SPPPOLY - SPP

📊 NSE: SPPPOLY 🏢 Packaging 📅 Last Updated: 12/14/2025 13:39

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single reportable segment. Total income grew 16.08% YoY from INR 93.81 Cr in FY24 to INR 108.90 Cr in FY25.

Profitability Margins

Net Profit Ratio slightly declined from 1.13% in FY24 to 1.05% in FY25. Return on Equity (ROE) decreased from 4.19% to 2.95% due to the increase in average shareholders' equity following the IPO.

EBITDA Margin

Operating profit before working capital changes was INR 7.15 Cr in FY25, representing an EBITDA margin of approximately 6.57% of total income.

Capital Expenditure

Historical capital expenditure for FY25 was INR 2.59 Cr for the purchase of fixed assets.

Credit Rating & Borrowing

Not disclosed in available documents; however, finance costs were INR 1.65 Cr in FY25, and the company utilized IPO proceeds to repay existing loans.

⚙️ Operational Drivers

Raw Materials

Polymer-based raw materials represent the primary input, with the total cost of materials consumed reaching INR 82.01 Cr in FY25, accounting for 75.31% of total income.

Capacity Expansion

Not disclosed in available documents; however, the company proposes to utilize IPO proceeds for working capital requirements to support operational scaling.

Raw Material Costs

Raw material costs were INR 82.01 Cr in FY25. Procurement strategies are influenced by domestic and global demand-supply conditions affecting selling prices of finished goods.

Manufacturing Efficiency

Capacity utilization metrics are not disclosed, but the company employs 355 personnel to manage operations.

📈 Strategic Growth

Growth Strategy

Growth is targeted through the utilization of INR 24.48 Cr raised via IPO for loan repayment and working capital. This strategy aims to reduce finance costs (INR 1.65 Cr in FY25) and improve liquidity to support a 16.08% historical revenue growth trajectory.

Products & Services

Polymer-based finished goods and products.

Market Expansion

The company listed on the NSE Emerge platform on September 17, 2024, to gain access to capital markets for future expansion.

🌍 External Factors

Industry Trends

The industry is evolving with shifts in polymer demand; the company is positioning itself through improved capital structure (Debt-Equity ratio improved 79.84% to 0.15).

Competitive Moat

Moat is derived from a significantly deleveraged balance sheet (DSCR increased 269.48% to 8.25) and access to public capital via the NSE Emerge listing.

Macro Economic Sensitivity

Operations are sensitive to domestic and global economic developments and demand-supply conditions.

Geopolitical Risks

Global demand-supply conditions and potential trade barriers affecting polymer inputs/outputs.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with the Companies Act 2013 and SEBI Listing Obligations; subject to domestic tax laws and industrial relations regulations.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 42%, with Net Profit Before Tax of INR 1.96 Cr and Net Profit After Tax of INR 1.13 Cr.

Legal Contingencies

The company has pending litigations as per Note 31 of the financial statements which would impact its financial position; specific case values are not disclosed.