SRIVASAVI - Srivasavi Adhes.

📊 NSE: SRIVASAVI 🏢 Packaging 📅 Last Updated: 12/14/2025 13:41

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue from operations grew 31.78% YoY to INR 52.91 Cr in H1 FY26 from INR 40.15 Cr in H1 FY25. Segment-specific percentage splits are not disclosed in available documents.

Geographic Revenue Split

Not disclosed in available documents, though manufacturing is concentrated in Karnataka.

Profitability Margins

Net Profit Margin for FY25 was 7.54%, an improvement from 6.65% in FY24. However, H1 FY26 standalone net profit fell to INR 3.01 Cr from INR 4.31 Cr in H1 FY25, a 30% decline despite higher revenue.

EBITDA Margin

Operating profit before working capital changes for FY25 was INR 10.25 Cr, representing an EBITDA-equivalent margin of approximately 11.18% on total income of INR 91.69 Cr.

Capital Expenditure

The company invested in the commencement of Unit 5 (Polymer Division) in Nelamangala, which began commercial production on November 3, 2025. Specific INR Cr values for the project were not disclosed.

Credit Rating & Borrowing

Not disclosed in available documents. Total standalone borrowings as of September 30, 2025, were INR 9.31 Cr, including INR 3.22 Cr in long-term and INR 6.08 Cr in short-term debt.

⚙️ Operational Drivers

Raw Materials

Polymers, specialty films, fabrics, and adhesives. These materials are critical for the production of industrial specialty tapes.

Capacity Expansion

Unit 5 (Polymer Division) in Nelamangala, Bengaluru Rural, commenced commercial production on November 3, 2025. This unit is expected to provide vertical integration for polymer-based tape components.

Raw Material Costs

Cost of materials consumed for H1 FY26 was INR 41.90 Cr, representing 79.1% of revenue from operations. This high percentage makes the company highly sensitive to input price fluctuations.

📈 Strategic Growth

Expected Growth Rate

31%

Growth Strategy

Growth is driven by the operationalization of Unit 5 (Polymer Division) in late 2025, which allows for vertical integration and expansion into high-performance industrial specialty segments. The company is focusing on building strong teams and leveraging its new capacity to increase market penetration.

Products & Services

Industrial Specialty Adhesive Tapes, Foams, Films, Fabrics, and Die cuts.

Brand Portfolio

Srivasavi Tapes.

New Products/Services

New products from the Polymer Division (Unit 5) are expected to contribute to revenue starting in H2 FY26.

Market Expansion

Expansion into the Sompura Industrial Area, Nelamangala, with the new Unit 5 facility to serve the Bengaluru industrial hub.

🌍 External Factors

Industry Trends

The industry is shifting toward high-performance specialty tapes for industrial applications. Srivasavi is positioning itself by integrating polymer manufacturing to stay competitive in this evolving landscape.

Competitive Moat

The company's moat is built on its diverse product portfolio (foams, films, fabrics) and its move toward vertical integration with Unit 5, which reduces dependency on external polymer suppliers and enhances cost leadership.

Macro Economic Sensitivity

Highly sensitive to industrial production growth and manufacturing sector demand in India, particularly in automotive and electronics where specialty tapes are used.

Consumer Behavior

B2B industrial demand is shifting toward more specialized, high-durability adhesive solutions for complex manufacturing processes.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to Karnataka State Pollution Control Board norms and safety standards for chemical and polymer manufacturing. SEBI (LODR) Regulations 2015 govern its financial reporting and disclosures.

Environmental Compliance

The company spent INR 11.37 Lakhs on CSR activities in FY25, exceeding its obligation of INR 11.31 Lakhs. It must comply with pollution norms in the Sompura and Doddaballapura industrial areas.