💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 38.76% YoY, increasing from INR 35.03 Cr in FY2024 to INR 48.61 Cr in FY2025. The growth is driven by the company's expansion into the real estate segment alongside its legacy networking business.

Geographic Revenue Split

Not specifically disclosed in percentages, but the company is headquartered in Bengaluru, Karnataka, and listed on the BSE and NSE, suggesting a primary focus on the Indian domestic market.

Profitability Margins

Net Profit Margin for continuing operations improved to 12.17% in FY2025 (INR 5.92 Cr) from 10.10% in FY2024 (INR 3.54 Cr). Profit before tax margin nearly doubled from 9.98% to 15.43% due to higher operational scale.

EBITDA Margin

EBITDA margin stood at approximately 44.65% in FY2025 (INR 21.71 Cr) compared to 42.40% in FY2024 (INR 14.85 Cr). The high margin is characteristic of the real estate development phase where revenue recognition is accelerating.

Capital Expenditure

The company invested INR 0.81 Cr in Property, Plant, and Equipment in FY2025, a significant reduction from the INR 6.76 Cr spent in FY2024. This suggests a shift from asset-heavy manufacturing setup to project-based real estate development.

Credit Rating & Borrowing

Historical ICRA ratings were withdrawn. Borrowing costs are high, with finance costs of INR 11.10 Cr in FY2025, representing 22.8% of total revenue, indicating a high-leverage model typical for real estate expansion.

⚙️ Operational Drivers

Raw Materials

Key inputs include Land and related development costs (INR 9.66 Cr in FY2025), and networking components such as modems, converters, switches, and multiplexers for the hardware division.

Import Sources

Not disclosed in available documents, though networking hardware components are typically sourced from global electronics hubs like China or Taiwan.

Capacity Expansion

The company pivoted to real estate in 2016. Current inventory of INR 16.96 Cr (up 186.7% YoY) indicates a significant expansion in project pipeline and land bank development.

Raw Material Costs

Cost of materials consumed was INR 11.60 Cr (23.8% of revenue) in FY2025, while land and related costs added another INR 9.66 Cr (19.8% of revenue). Total direct project/product costs represent roughly 43.6% of revenue.

Manufacturing Efficiency

The company is transitioning; networking hardware is now a smaller portion of the value proposition compared to the INR 108.91 Cr held in Investment Property.

Logistics & Distribution

Not disclosed as a specific percentage, but the company maintains a registered office and operations in Bengaluru to serve the regional real estate market.

📈 Strategic Growth

Expected Growth Rate

38.76%

Growth Strategy

The company is achieving growth through a strategic pivot to real estate, evidenced by the name change to Umiya Buildcon Limited in Feb 2025. It is leveraging its land bank (INR 108.91 Cr in investment property) and increasing inventory (up 186.7%) to launch new residential or commercial projects.

Products & Services

Access and Networking equipment (modems, converters, switches, multiplexers) and Real Estate development projects (residential/commercial).

Brand Portfolio

Umiya, MRO-TEK.

New Products/Services

Expansion into larger real estate developments under the 'Umiya Buildcon' brand, expected to be the primary revenue driver over the legacy hardware business.

Market Expansion

Shifted focus from pure technology hardware to the Bengaluru real estate market, targeting high-growth urban development zones.

Strategic Alliances

Operates through subsidiaries including MRO-TEK Private Limited (100% owned) and Umiya Buildtek (66.66% partnership firm).

🌍 External Factors

Industry Trends

The industry is shifting from hardware-centric networking to software-defined solutions, prompting the company's strategic pivot into the more tangible and high-value real estate development sector in India.

Competitive Landscape

Competes with regional real estate developers in Bengaluru and global networking hardware providers like Cisco or D-Link in its legacy segment.

Competitive Moat

The company's moat lies in its significant land bank and investment properties valued at INR 108.91 Cr, providing a low-cost entry into the competitive Bengaluru realty market compared to new entrants.

Macro Economic Sensitivity

Highly sensitive to Indian interest rate cycles and urban housing demand in Bengaluru. Real estate sector growth is typically 1.5x to 2x of GDP growth.

Consumer Behavior

Shift toward premium residential spaces and integrated commercial hubs in tech-cities like Bengaluru.

Geopolitical Risks

Trade barriers on electronic components could impact the legacy MRO-TEK hardware division's margins.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RERA (Real Estate Regulatory Authority) compliance for all property developments and BIS standards for networking equipment.

Taxation Policy Impact

Effective tax rate for FY2025 was 21.07% (INR 1.58 Cr tax on INR 7.50 Cr PBT).

Legal Contingencies

The auditor noted exceptions regarding the maintenance of an 'audit trail' as required under Section 143(3)(j) of the Companies Act, which could lead to regulatory scrutiny.

⚠️ Risk Analysis

Key Uncertainties

High leverage risk with finance costs exceeding net profit; negative operating cash flow of INR 16.89 Cr in FY2025 poses liquidity risks if project sales are delayed.

Geographic Concentration Risk

High concentration in the Bengaluru market, making the company vulnerable to local regulatory changes or regional economic downturns.

Third Party Dependencies

Reliance on other auditors for the financial statements of the 100% subsidiary MRO-TEK Private Ltd and the 66.66% partnership Umiya Buildtek.

Technology Obsolescence Risk

The legacy networking hardware business faces high risk of obsolescence from cloud-based networking and 5G technologies.

Credit & Counterparty Risk

Trade receivables (billed and unbilled) total INR 4.90 Cr, representing approximately 10% of annual revenue, indicating moderate counterparty risk.