raw material price volatility.

Import Sources

Raw materials are primarily sourced from regions proximal to the manufacturing plants in Ahmedgarh (Distt. Malerkotla) and Banah (Distt. S.B.S Nagar), Punjab.

Capacity Expansion

The company operates two plants: Shreyans Papers and Shree Rishabh Papers. While initial capacity was 10,000 MTPA, current focus is on quality-led capex (INR 13 Cr) rather than specific MTPA volume expansion.

Raw Material Costs

Profitability is constrained by raw material price volatility. While input prices softened in FY24, the benefit was offset by a decline in Net Sales Realizations (NSR) in FY25.

Manufacturing Efficiency

Decrease in operational profit led to a downfall in the Debt Service Coverage Ratio (DSCR) from 7.50x to 4.99x and Interest Service Coverage Ratio (ISCR) from 30.11x to 19.05x in FY25.

Logistics & Distribution

The company leverages its proximity to raw material sources in Punjab to optimize distribution and procurement costs.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth is targeted through a 20% scale improvement and maintaining PBILDT margins above 15%. This will be achieved via quality-focused capex (INR 13 Cr), leveraging an established distribution network, and utilizing its 42-year track record in the WPP industry.

Products & Services

Writing and Printing Paper (WPP).

Brand Portfolio

Shreyans Papers and Shree Rishabh Papers.

New Products/Services

Focus is on quality improvement of existing WPP products to sustain market position.

Market Expansion

The company utilizes a well-established distribution network to maintain its market presence in the competitive WPP segment.

🌍 External Factors

Industry Trends

The Writing and Printing Paper industry is evolving with a focus on quality and sustainable sourcing. The industry is currently facing pressure from fluctuating realizations despite some softening in input costs.

Competitive Landscape

The industry is characterized by intense competition from both large organized players and unorganized local manufacturers.

Competitive Moat

The company's moat is built on 42+ years of experience, established promoter reputation, and strategic plant locations near raw material sources in Punjab, providing a sustainable cost advantage in logistics.

Macro Economic Sensitivity

Highly sensitive to industrial cycles and raw material price volatility which impacts PBILDT margins.

Consumer Behavior

Demand for WPP is driven by the education sector and commercial printing requirements.

Geopolitical Risks

Global paper demand-supply dynamics and international pulp prices impact domestic Net Sales Realizations.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to environmental norms and manufacturing standards applicable to the paper industry. The company maintains compliance with SEBI (LODR) and Companies Act 2013.

Environmental Compliance

Not specifically disclosed in INR values, though the company operates in a regulated industry regarding pollution and emissions.

Taxation Policy Impact

The company followed standard Indian Accounting Standards; Profit After Tax (PAT) for FY25 was INR 50.39 Cr on a PBT of INR 67.75 Cr, implying an effective tax rate of approximately 25.6%.

Legal Contingencies

The company has exposures toward litigations relating to various matters as of March 31, 2025. These are classified as Key Audit Matters due to the significant management judgment required to determine potential economic outflows.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the volatility of Net Sales Realizations (NSR), which caused a 42.72% drop in PAT in FY25. A decline in unencumbered mutual fund investments is a negative rating sensitivity factor.