SONAMAC - Sona Machinery

📊 NSE: SONAMAC 🏢 Engineering 📅 Last Updated: 12/14/2025 13:35

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment: manufacturing agro-processing equipment. Revenue from operations grew by 515.2% YoY, increasing from INR 13.27 Cr in FY24 to INR 81.65 Cr in FY25.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates a 52,205 sq. ft. manufacturing facility in Ghaziabad, Uttar Pradesh.

Profitability Margins

Net Profit Margin improved significantly from 0.76% in FY24 to 12.82% in FY25. Profit After Tax (PAT) grew from INR 10.15 Lakhs to INR 10.47 Cr during the same period.

EBITDA Margin

EBITDA margin is approximately 17.9% for FY25, calculated from a Profit Before Tax of INR 14.08 Cr and Finance Costs of INR 58.48 Lakhs against total revenue of INR 81.65 Cr.

Capital Expenditure

The company holds Property, Plant, and Equipment (PPE) valued at INR 22.69 Cr as of March 31, 2025, representing 23.8% of total assets.

Credit Rating & Borrowing

The company maintains a vehicle loan from Mercedes-Benz Financial Services for INR 1.00 Cr at an interest rate of 8.70% PA with a 60-month tenure.

⚙️ Operational Drivers

Raw Materials

Steel and mechanical components for agro-machinery; Cost of Materials Consumed represented 35.6% of total revenue in FY25, amounting to INR 29.04 Cr.

Capacity Expansion

Current facility is 52,205 sq. ft. in Ghaziabad. Planned expansion details are not explicitly quantified in the provided documents.

Raw Material Costs

Raw material costs were INR 29.04 Cr in FY25, up from INR 13.29 Cr in FY24, though as a percentage of revenue, they decreased significantly due to higher scale and pricing power.

Manufacturing Efficiency

The company is an ISO 9001:2015 certified OEM, indicating standardized manufacturing processes for its post-harvest equipment.

📈 Strategic Growth

Expected Growth Rate

91.60%

Growth Strategy

Growth is driven by providing comprehensive end-to-end solutions including engineering, erection, supervision, and machine commissioning. The company transitioned from a proprietorship (Sona Foods India) to a public limited entity to scale operations and leverage IPO proceeds of INR 51.82 Cr for expansion.

Products & Services

Equipment for cleaning, processing, polishing, and packaging of rice, pulses, wheat, spices, and barnyard millet.

Brand Portfolio

Sona Machinery

New Products/Services

The company recently expanded its focus to include specialized equipment for Barnyard Millet processing.

Market Expansion

The company is targeting the post-harvest agro-processing industry with a focus on diversifying its equipment range beyond traditional rice and wheat processing.

🌍 External Factors

Industry Trends

The industry is shifting toward automated, end-to-end post-harvest solutions to reduce wastage. Sona Machinery is positioned as an ISO-certified OEM to capture this shift in the agro-processing machinery market.

Competitive Landscape

Operates as an OEM in the diversified agro-processing equipment manufacturing sector against both organized and unorganized players.

Competitive Moat

The company possesses a 20-year legacy in the industry (originating from Sona Foods India in 2003) and holds ISO 9001:2015 certification, providing a competitive advantage in technical expertise and brand trust.

Macro Economic Sensitivity

Highly sensitive to the agro-processing sector and post-harvest infrastructure spending in India.

Consumer Behavior

Increased demand for processed and packaged grains and spices is driving millers to upgrade to high-tech cleaning and polishing machinery.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Companies Act 2013 and SEBI (LODR) Regulations 2015 following its conversion to a public company and subsequent listing.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 25.6%, with a tax expense of INR 3.61 Cr on a PBT of INR 14.08 Cr.

Legal Contingencies

The secretarial audit and statutory audit reports for FY25 did not report any material pending litigations or adverse court cases.

⚠️ Risk Analysis

Key Uncertainties

The implementation of the inventory module in the new Business Central ERP system mid-year is a key uncertainty, with a potential impact on financial reporting accuracy.