VIKASWSP - Vikas Wsp

📊 NSE: VIKASWSP 🏢 Chemicals 📅 Last Updated: 12/14/2025 15:07

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for all segments (US, Europe, India) was INR 0.00 for the six months ended September 30, 2025, representing a 100% decline in core business activity compared to historical operational periods.

Geographic Revenue Split

Historically, the company served the United States, Europe, and India; however, current geographic revenue contribution is 0% across all regions as the company is under Corporate Insolvency Resolution Process (CIRP).

Profitability Margins

Profitability margins are currently non-existent due to zero revenue; the company reported a Net Loss of INR 1,753.44 Lacs for the half-year ended September 30, 2025, and a Net Loss of INR 3,549.38 Lacs for the full year ended March 31, 2025.

EBITDA Margin

EBITDA margin is not calculable due to zero revenue; however, the company incurred employee benefit expenses of INR 5.94 Lacs and finance costs of INR 42.88 Lacs in H1 FY26, contributing to a total comprehensive loss of INR 1,753.44 Lacs.

Capital Expenditure

There is no planned capital expenditure disclosed; historical assets are being depreciated, with depreciation and amortization expense recorded at INR 416.00 Lacs for H1 FY26 compared to INR 1,708.00 Lacs in FY25.

Credit Rating & Borrowing

The credit rating was withdrawn by Brickwork Ratings (BWR D) in September 2019 due to non-cooperation; current financial liabilities include borrowings of INR 30,666.87 Lacs (approx. INR 306.67 Cr) as of September 30, 2025.

⚙️ Operational Drivers

Raw Materials

Guar seeds and related chemicals for Guar Gum Powder production (implied by company history as Vikas Gum Mills), currently representing 0% of costs due to suspended operations.

Import Sources

Not disclosed in available documents, though historical operations typically sourced from Rajasthan and Haryana, India.

Key Suppliers

Not disclosed in available documents; however, related party transactions are noted with Vikas Proppant & Granite Ltd and Vikas Chemi Gums (India) Limited for sale/purchase activities.

Capacity Expansion

Current installed capacity is not specified in MT, but the company holds Property, Plant, and Equipment valued as part of total assets of INR 1,43,058.57 Lacs; no expansion is planned during the insolvency period.

Raw Material Costs

Raw material costs were INR 0.00 in H1 FY26, a 100% reduction from active periods, as manufacturing has ceased under the current Resolution Professional's supervision.

Manufacturing Efficiency

Capacity utilization is 0% as the company reported zero revenue from operations for the periods ending March 2025 and September 2025.

Logistics & Distribution

Distribution costs are 0% of revenue as there were no sales recorded in the current or previous fiscal year.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

The company's survival depends entirely on the successful completion of the Corporate Insolvency Resolution Process (CIRP) and the approval of a resolution plan by the Committee of Creditors to restart operations and settle debts of INR 306.67 Cr.

Products & Services

Guar Gum Powder and related derivatives used in food, textile, and paper industries (based on company name and historical profile).

Brand Portfolio

Vikas WSP (historical brand identity in the guar gum market).

New Products/Services

No new product launches are planned; the focus is strictly on legal and financial restructuring under IBC.

Market Expansion

Market expansion is currently halted; the company is focused on maintaining its listing on the Bombay Stock Exchange (BSE) and complying with basic statutory filings.

Market Share & Ranking

Not disclosed in available documents; the company has lost significant market share due to the cessation of operations since 2022.

Strategic Alliances

No active JVs; related party transactions are limited to historical entities like Vikas Dall & General Mill on an arm's length basis.

🌍 External Factors

Industry Trends

The guar gum industry is subject to volatile demand from the oil and gas sector (fracking) and food industry; the company is currently positioned as a distressed asset with no active participation in these trends.

Competitive Landscape

The company is currently uncompetitive compared to active guar gum processors due to its suspended operations and default status on INR 220 Cr of bank facilities.

Competitive Moat

The company's historical moat in guar gum processing has been eroded by insolvency; sustainability is currently non-existent without a successful resolution plan.

Macro Economic Sensitivity

Highly sensitive to the Insolvency and Bankruptcy Code (IBC) legal proceedings; a 100% sensitivity to the outcome of the resolution plan.

Consumer Behavior

Shifts toward synthetic thickeners in food or reduced fracking activity would adversely affect future demand for the company's guar products.

Geopolitical Risks

Trade barriers in the US and Europe would impact future recovery, as these were primary historical markets for guar gum exports.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Insolvency and Bankruptcy Code, 2016; the company is currently managed by a Resolution Professional rather than a Board of Directors.

Environmental Compliance

Not disclosed in available documents; however, manufacturing of guar gum must comply with standard industrial pollution norms.

Taxation Policy Impact

The company has provisions for current tax liabilities amounting to INR 2,800.88 Lacs as of September 30, 2025.

Legal Contingencies

The company is under CIRP (Corporate Insolvency Resolution Process) since February 2022; bank balances of INR 1.85 Lacs are unconfirmed and subject to reconciliation.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the successful resolution of the CIRP; failure to find a buyer or resolution applicant could lead to liquidation, impacting 100% of shareholder value.