VIKASLIFE - Vikas Lifecare

📊 NSE: VIKASLIFE 🏢 Trading 📅 Last Updated: 12/14/2025 15:07

💰 Financial Performance

Revenue Growth by Segment

The Agro Products Division is targeting 80% growth, aiming for INR 360 Cr in the current fiscal year compared to INR 200 Cr in the previous fiscal. The division achieved INR 48 Cr in sales before bagging a fresh order of INR 15.5 Cr in Q2 2023-24.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates factories in Rajasthan (Shahjahanpur) and Karnataka (Mangaluru) and is headquartered in Delhi.

Profitability Margins

For 9MFY22, the company reported a net profit of INR 5.7 Cr on revenues of INR 211 Cr, representing a net profit margin of approximately 2.7%. Profitability is expected to improve as the company shifts from B2B trading to higher-margin B2C segments like FMCG and textiles.

EBITDA Margin

Not explicitly disclosed in percentage terms, but the company reported a net profit of INR 5.7 Cr for 9MFY22. Profitability metrics are a key rating sensitivity for upward revision.

Capital Expenditure

The company's subsidiary, Genesis Gas Solutions, entered a JV with Indraprastha Gas Limited (IGL) to set up a smart meter manufacturing plant with a planned capital expenditure of INR 110 Cr.

Credit Rating & Borrowing

Infomerics reaffirmed a long-term rating of IVR BB+/Stable and a short-term rating of IVR A4+. The company has an overall gearing ratio of 0.62x as of March 31, 2021, down from 0.75x in 2020.

⚙️ Operational Drivers

Raw Materials

Key raw materials include polymers and rubber compounds such as EVA, PVC, PP, and PE, which are used for manufacturing specialty additives and up-cycled compounds.

Import Sources

Not disclosed in available documents; however, the company is exposed to foreign exchange fluctuations, suggesting international sourcing for certain polymer products.

Key Suppliers

The company is a Del-Credere agent for ONGC (Oil and Natural Gas Corporation Ltd) - Petro Additions Limited, which ensures a steady supply of petrochemical products.

Capacity Expansion

The cashew processing facility in Mangaluru has an installed capacity of 1,000 tonnes/day. The company has acquired 36.41 acres of land since June 2021 and targets 100-150 acres of cultivable land by March 2024.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company is exposed to price volatility in the petrochemical and agro-commodity markets.

Manufacturing Efficiency

Average working capital utilization for the 12 months ending January 2022 stood at approximately 50%, reflecting adequate cushion for incremental requirements.

📈 Strategic Growth

Expected Growth Rate

80%

Growth Strategy

Growth will be driven by diversifying into B2C segments including FMCG and Textiles (via the INR 12.5 Cr acquisition of MSR Apparels), expanding the Agro Products division through backward integration and land acquisition (targeting 150 acres), and a high-tech JV with IGL for smart meter manufacturing (INR 110 Cr Capex).

Products & Services

Polymer and rubber compounds, specialty additives for plastics, up-cycled compounds, cashews, agro products (rice, pulses), smart gas meters, and textile garments.

Brand Portfolio

Genesis Gas Solutions, MSR Apparels.

New Products/Services

Smart Gas Meters (via Genesis JV) and Textile garments (via MSR Apparels acquisition).

Market Expansion

The company is eyeing export orders for its Agro Products business and is establishing rice processing facilities to elevate its presence in international markets by 2024-25.

Strategic Alliances

Joint Venture with Indraprastha Gas Limited (IGL) for smart meter manufacturing and empanelment with NAFED for agro-product expansion.

🌍 External Factors

Industry Trends

The industry is shifting toward smart infrastructure (Smart Gas Meters) and government-mandated digital adoption. The agro-industry is growing at a steady pace, while the polymer industry is seeing a shift toward up-cycled and environmentally friendly compounds.

Competitive Landscape

The company operates in a highly competitive industry with significant players in the petrochemical trading and agro-commodity sectors.

Competitive Moat

The company's moat is built on its Del-Credere agency status with ONGC and its empanelment with NAFED, providing a competitive edge in sourcing and distribution that is difficult for smaller competitors to replicate.

Macro Economic Sensitivity

Highly sensitive to agro-climatic conditions and GDP growth, which affects demand for infrastructure and consumer products.

Consumer Behavior

Increasing consumer demand for FMCG and essential products has prompted the company's foray into the B2C segment.

Geopolitical Risks

Exposure to foreign exchange fluctuations suggests vulnerability to international trade tensions and currency volatility.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by ISO 9001:2015 standards and pollution norms related to polymer manufacturing and plastic waste management.

Environmental Compliance

The company fulfills mandated EPR (Extended Producer Responsibility) obligations by manufacturing up-cycled compounds from plastic waste.

Legal Contingencies

As of November 14, 2025, the company reported a delay in quarterly results due to the need for verification of certain transactions and valuations within subsidiaries; specific case values were not disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty involves the verification of transactions and valuations within subsidiaries, which delayed the Q2 FY26 financial results. Agro-climatic risks also pose a threat to the 80% growth target in the agro segment.