YASHOPTICS - Yash Optics

📊 NSE: YASHOPTICS 🏢 Personal Care - Indian 📅 Last Updated: 12/14/2025 15:19

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew 5.08% to INR 4,320.85 lakhs in FY25. By product segment in H1 FY25, Single Vision Lenses contributed 65.80% (slight increase from 65.11%), Progressive Lenses contributed 20.96% (down from 21.14%), Bifocal Lenses contributed 11.11% (down from 11.51%), and Special Category lenses contributed 2.13% (down from 2.24%).

Geographic Revenue Split

The company is deepening penetration in Maharashtra, Gujarat, and Rajasthan. International exports for FY25 stood at INR 532.14 lakhs (calculated on FOB basis), representing a significant focus on scaling global demand.

Profitability Margins

Gross Profit Margin improved to 72.36% in H1 FY25 from 71.34% in H1 FY24. Net Profit Ratio stood at 22.19% in FY25 compared to 21.95% in FY24. The steady rise in PAT reflects efficient taxation management and sustained bottom-line growth.

EBITDA Margin

EBITDA Margin for H1 FY25 was 30.39%, a decrease of 672 bps from 37.11% in H1 FY24. This was primarily driven by an increase in employee benefit expenses (up to INR 740.93 lakhs in FY25) and other operational costs.

Capital Expenditure

Property, plant, and equipment increased to INR 2,009.87 lakhs by Sep-24 from INR 1,924.17 lakhs in Mar-24. Capital work-in-progress stood at INR 944.02 lakhs as of Sep-24, indicating ongoing investments in manufacturing capacity.

Credit Rating & Borrowing

Finance costs reduced 28.03% from INR 170.45 lakhs in FY24 to INR 122.67 lakhs in FY25 due to lower interest expenses. The Debt-Equity ratio improved significantly by 80.92%, dropping from 0.85 to 0.16 following the equity infusion from the IPO.

⚙️ Operational Drivers

Raw Materials

Raw materials include optics and lens components. Cost of material consumed was INR 1,504.52 lakhs in FY25, representing 33% of Total Income.

Import Sources

Not specifically disclosed by country, but the company notes exposure to currency fluctuations affecting import costs, suggesting significant international procurement for lens materials.

Capacity Expansion

The company is leveraging IPO proceeds for capacity expansion and technological upgrades to meet rising export and domestic demand. Capital work-in-progress of INR 944.02 lakhs as of Sep-24 supports this expansion.

Raw Material Costs

Cost of material consumed stood at INR 1,504.52 lakhs (33% of total income) in FY25. Procurement strategies focus on managing price volatility and ensuring supply chain stability for optics manufacturing.

Manufacturing Efficiency

Driven by operational excellence and economies of scale. Depreciation increased to INR 120.34 lakhs in FY25, reflecting new asset additions aimed at improving production efficiency.

Logistics & Distribution

Distribution-related costs such as custom clearing, forwarding, and commission expenses are part of the INR 843.30 lakhs in other expenses (18.32% of Total Income).

📈 Strategic Growth

Expected Growth Rate

11.76%

Growth Strategy

Growth will be achieved through backward integration, international expansion into new export markets, and increasing market share in high-margin progressive lenses. The company is also exploring new eyewear segments like sunglasses and frames while leveraging IPO proceeds for technological upgrades.

Products & Services

Manufacturing, trading, and distribution of optics and lenses, including Single Vision Lenses, Bifocal Lenses, Progressive Lenses, and Special Category lenses.

Brand Portfolio

IRIS, Seto.

New Products/Services

Expansion into sunglasses and frames is identified as a 'Way Ahead' strategy to diversify the product portfolio beyond corrective lenses.

Market Expansion

Targeting deeper penetration in Maharashtra, Gujarat, and Rajasthan, alongside scaling production to meet international export demand which reached INR 532.14 lakhs in FY25.

🌍 External Factors

Industry Trends

The industry is growing due to increased screen time from e-commerce and social media, driving demand for vision care. An aging population is increasing the share of progressive lenses. The company is positioning itself through backward integration to capture more value.

Competitive Landscape

Faces intense price-based competition from both domestic and international lens manufacturers.

Competitive Moat

Moat is built on a strong product portfolio (IRIS, Seto), established distribution networks in Western India, and high-quality manufacturing standards. These are sustainable through continuous technological upgrades and capacity expansion.

Macro Economic Sensitivity

Sensitive to discretionary spending levels; economic slowdowns directly impact the demand for premium eyewear and lens upgrades.

Consumer Behavior

Shift toward increased demand for progressive lenses due to an increase in the average working age and higher digital device usage.

Geopolitical Risks

Trade barriers and regulatory compliance costs across different international markets pose risks to the company's export growth strategy.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Directorate of Revenue Intelligence (DRI) oversight and international regulatory compliance for exports. Must adhere to manufacturing standards for medical-grade optics.

Environmental Compliance

Not disclosed as a specific INR value, though the company adheres to chemical handling and manufacturing safety protocols.

Taxation Policy Impact

Current tax expense for FY25 was INR 320.00 lakhs on a Profit Before Tax of INR 1,298.87 lakhs, implying an effective tax rate of approximately 24.6%.

Legal Contingencies

The company received a communication from the Directorate of Revenue Intelligence (DRI) and has provided a response; the specific case value or potential liability in INR is not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Regulatory actions (DRI inquiry), raw material price volatility, and the ability to maintain quality standards across increased production volumes (Quality Risk).

Geographic Concentration Risk

High concentration in Western India (Maharashtra, Gujarat, Rajasthan), though exports (INR 532.14 lakhs) are diversifying this.

Third Party Dependencies

Dependency on suppliers for raw materials is noted as a supply chain risk, though specific supplier percentages are not disclosed.

Technology Obsolescence Risk

The company mitigates technology risk by leveraging IPO proceeds for 'technological upgrades' and focusing on 'technology innovation' in lens manufacturing.