💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) grew marginally by ~1% from INR 1,526 Cr in FY24 to INR 1,545 Cr in FY25. The Vnext segment is growing at a rate of 25% upwards year-on-year, while the company is intentionally shifting focus away from the legacy roofing business to achieve a 50:50 revenue split by FY25.

Geographic Revenue Split

Not disclosed in available documents, though the company operates 13 pan-India manufacturing locations providing geographic dispersal.

Profitability Margins

EBITDA margin increased by 64 basis points from 6.51% in FY24 to 7.15% in FY25. Net profit margin decreased by 16 basis points from 0.17% in FY24 to 0.01% in FY25 due to higher interest and depreciation expenses.

EBITDA Margin

EBITDA margin was 7.15% in FY25, up from 6.51% in FY24 (+64 bps). Q1FY26 PBILDT margins further improved to 10.07% from 8.51% in Q1FY25 (+156 bps) due to better cost management and softening raw material prices.

Capital Expenditure

The company added 2 new plants in the last couple of years and is adding another plant for the Vnext division in the current year to support rapid product acceptance.

Credit Rating & Borrowing

Long-term bank facilities and fixed deposits are rated CARE A+; Negative (outlook revised from Stable). Short-term facilities are rated CARE A1+. Debt-to-equity ratio improved from 0.36x in FY24 to 0.30x in FY25.

⚙️ Operational Drivers

Raw Materials

Chrysotile fiber is the primary raw material for the roofing segment; its cost is considered the 'new normal' following recent price volatility.

Capacity Expansion

Current capacity is dispersed across 13 pan-India manufacturing locations. Planned expansion includes adding one new plant for the Vnext division in the current year.

Raw Material Costs

Raw material costs for the roofing segment remain high, necessitating price increases to maintain normal margins. PBILDT margins improved in Q1FY26 partly due to softening raw material prices.

Manufacturing Efficiency

Inventory turnover improved from 97 days in FY24 to 95 days in FY25, indicating better operational efficiency.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

The company is executing a strategic shift from legacy roofing to new-age businesses (Vnext and Atum Solar) to reach a 50:50 revenue mix by FY25. This is supported by adding new manufacturing capacity for Vnext, where margins have scaled from 8% to ~15%.

Products & Services

V-Boards, V-Panels, Atum Solar panels, and Roofing sheets.

Brand Portfolio

Vnext, Atum, and Visaka.

New Products/Services

Vnext products (boards and panels) and Atum Solar panels are the primary new-age growth drivers, with Vnext margins now exceeding 14-15%.

Market Expansion

Expansion is focused on the Vnext space due to rapid acceptance; the company is adding a new plant this year to meet growing demand.

🌍 External Factors

Industry Trends

There is a significant industry shift toward sustainable building materials. Plywood manufacturers are becoming more active in protecting their market share against fiber-cement board alternatives like Vnext.

Competitive Landscape

Key competition comes from the plywood industry, which is reacting to the growth of fiber-cement boards and panels.

Competitive Moat

The company possesses a niche moat in the Vnext space, where it is 'least impacted' during downtrends compared to competitors. This advantage is sustained by 40+ years of experience and a pan-India manufacturing footprint.

Macro Economic Sensitivity

Global economic growth declined from 3.3% in 2023 to 3.2% in 2024, impacting global manufacturing and supply chains.

Consumer Behavior

Consumers are increasingly shifting toward new-age, sustainable building materials, driving the 25% YoY growth in the Vnext division.

Geopolitical Risks

Supply chain disruptions and weak consumer sentiment in advanced economies are cited as risks to global growth.

⚖️ Regulatory & Governance

Industry Regulations

The company complies with Secretarial Standards and the Companies Act, 2013. It maintains internal financial controls to ensure compliance with all applicable laws.

⚠️ Risk Analysis

Key Uncertainties

Volatility in Chrysotile fiber prices and the intensity of competition from the plywood sector are the primary business uncertainties.

Geographic Concentration Risk

Geographic risk is mitigated by 13 pan-India manufacturing locations.

Credit & Counterparty Risk

Debtor turnover cycle increased to 39 days in FY25 from 33 days in FY24 due to extended credit periods provided to customers in response to market conditions, increasing receivables to INR 194.17 Cr.