SIL - Standard Inds.

📊 NSE: SIL 🏢 Trading 📅 Last Updated: 12/14/2025 13:42

💰 Financial Performance

Revenue Growth by Segment

For the 6 months ended September 30, 2025, the Trading segment revenue grew 60.6% YoY to INR 1,407.37 Lakhs from INR 876.20 Lakhs. The Manufacturing segment revenue grew 7.7% YoY to INR 280.40 Lakhs from INR 260.32 Lakhs. Total revenue from operations for FY 2024-25 was INR 2,234.98 Lakhs, a 17.3% increase from INR 1,905.48 Lakhs in FY 2023-24.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates out of Mumbai, Maharashtra.

Profitability Margins

The company reported a Loss Before Tax of INR 666.28 Lakhs for Q2 FY26 compared to a loss of INR 137.69 Lakhs in the corresponding previous quarter, representing a significant widening of losses. Net Profit Margin is currently negative due to operational losses and high unallocable expenses of INR 3,628.48 Lakhs.

EBITDA Margin

Core profitability is under pressure; the Trading segment generated a profit of INR 65.06 Lakhs for 6M FY26 (4.6% margin), while the Manufacturing segment generated a marginal profit of INR 2.79 Lakhs (1% margin). The Property Division recorded a loss of INR 83.99 Lakhs.

Capital Expenditure

Not explicitly disclosed as a forward-looking figure, but the company holds significant investment in leasehold rights to salt pans through its subsidiary, Standard Salt Works Limited, valued at INR 5,969.82 Lakhs.

Credit Rating & Borrowing

The company reported interest on loans from NBFCs and other finance costs in its cash flow statement. Total liabilities increased 44.1% to INR 4,395.82 Lakhs as of September 30, 2025, from INR 3,050.20 Lakhs in March 2025.

⚙️ Operational Drivers

Raw Materials

Specific raw material names for manufacturing are not listed, but the business involves salt pans (Standard Salt Works) and general trading activities.

Capacity Expansion

Current focus is on the long-term strategic nature of leasehold rights to salt pans. No specific capacity expansion in MT or units is provided in the text.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but manufacturing segment results show low profitability (INR 2.79 Lakhs profit on INR 280.40 Lakhs revenue), suggesting high input or operational costs.

Manufacturing Efficiency

Manufacturing segment revenue is relatively small (INR 280.40 Lakhs for 6M FY26) compared to Trading (INR 1,407.37 Lakhs), indicating lower scale or efficiency in the manufacturing arm.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is focusing on liquidating assets in its Property Division (valued at INR 6,478.63 Lakhs) based on market conditions to generate liquidity. It also maintains a long-term strategic investment in Standard Salt Works Limited to leverage growth prospects in the salt business.

Products & Services

Salt (via subsidiary Standard Salt Works Limited), Trading of various goods, and Property development/liquidation services.

Brand Portfolio

Standard Industries Limited, Standard Salt Works Limited.

Strategic Alliances

Wholly owned subsidiary: Standard Salt Works Limited (Investment of INR 5,969.82 Lakhs).

🌍 External Factors

Industry Trends

The company is shifting away from active manufacturing (low revenue contribution) toward trading and asset liquidation. The salt industry is viewed as a 'long term strategic' area.

Competitive Landscape

The company operates in Trading, Manufacturing, and Property, facing competition in each fragmented sector.

Competitive Moat

The primary moat is the ownership of leasehold rights to salt pans through its subsidiary, which are considered long-term strategic assets with growth prospects.

Macro Economic Sensitivity

The Property Division is highly sensitive to real estate market conditions, as the company intends to liquidate these assets based on 'market condition'.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Salt pan operations are subject to specific leasehold regulations.

Taxation Policy Impact

The company has material 'Uncertain Tax Positions' including matters under dispute which involve significant judgment for outcome determination (Note 39).

Legal Contingencies

The company has pending litigations disclosed in Note 39. Auditors highlighted 'Evaluation of Uncertain Tax Positions' as a Key Audit Matter due to the significant judgment required to estimate potential liabilities.