URAVIDEF - Uravi Defence &

📊 NSE: URAVIDEF 🏢 Auto Ancillaries 📅 Last Updated: 12/14/2025 14:47

💰 Financial Performance

Revenue Growth by Segment

The OEM segment, which is the primary revenue driver at 96.09% of total sales, saw a marginal decline of 1.09% in FY25. The Aftermarket (AFM) segment contributed 2.78% of sales with a growth of 0.45%, while Exports represented 1.13% of revenue, growing by 0.65%. Total revenue for FY25 was INR 41.34 Cr, a 1.55% decrease from INR 41.98 Cr in FY24.

Geographic Revenue Split

The company is heavily focused on the domestic Indian market, with 98.87% of revenue derived from local operations (OEM and AFM segments). International exports contribute the remaining 1.13% of the revenue mix as of FY25.

Profitability Margins

Profitability saw a significant compression in FY25; the Operating Profit Margin dropped from 16.92% to 9.42%, and the Net Profit Margin decreased from 5.08% to 4.32%. This was primarily due to a 9.33% decline in EBITDA, which fell to INR 6.50 Cr from INR 7.10 Cr YoY.

EBITDA Margin

The EBITDA margin for FY25 stood at 15.72% (INR 6.50 Cr), representing a 9.33% year-on-year decline from the previous year's INR 7.10 Cr. This contraction reflects rising operational costs and price erosion in the automotive lighting segment.

Capital Expenditure

As of September 30, 2025, the company reported Capital Work-in-Progress of INR 2.77 Cr. The company is investing in its three manufacturing facilities located in Bhiwandi (Maharashtra) and Kathua (Jammu & Kashmir) to support its pivot into defense and EV technology.

Credit Rating & Borrowing

The company significantly improved its leverage position, with the Debt-Equity Ratio decreasing from 0.95 in FY24 to 0.55 in FY25. Total consolidated borrowings as of September 2025 were approximately INR 30.71 Cr, consisting of INR 6.42 Cr in long-term and INR 24.28 Cr in short-term debt.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include glass, filaments, LEDs, and plastic housings for automotive lamps. Cost of materials consumed in FY25 was INR 22.48 Cr, representing approximately 54.4% of total revenue.

Capacity Expansion

The company operates three manufacturing plants: Plant 1 in Bhiwandi (Maharashtra), and Plants 2 and 3 in Kathua (Jammu & Kashmir). While specific unit capacity is not disclosed, the company is expanding into high-margin defense and EV solutions.

Raw Material Costs

Raw material costs totaled INR 22.48 Cr in FY25. The company faces risks from price erosion in the B2B segment, which impacts the ability to pass on raw material fluctuations to OEMs.

Manufacturing Efficiency

Operational efficiency was cited as a key driver for maintaining performance despite a revenue dip. However, specific capacity utilization percentages were not disclosed.

Logistics & Distribution

The company maintains an extensive nationwide distribution network to serve both OEMs and the aftermarket, though specific logistics costs as a percentage of revenue are not provided.

📈 Strategic Growth

Growth Strategy

The company is transitioning from a pure-play lamp manufacturer to a defense and technology firm, evidenced by its name change in November 2024. Strategy includes raising INR 45 Cr through 15,00,000 warrants at INR 300 each to fund expansion into high-margin defense and EV sectors and leveraging the material subsidiary SKL India Private Limited.

Products & Services

Stoplights, taillights, indicators, wedge lamps, halogens, and LED Lamps for the automotive, defense, and EV sectors.

Brand Portfolio

UVAL

New Products/Services

The company is focusing on LED Lamps and specialized lighting for the Defense and EV segments. Wedge Base Holders saw a massive dispatch increase of 88.42% in FY25, indicating a shift in product demand.

Market Expansion

Expansion is targeted toward the defense sector and global markets through strategic collaborations with international LED manufacturers.

Strategic Alliances

Global strategic collaborations with prominent LED lamp manufacturers have been established to enhance global competitiveness.

🌍 External Factors

Industry Trends

The industry is shifting toward LED and EV-compatible lighting. While long-term demand is strong, short-term challenges include price erosion and the prevalence of low-quality products affecting the B2B segment.

Competitive Landscape

The company competes in a market characterized by high price sensitivity and technological shifts from halogen to LED.

Competitive Moat

Uravi's moat is built on 15+ years of industry experience, IATF 16949:2016 certification, and deep-rooted relationships with major Indian two-wheeler OEMs. This is sustainable due to the high entry barriers in OEM supply chains.

Macro Economic Sensitivity

The company is sensitive to the performance of the Indian automotive industry, particularly the two-wheeler segment, which drives its 96.09% OEM revenue share.

Consumer Behavior

There is an increasing trend toward high-efficiency LED lighting and EV-specific components in the automotive aftermarket.

Geopolitical Risks

The company's shift into the defense sector makes it sensitive to national defense procurement policies and 'Make in India' initiatives.

⚖️ Regulatory & Governance

Industry Regulations

The company operates as an IATF 16949:2016 certified organization, adhering to stringent automotive quality management standards. It also complies with Import-Export regulations and various labor laws.

Taxation Policy Impact

The company reported a total tax expense of INR 77.56 Lakhs for FY25, with an effective tax rate impacting the PAT which stood at INR 1.78 Cr.

Legal Contingencies

There were no investor complaints pending as of September 30, 2025. No specific values for pending litigation in High Courts or the Supreme Court were disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary risk is the high revenue concentration in the OEM segment (96.09%), making the company highly vulnerable to a slowdown in the Indian two-wheeler market.

Geographic Concentration Risk

98.87% of revenue is concentrated in India, posing a risk if domestic automotive demand fluctuates.

Technology Obsolescence Risk

The transition from traditional wedge lamps to LED and EV solutions poses a risk of technological obsolescence for older product lines, as seen in the 67.48% decline in Silicon Cap dispatches.