💰 Financial Performance

Revenue Growth by Segment

The company operates in a single manufacturing segment. Total revenue from operations grew by 7.72% YoY, rising from INR 39.45 Cr in FY24 to INR 42.50 Cr in FY25. For the half-year ended September 30, 2025 (H1 FY26), the company recorded revenue of INR 26.07 Cr, representing approximately 61% of the previous full year's revenue in just six months.

Geographic Revenue Split

Not specifically disclosed in percentage terms; however, the company recently approved opening a new current account with UCO Bank specifically to facilitate the expansion of export-import transactions, indicating a strategic push toward international markets.

Profitability Margins

Net Profit Margin improved from 4.55% in FY24 to 4.77% in FY25. Profitability showed a significant surge in H1 FY26, with a Net Profit of INR 1.98 Cr on revenue of INR 26.07 Cr, resulting in a half-year net margin of 7.59%. This margin expansion is driven by better absorption of fixed costs on higher volumes.

EBITDA Margin

Profit Before Tax (PBT) margin was 6.44% in FY25 (INR 2.73 Cr) compared to 6.23% in FY24 (INR 2.46 Cr). In H1 FY26, the PBT margin further strengthened to 9.36% (INR 2.44 Cr), reflecting improved operational efficiency and cost control.

Capital Expenditure

Historical Property, Plant, and Equipment (PPE) stood at a gross value contributing to a total asset base of INR 30.62 Cr as of September 30, 2025. Specific planned CAPEX figures for FY26 were not disclosed, though the company maintains a regular program of physical verification for its existing assets.

Credit Rating & Borrowing

The company maintains a low debt profile with short-term borrowings of only INR 0.028 Cr (INR 2.86 Lakhs) as of September 30, 2025. Finance costs decreased significantly from INR 8.26 Lakhs in FY24 to INR 0.05 Lakhs in FY25, a 99% reduction, indicating a shift toward debt-free operations.

⚙️ Operational Drivers

Raw Materials

Synthetic polymers and chemical fibers (implied by 'Synthetic' business nature) represent the primary input, with total consumption of raw materials and stock-in-trade reaching INR 23.71 Cr in H1 FY26, accounting for 90.9% of revenue.

Import Sources

Not disclosed in available documents; however, the recent setup of specialized banking channels for 'export-import' suggests a transition toward global sourcing or sales.

Capacity Expansion

Current installed capacity is not specified in MT; however, the company employs 220 individuals to manage its manufacturing operations. Expansion is currently focused on market reach (export-import) rather than disclosed physical plant additions.

Raw Material Costs

Cost of materials consumed and purchases of stock-in-trade totaled INR 23.71 Cr in H1 FY26. In FY25, total expenditure was INR 39.76 Cr, up 7.48% YoY from INR 36.99 Cr in FY24, closely tracking revenue growth.

Manufacturing Efficiency

Employee benefit expenses as a percentage of revenue decreased from 13.05% in FY24 to 12.53% in FY25, suggesting improved labor productivity and better utilization of the 220-person workforce.

Logistics & Distribution

Not disclosed as a percentage of revenue; however, the company is expanding its logistics capabilities to handle increased export-import transactions.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth is targeted through the expansion of the export-import business, supported by new banking facilities at UCO Bank. The company is also leveraging its improved H1 FY26 profitability (7.59% net margin) to reinvest in operations. Reconstitution of the Audit and Nomination committees in October 2025 suggests a focus on strengthening governance to support larger-scale operations.

Products & Services

Synthetic manufactured products, likely including synthetic ropes, yarns, or industrial fabrics used in textiles and packaging.

Brand Portfolio

VERA

Market Expansion

Targeting international markets via new export-import transaction channels initiated in late 2025.

Market Share & Ranking

Not disclosed; the company is a listed SME entity on the NSE SME exchange.

🌍 External Factors

Industry Trends

The synthetic textile and industrial materials industry is seeing a shift toward specialized high-tenacity products. VERA is positioning itself by maintaining a lean debt profile and expanding its banking infrastructure for global trade.

Competitive Landscape

Competes with other SME and mid-cap synthetic manufacturers in the Gujarat region; market dynamics are driven by raw material pricing and credit terms offered to distributors.

Competitive Moat

The company's moat is built on its established manufacturing presence in Bhavnagar, Gujarat (a textile hub) and its 220-person skilled workforce. Sustainability is supported by a debt-free balance sheet and consistent profitability growth (EPS grew from 3.64 to 4.11).

Macro Economic Sensitivity

High sensitivity to industrial manufacturing demand in India and global trade policies due to the new export focus.

Consumer Behavior

Industrial buyers are increasingly seeking reliable SME suppliers with transparent governance, which VERA addresses through its regular SEBI compliance and clean audit reports.

Geopolitical Risks

Trade barriers or shipping disruptions could impact the newly targeted export-import revenue streams.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with the Companies Act 2013 and SEBI (LODR) Regulations 2015. As an SME-listed entity, it is currently exempt from mandatory Ind-AS adoption and certain related party disclosure requirements under Regulation 23(9) due to its net worth being below INR 25 Cr as of March 2025.

Environmental Compliance

The company maintains Property, Plant, and Equipment records and follows standard manufacturing compliance; specific ESG spend was not disclosed.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 25.9% (INR 0.71 Cr tax on INR 2.73 Cr PBT).

Legal Contingencies

The Secretarial Audit report for the period ended March 31, 2025, did not highlight any major pending litigations or non-compliances. No specific case values in INR were reported.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the recoverability of trade receivables, which reached INR 9.58 Cr in Sept 2025, representing 36.7% of H1 revenue. Any delay in these payments could impact the 90%+ material cost coverage.

Geographic Concentration Risk

Heavy concentration in Gujarat, India, for manufacturing, with a nascent shift toward international markets.

Third Party Dependencies

Dependency on synthetic fiber suppliers; any disruption in the supply of polymers would halt the single-segment manufacturing process.

Technology Obsolescence Risk

The company uses computerized records for PPE and financial management; however, specific manufacturing technology upgrades were not detailed.

Credit & Counterparty Risk

Receivables quality is a concern given the 119% YoY increase in trade debts; the company has not disclosed a specific provision for doubtful debts in the H1 FY26 summary.