💰 Financial Performance

Capital Expenditure

The company raised INR 32.68 Cr through an IPO in September 2025, with capital expenditure listed as one of the primary objects for fund utilization. As of September 30, 2025, INR 7.938 Cr (24.28% of gross proceeds) has been utilized across various objects.

Credit Rating & Borrowing

Infomerics Valuation and Rating Limited serves as the company's Monitoring Agency and Credit Rating Agency. Unutilized IPO funds of INR 15 Cr are currently deployed in Fixed Deposits across six accounts of INR 2.50 Cr each, earning a return of 6.60% with maturity dates in March 2027.

⚙️ Operational Drivers

Raw Materials

Spent solvents (recycled for industrial reuse) represent the primary input for the business.

📈 Strategic Growth

Growth Strategy

The company aims to achieve growth by utilizing INR 32.68 Cr in IPO proceeds to fund a projected INR 42.87 Cr working capital requirement for FY 2025-26. This capital supports the strategy of offering longer credit periods to customers to increase business volume in the recycled and purified solvent market.

Products & Services

Purified solvents (recycled from spent solvents) and trading of purified solvents for industrial reuse.

Brand Portfolio

Snehaa Organics.

🌍 External Factors

Industry Trends

The industry is shifting toward circular economy practices, specifically the recycling of industrial spent solvents. Snehaa is positioned to benefit from this trend by providing industrial reuse solutions, though it must navigate strict SEBI ICDR and LODR regulatory frameworks as a newly listed SME.

Competitive Moat

The company's moat is based on its specialized capability to recycle spent solvents into purified industrial-grade solvents, providing a cost-advantaged and sustainable alternative to virgin chemical production.

⚖️ Regulatory & Governance

Industry Regulations

The company is governed by SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It is currently exempt from Regulation 27(2) Corporate Governance reporting due to its listing on the NSE Emerge (SME) platform.

Environmental Compliance

The company's core business of recycling spent solvents is subject to industrial environmental standards, though specific compliance costs are not disclosed.

Legal Contingencies

The company received an Administrative Warning from SEBI (SEBI/HO/CFD/SEC-3/0W/P/2025/31087/1) on December 12, 2025, for non-compliance with ICDR Regulations regarding a promoter interview published on August 30, 2025, during the IPO period.

⚠️ Risk Analysis

Key Uncertainties

Key risks include regulatory scrutiny following the SEBI administrative warning and the high dependency on efficient working capital management to sustain the INR 42.87 Cr requirement for FY26.

Geographic Concentration Risk

Operations are concentrated in Telangana, with the registered office in Hyderabad (Rangareddi) and the factory in Sangareddy District (Bollaram Village).

Credit & Counterparty Risk

The company faces significant credit counterparty risk as it offers 'longer credit periods' to customers, leading to funds being blocked in trade receivables.