SHUBHSHREE - Shubhshree

📊 NSE: SHUBHSHREE 🏢 Power Generation And Supply 📅 Last Updated: 12/14/2025 13:20

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single reportable segment: manufacturing and trading of biomass fuels. Operating revenue in FY 2024-25 grew by 72.77% compared to FY 2023-24 and 177.50% compared to FY 2022-23. For H1 FY26, revenue reached INR 9,604.6 Lakhs, representing a 24.1% YoY growth from INR 7,736.4 Lakhs.

Geographic Revenue Split

Revenue is heavily concentrated in Northern India: Rajasthan (50.7%), Punjab (20.9%), Haryana (18.9%), Others (3.8%), Uttar Pradesh (2.9%), and Madhya Pradesh (2.8%).

Profitability Margins

Net Profit Margin improved from 3.51% in FY 2023-24 to 4.98% in FY 2024-25, a 41.9% increase. However, H1 FY26 PAT margin stood at 4.4%, slightly lower than the FY25 annual average due to seasonal headwinds and strategic investments.

EBITDA Margin

EBITDA margin for H1 FY26 was 6.3%, with EBITDA increasing 20.9% YoY to INR 601.7 Lakhs. The operating margin in FY 2024-25 was 6.7%, showing relative stability despite rapid scaling.

Capital Expenditure

The company is executing a strategic expansion to increase capacity to 1,000 MT/day through five new plants. While specific INR expenditure for these plants is not disclosed, the company has already expanded manufacturing capacity threefold to capitalize on the 20% biofuel blending mandate.

Credit Rating & Borrowing

The company maintains a low Debt-to-Equity ratio of 0.3. New bank facilities were recently secured to support working capital for ongoing projects, which contributed to elevated finance costs in H1 FY26.

⚙️ Operational Drivers

Raw Materials

Agricultural waste (recycled into clean energy) is the primary raw material, used to produce biomass briquettes and pellets. Specific cost percentages per material type are not disclosed.

Import Sources

Sourcing is primarily domestic and localized to Northern India (Rajasthan, Punjab, Haryana) to minimize logistics costs and improve margins by placing plants closer to raw material sources.

Key Suppliers

Not disclosed in available documents; however, the company engages with over 5,000 employed farmers for biomass collection.

Capacity Expansion

Current supply capacity is 1,000+ tonnes per day. Planned expansion involves five new plants to solidify this 1,000 MT/day capacity and support India's 20% biofuel blending mandate.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company utilizes a structured integrated supply chain to manage costs in a fragmented market.

Manufacturing Efficiency

Manufacturing capacity has expanded threefold. The company has supplied over 3,00,000 tonnes of briquettes and pellets to date.

Logistics & Distribution

The company focuses on regional presence in Northern India to optimize distribution, though specific cost percentages are not disclosed.

📈 Strategic Growth

Expected Growth Rate

50%

Growth Strategy

Growth will be achieved by doubling the topline over the next two years through five new manufacturing plants, a 34% stake investment in Biosteam LLP, and securing long-term offtake deals with industrial clients.

Products & Services

Biomass briquettes and biomass pellets used as solid bioenergy fuel.

Brand Portfolio

Shubhshree Biofuels Energy.

New Products/Services

Expansion into new geographies and the incorporation of Biosteam LLP are expected to drive future revenue, though specific contribution percentages are not disclosed.

Market Expansion

Targeting deeper industrial adoption and expansion beyond the current 1,500+ client base by leveraging the shift toward clean energy.

Market Share & Ranking

The company identifies as India's only listed company exclusively focused on solid bioenergy, positioning it as a first-mover in a fragmented market.

Strategic Alliances

Acquiring a 34% stake in Biosteam LLP (proposed LLP) to expand operational footprint.

🌍 External Factors

Industry Trends

The industry is evolving from a fragmented, unorganized sector to a structured one, driven by MNRE capital subsidies and the national mandate for 20% biofuel blending.

Competitive Landscape

Market is dominated by unorganized, small-scale players with limited scalability; Shubhshree competes through structured operations and technology.

Competitive Moat

Moat is built on being a 'first-mover' as a listed entity, having an integrated supply chain, and established relationships with 5,000+ farmers, which are difficult for small-scale players to replicate.

Macro Economic Sensitivity

Highly sensitive to government environmental policies and the 20% biofuel blending mandate which drives industrial demand.

Consumer Behavior

Industrial consumers are shifting toward sustainable fuels due to regulatory pressure and long-term cost benefits of biomass over conventional fuels.

Geopolitical Risks

Not disclosed as a primary factor due to the localized nature of biomass sourcing.

⚖️ Regulatory & Governance

Industry Regulations

Operations are influenced by India's 20% biofuel blending mandate and MNRE financial incentives for plants addressing stubble burning.

Environmental Compliance

The company benefits from MNRE capital subsidies for pellet units and electricity duty exemptions, which are contingent on maintaining green energy standards.

Taxation Policy Impact

Not disclosed as a specific percentage.

Legal Contingencies

The auditor reported no material misstatements or instances of audit trail tampering for the year ended March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Market acceptance of biomass vs conventional fuels and the stabilization of new manufacturing operations are key risks that may impact near-term profitability.