SUPERHOUSE - Superhouse Ltd

📊 NSE: SUPERHOUSE 🏢 Leather / Leather Products 📅 Last Updated: 12/14/2025 13:52

💰 Financial Performance

Revenue Growth by Segment

Overall operating income grew by 18.09% in FY2023 to INR 768.13 Cr from INR 650.47 Cr in FY2022. The group achieved a 43% cumulative revenue increase from FY2021 to FY2023. H1 FY2024 operating income was reported at INR 355 Cr.

Geographic Revenue Split

The majority of revenue is generated from export sales to more than 78 countries. Marketing offices are established in the USA, UK, UAE, Spain, and Germany to support global distribution.

Profitability Margins

PAT margin declined from 4.83% in FY2022 to 3.64% in FY2023 (INR 27.92 Cr). For FY2024, the PAT margin further decreased to 1.76%. 9MFY25 PAT margin showed a slight recovery to 1.78% compared to 1.73% in 9MFY24.

EBITDA Margin

EBITDA margin witnessed an incessant decline over three years, dropping from 9.07% in FY2021 to 7.68% in FY2023. This decline was primarily driven by lower government export incentives and higher selling expenses.

Credit Rating & Borrowing

Acuité reaffirmed a long-term rating of 'ACUITE A-' (Stable) and a short-term rating of 'ACUITE A2+' on INR 219 Cr of bank facilities as of February 2024.

⚙️ Operational Drivers

Raw Materials

Key raw materials include finished leather and shoe uppers. The group sources leather from its own tanneries and imports from Brazil, Italy, and Columbia to mitigate price fluctuation risks.

Import Sources

Brazil, Italy, and Columbia.

Capacity Expansion

The group currently operates 12 manufacturing facilities, including two tanneries, across Uttar Pradesh. Specific expansion plans in MT or units are not disclosed.

Raw Material Costs

Raw material costs are partially mitigated through backward integration into tanneries. However, the group remains exposed to global leather price fluctuations and lower export incentives which impacted FY23 margins.

Manufacturing Efficiency

Working capital limits were utilized at an average of 95.50% for fund-based limits and 53.78% for non-fund based limits for the five months ended February 2025, indicating high capacity utilization of available credit.

Logistics & Distribution

Distribution is managed through offshore subsidiaries and marketing offices in the UK, USA, UAE, Spain, and Germany to reach 78+ countries.

📈 Strategic Growth

Expected Growth Rate

12.60%

Growth Strategy

Growth is driven by an established market position in the export leather industry, leveraging a diversified product portfolio and a strong distribution network across 78 countries. The group utilizes offshore subsidiaries like Superhouse (U.K.) Limited and Superhouse (USA) International Inc. to maintain global market presence.

Products & Services

Finished leather, shoe uppers, finished footwear (safety and fashion), textile garments, horse riding equipment, and other leather accessories.

Brand Portfolio

Superhouse, Briggs Industrial Footwear.

Market Expansion

The group continues to target global markets through its 12 manufacturing units and international marketing offices, though specific new regions were not named.

Market Share & Ranking

Recognized as one of the leading manufacturers and exporters of finished leather in India.

🌍 External Factors

Industry Trends

The leather industry is highly competitive and fragmented. Future growth depends on scaling operations and managing intensive working capital cycles (currently 256 GCA days).

Competitive Landscape

Faces intense competition from both organized and unorganized players, leading to persistent pricing pressure.

Competitive Moat

Moat is built on 40+ years of promoter experience, integrated manufacturing (in-house tanneries), and a global distribution network. Sustainability is supported by a healthy net worth of INR 461.45 Cr.

Macro Economic Sensitivity

Highly sensitive to European economic conditions and global consumer demand for leather goods. FY2024 performance was specifically noted to be impacted by lower European demand.

Consumer Behavior

Demand is shifting toward safety and fashion footwear, which the group addresses through its diversified product portfolio.

Geopolitical Risks

Exposure to trade barriers and economic shifts in the 78 countries of export, particularly the UK and EU where major marketing offices are located.

⚖️ Regulatory & Governance

Industry Regulations

Operates as a Government of India recognized Export Trading House. Compliance includes SEBI LODR regulations for listed entities.

Legal Contingencies

A penalty of INR 2,000 plus GST (Total INR 2,360) was imposed by the BSE for a one-day delay in submitting the Annual Report for FY 2024-25.

⚠️ Risk Analysis

Key Uncertainties

Key risks include the incessant decline in profitability margins (EBITDA down to 7.68%), intensive working capital requirements, and potential further demand contraction in European markets.