TOUCHWOOD - Touchwood Enter.

📊 NSE: TOUCHWOOD 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 14:29

💰 Financial Performance

Revenue Growth by Segment

Not disclosed in available documents; however, Total Comprehensive Income After Tax grew 186.6% YoY from INR 0.56 Cr in H1 FY25 to INR 1.62 Cr in H1 FY26.

Profitability Margins

Net Profit Margin improved significantly as Total Comprehensive Income rose 186.6% YoY to INR 1.62 Cr. Specific Gross and Operating margins are not provided.

Capital Expenditure

In H1 FY26, the company incurred INR 4.42 Cr in capital expenditure for the purchase of Property, Plant & Equipment, representing a 32.8% increase over the INR 3.33 Cr spent in H1 FY25.

Credit Rating & Borrowing

Non-current borrowings increased by INR 2.02 Cr in H1 FY26. Interest paid during the period was INR 0.107 Cr, up 64.6% from INR 0.065 Cr in H1 FY25.

⚙️ Operational Drivers

Raw Materials

Not applicable as the company is in the service sector (events and weddings); however, major costs include rent (INR 0.03 Cr for H1 FY26) and professional services (INR 0.30 Cr paid to related parties).

Capacity Expansion

The company is expanding into the hospitality sector through the acquisition of a 51% stake in Vanam Wellness & Celebration Private Limited, which operates in the hotels, resorts, and lodging segment.

Manufacturing Efficiency

Not applicable for this service-based business.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company is pursuing a vertical integration strategy by acquiring a 51% stake in Vanam Wellness to enter the 'Accommodation & Food Services' sector. It raised INR 14.28 Cr through a preferential issue of warrants to fund subsidiary expansion (INR 2.50 Cr utilized), capital expenditures for assets (INR 10.00 Cr allocated, INR 3.32 Cr utilized), and working capital/loan repayment (INR 1.78 Cr utilized).

Products & Services

Wedding planning and management, event management, corporate events, and short-term lodging/resort facilities (via Vanam Wellness).

Brand Portfolio

Weddings by TOUCHWOOD, Vanam Wellness & Celebration Private Limited.

New Products/Services

Short-term lodging, houseboats, and resort facilities through the newly acquired subsidiary Vanam Wellness.

Market Expansion

Expansion into the hospitality and wellness segment to complement its core wedding business, targeting the $50 billion Indian wedding market.

Strategic Alliances

Acquisition of a 51% controlling stake in Vanam Wellness & Celebration Private Limited.

🌍 External Factors

Industry Trends

The Indian wedding industry is evolving with a shift from quantity (large guest lists) to quality (intimate, high-end experiences). Technology and changing consumer preferences are driving the demand for 'visual and experiential treats.'

Competitive Landscape

Operates in a vibrant and dynamic sector with significant competition from local and national event management firms.

Competitive Moat

Touchwood's moat is built on over two decades of brand equity in the luxury wedding space and its transition into an integrated service provider (events + venues).

Macro Economic Sensitivity

The wedding industry is highly sensitive to cultural trends and social significance in India, which currently values weddings as a $50 billion sector.

Consumer Behavior

Consumers are increasingly preferring intimate affairs with high-quality execution over large-scale traditional gatherings.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically regarding related party transactions and fund utilization disclosures.

Taxation Policy Impact

The effective tax rate for H1 FY26 was approximately 25.8% (INR 0.56 Cr tax on profit before tax).

⚠️ Risk Analysis

Key Uncertainties

Operating cash flow deficit increased by 351% YoY to INR 3.88 Cr, indicating potential liquidity pressure if growth does not translate to cash quickly.