SHRIAHIMSA - Shri Ahimsa

📊 NSE: SHRIAHIMSA 🏢 Other Food Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 22.7% YoY to INR 95.81 Cr (9,580.61 Lakhs) in FY 2024-25, primarily driven by higher volume growth of manufactured products in the caffeine processing segment.

Geographic Revenue Split

Shri Ahimsa is a primary exporter, supplying materials to more than 14 countries, which provides geographical diversification and reduces concentration risk in any single region.

Profitability Margins

Net Profit Margin stood at 22.86% in FY 2024-25, a slight decrease from 23.95% in FY 2023-24. Operating margins are expected to remain healthy at 25-30% over the medium term due to the company's ability to pass on cost increases in its niche segment.

EBITDA Margin

EBITDA Margin was 33.68% in FY 2024-25, compared to 35.17% in FY 2023-24, representing a YoY compression of 1.49 percentage points despite an absolute EBITDA growth of 17.5% to INR 32.27 Cr.

Capital Expenditure

The company has planned a capital expenditure of INR 35 Cr for its wholly-owned subsidiary, Shri Ahimsa Healthcare Private Limited (SAHPL), which is expected to become operational in fiscal 2027.

Credit Rating & Borrowing

The company's long-term bank facilities are rated 'Crisil BBB/Stable' (Reaffirmed May 2025). Borrowing costs are supported by a healthy interest coverage ratio of 34 times and low reliance on external funds.

⚙️ Operational Drivers

Raw Materials

The primary raw materials are tea waste and crude caffeine (a by-product of coffee processing). Specific percentage of total cost for each is not disclosed, but they represent the bulk of operational inputs.

Import Sources

A large portion of the raw material requirement is imported from overseas markets to ensure adequate supply for servicing international orders.

Key Suppliers

Not disclosed in available documents, though the company maintains long-lasting relationships with multiple vendors to ensure uninterrupted flow of inventory.

Capacity Expansion

Current capacity is being scaled through strategic investments in subsidiary SAHPL, with an INR 35 Cr expansion project aimed at increasing installed capacity for core products by fiscal 2027.

Raw Material Costs

Raw material costs are a significant driver of the working capital-intensive operations; the company manages these through strategic sourcing and vendor diversification to mitigate price fluctuations.

Manufacturing Efficiency

Return on Capital Employed (ROCE) was healthy at 28% in fiscal 2025 and is projected to remain between 20-25% over the medium term, reflecting sound operating efficiency.

📈 Strategic Growth

Expected Growth Rate

35%

Growth Strategy

Growth will be achieved by expanding manufacturing capacity via the INR 35 Cr SAHPL project, increasing global footprint in 14+ countries, and investing in R&D to improve process excellence and product quality.

Products & Services

The company processes and sells natural caffeine derived from tea waste and crude caffeine.

Brand Portfolio

Shri Ahimsa, Shri Ahimsa Naturals.

New Products/Services

The company is continuously adding new products to its portfolio to drive turnover above the INR 100 Cr mark in fiscal 2026.

Market Expansion

Plans involve further penetrating existing key markets while expanding into new geographies by building a strong local presence and acquiring new global customers.

🌍 External Factors

Industry Trends

The industry is characterized by a niche caffeine processing segment with a growing demand for natural ingredients; the company is positioning itself through technological improvements and capacity scaling.

Competitive Landscape

The company operates in a niche segment with high profitability, competing primarily on product quality and process technology.

Competitive Moat

The company's moat is built on the three-decade-long experience of its promoters and established relationships with overseas customers, which are sustainable due to high entry barriers in niche chemical processing.

Macro Economic Sensitivity

The company is sensitive to global economic slowdowns which could negatively impact export performance across its 14+ target countries.

Geopolitical Risks

Geopolitical tensions and trade disruptions are identified as key risks that may impact the company's ability to source crude caffeine and export finished products.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to international quality standards and certifications required for exporting caffeine products to premier global organizations.

Legal Contingencies

Pending matters include an advance payment of INR 21 Lakhs for agricultural land where the agreement is yet to be executed, and an insurance claim of INR 58.49 Lakhs lodged with United Insurance Company.

⚠️ Risk Analysis

Key Uncertainties

Key uncertainties include the volatility of raw material prices and the successful commissioning of the SAHPL subsidiary's operations by fiscal 2027.

Geographic Concentration Risk

While exporting to 14+ countries, the company remains focused on international markets for the majority of its revenue growth.

Third Party Dependencies

There is a significant dependency on a limited number of crude caffeine suppliers, which the company is actively trying to mitigate by broadening its supplier network.