💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: advertising and consultancy. Revenue from operations for H1 FY26 was INR 720.10 lakhs, a 14.23% increase from INR 630.38 lakhs in H1 FY25. For the full year FY25, revenue reached INR 1,515.61 lakhs, a 46.43% growth from INR 1,035.05 lakhs in FY24, driven by expanded advertising reach and infrastructure.

Geographic Revenue Split

While specific percentages are not disclosed, the company operates across West Bengal, Assam, Maharashtra, and Delhi. Major revenue hubs include Kolkata, Mumbai, and Pune, where the company is expanding its signal point display network.

Profitability Margins

Net Profit Margin declined from 16% in FY24 to 10% in FY25. H1 FY26 PAT was INR 82.44 lakhs on a total revenue of INR 741.98 lakhs (~11.1% margin). The decline in FY25 was due to total expenditure rising 65.7% YoY to INR 1,322.98 lakhs, outpacing revenue growth during the scaling phase.

EBITDA Margin

EBITDA for FY25 was INR 367.01 lakhs with a margin of 24.21%, compared to INR 304.94 lakhs and a margin of 29.46% in FY24. The 525 bps margin compression resulted from increased service procurement costs and employee benefits, which rose to INR 227.31 lakhs in FY25.

Capital Expenditure

The company planned a total CapEx of INR 848.16 lakhs via IPO proceeds. As of September 30, 2025, INR 526.00 lakhs was allocated for police booths (INR 387.87 lakhs utilized) and INR 60.00 lakhs for signal points (INR 26.11 lakhs utilized).

Credit Rating & Borrowing

Total borrowings as of September 30, 2025, stood at INR 766.42 lakhs (Long-term: INR 81.08 lakhs; Short-term: INR 685.34 lakhs). Finance costs for H1 FY26 were INR 36.87 lakhs, representing approximately 5% of total revenue.

⚙️ Operational Drivers

Raw Materials

The primary cost driver is 'Purchase of Services' (advertising space/rights), which accounted for INR 675.99 lakhs (44.6% of revenue) in FY25. Cost of materials consumed was INR 40.87 lakhs (2.7% of revenue).

Capacity Expansion

The company is expanding its advertising inventory by setting up new Police Booths in West Bengal, Assam, Maharashtra, and Delhi, and signal point displays in Kolkata, Mumbai, and Pune. Total IPO-funded project cost is INR 586 lakhs for these assets, with INR 413.98 lakhs already deployed as of September 2025.

Raw Material Costs

Service procurement costs rose to INR 675.99 lakhs in FY25, representing 44.6% of revenue. This increase is tied to the acquisition of more advertising rights to support the 46.43% revenue growth.

Manufacturing Efficiency

Inventory turnover of 30.14 times in FY25, though lower than FY24's 78.09 times, indicates a relatively lean operation for an advertising firm, though asset utilization speed has slowed.

Logistics & Distribution

Other expenses, including site maintenance and distribution, were INR 209.30 lakhs in FY25, representing 13.8% of revenue.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth will be achieved by deploying the remaining INR 263.05 lakhs of IPO funds into new advertising infrastructure in high-traffic zones across Delhi, Maharashtra, and Assam, thereby increasing the volume of ad-space inventory available for sale.

Products & Services

Outdoor advertising space on police booths and signal points, advertising consultancy, public relations, press relations, and mass communication services.

Brand Portfolio

Veritaas Advertising.

New Products/Services

New advertising sites in Delhi and Assam are the primary growth drivers, expected to contribute significantly to revenue following the 46.43% growth seen in FY25.

Market Expansion

Targeting expansion in Delhi and Assam for police booths and Mumbai/Pune for signal point displays within the FY26 timeline using IPO proceeds.

🌍 External Factors

Industry Trends

The OOH advertising industry is growing but shifting towards digital. Veritaas is positioning itself by securing physical infrastructure (police booths) which provides high-visibility, non-skippable advertising in prime urban locations.

Competitive Landscape

Operates in a fragmented advertising market but holds a niche in police booth media, competing with other OOH media agencies for corporate ad budgets.

Competitive Moat

Sustainable competitive advantage through long-term rights for police booth advertising, which are difficult for competitors to replicate due to the required government liaising and infrastructure investment. This supported a 22% ROCE in FY25.

Macro Economic Sensitivity

Highly sensitive to corporate marketing spends; a 1% drop in GDP could lead to a 2-3% drop in advertising revenue as companies cut discretionary spending.

Consumer Behavior

Increased urban mobility benefits OOH advertising on signal points and police booths as more consumers spend time commuting in major cities.

Geopolitical Risks

Minimal direct impact as a domestic service provider, but indirect risks exist if global economic slowdowns cause MNC clients to reduce their Indian advertising budgets.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by municipal advertising norms and the Companies Act 2013. Compliance with local body regulations for outdoor displays is critical for maintaining advertising rights.

Taxation Policy Impact

Effective tax rate for FY25 was approximately 30.5% (Total tax of INR 65.11 lakhs on PBT of INR 212.92 lakhs).

⚠️ Risk Analysis

Key Uncertainties

Regulatory risk regarding outdoor advertising permits and the high cost of service procurement (44.6% of revenue) are key business risks that could impact margins by 5-10%.

Geographic Concentration Risk

Revenue is heavily concentrated in West Bengal and Maharashtra. Expansion into Delhi and Assam is underway to diversify this regional risk.

Third Party Dependencies

Significant dependency on third-party service providers for media space, which cost INR 675.99 lakhs in FY25.

Technology Obsolescence Risk

Risk of traditional OOH becoming less attractive than digital OOH; the company may need to transition to digital signal displays to maintain premium pricing and client interest.

Credit & Counterparty Risk

Trade receivables of INR 525.25 lakhs as of September 2025 represent a significant portion of half-year revenue, indicating potential liquidity pressure if collections slow.