SMARTLINK - Smartlink Hold.

📊 NSE: SMARTLINK 🏢 Finance & Investments 📅 Last Updated: 12/14/2025 13:30

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 8.25% YoY to INR 21,452.63 lakhs in FY25, primarily driven by the Networking/IT Products segment.

Profitability Margins

Net Profit Margin declined from 8.25% in FY24 to (0.36)% in FY25 due to higher product development, legal, and professional costs. However, H1 FY26 consolidated Profit Before Tax surged 391.88% to INR 557.30 lakhs compared to INR 113.30 lakhs in H1 FY25.

EBITDA Margin

Not explicitly disclosed, but Interest Coverage Ratio fell 93.45% to 0.48 in FY25, indicating a significant squeeze on operating profitability relative to interest obligations.

Capital Expenditure

Consolidated Property, Plant and Equipment (PPE) increased by INR 114.18 lakhs to INR 1,711.85 lakhs as of September 30, 2025, compared to INR 1,597.67 lakhs as of March 31, 2025.

Credit Rating & Borrowing

Debt Equity Ratio improved to 0.00 in FY25 from 0.04 in FY24 following the repayment of borrowings.

⚙️ Operational Drivers

Raw Materials

Networking and IT hardware components (specific names not listed) represent the primary input for the Digisol product line.

Raw Material Costs

COGS increased in FY25 due to higher revenue; however, the Inventory Turnover Ratio improved 125% to 16.81, reflecting better inventory management.

Manufacturing Efficiency

Inventory Turnover Ratio improved from 7.46 to 16.81 (125% increase) in FY25, indicating high efficiency in moving stock.

📈 Strategic Growth

Expected Growth Rate

8.25%

Growth Strategy

Focusing on HR innovations and talent management to drive productivity in the Networking/IT Products segment via the 100% subsidiary Digisol Systems Limited.

Products & Services

Networking/IT Products including routers, switches, and other networking hardware.

Brand Portfolio

Digisol

Strategic Alliances

Digisol Systems Limited is a 100% subsidiary of Smartlink Holdings Limited.

🌍 External Factors

Industry Trends

The Networking/IT Products industry is evolving with a focus on hybrid work cultures and digital transformation, positioning the company's Digisol brand for demand growth.

Competitive Moat

The 'Digisol' brand and the company's established presence in the Networking/IT segment serve as a competitive advantage, though sustainability is challenged by high operating costs.

Macro Economic Sensitivity

The company operates in a VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) world, making it sensitive to rapid shifts in technology and talent markets.