ZENITHEXPO - Zenith Exports

📊 NSE: ZENITHEXPO 🏢 Leather / Leather Products 📅 Last Updated: 12/14/2025 15:23

💰 Financial Performance

Revenue Growth by Segment

In FY 2024-25, the Trading division revenue fell 12.3% to INR 59.41 Cr, while the Weaving division declined 11.3% to INR 9.90 Cr. For H1 FY 2025-26, Industrial Leather Hand Gloves grew 16.4% to INR 26.71 Cr, and EOU Silk Fabrics grew 43.1% to INR 5.54 Cr, though Silk Fabrics/Made-ups fell 11.3% to INR 5.16 Cr.

Geographic Revenue Split

The Export Oriented Unit (EOU) for Silk Fabrics contributed INR 5.54 Cr, representing 14.8% of total revenue in H1 FY 2025-26, up from 11.8% in the previous year's corresponding period.

Profitability Margins

Net profit margin improved significantly from 0.65% in FY 2023-24 to 2.38% in FY 2024-25 (INR 1.72 Cr). In H1 FY 2025-26, the net margin further expanded to 5.99% with a PAT of INR 2.24 Cr compared to a loss of INR 1.96 Cr in H1 FY 2024-25.

EBITDA Margin

EBITDA margin for H1 FY 2025-26 stood at 9.91% (INR 3.71 Cr) compared to 5.64% (INR 4.07 Cr) in FY 2024-25, driven by a reduction in finance costs and improved segment performance in leather gloves.

Capital Expenditure

Historical depreciation of INR 0.82 Cr was recorded in FY 2024-25; however, specific planned capital expenditure for future periods is not disclosed in available documents.

Credit Rating & Borrowing

The company was rated [ICRA]B+ (Stable) / [ICRA]A4 in October 2022, moved to 'Issuer Not Cooperating' category. Total borrowings were reduced by 60.7% from INR 7.76 Cr in March 2025 to INR 3.05 Cr by September 2025.

⚙️ Operational Drivers

Raw Materials

Silk and Leather are the primary raw materials. Cost of materials consumed was INR 14.48 Cr in H1 FY 2025-26, representing 38.7% of total revenue.

Capacity Expansion

The Spinning division (viscose, polyester, and cotton yarn) has been shut down. The company is currently focusing on improving production processes in the Weaving and Leather divisions.

Raw Material Costs

Material costs decreased slightly by 2.7% YoY in H1 FY 2025-26 to INR 14.48 Cr, down from INR 14.88 Cr, despite higher revenue, indicating better procurement or price realization.

Manufacturing Efficiency

The company is investing in improved production processes to enhance margins; however, the Weaving division remains inefficient with a net loss of INR 4.76 Cr in FY 2024-25.

Logistics & Distribution

Not specifically disclosed; included within other expenditure which represents 26.5% of H1 FY 2025-26 revenue.

📈 Strategic Growth

Expected Growth Rate

14.60%

Growth Strategy

Growth will be driven by capturing a larger share of the global industrial gloves market where India's current share is minimal. The company also expects a demand recovery in silk fabrics from the sports, apparel, and home furnishing sectors in FY 2025-26.

Products & Services

Industrial leather hand gloves, silk fabrics, velvet fabrics, and textile made-ups.

Brand Portfolio

Zenith Exports, Zenith Main Division, Zenith Textiles.

New Products/Services

The company is targeting new demand from the sports and home furnishing textile segments for its silk products.

Market Expansion

Focusing on global markets for industrial gloves to leverage the low current market share of Indian exporters.

Market Share & Ranking

Not disclosed; however, the company notes India's global share in industrial gloves is 'very minimal'.

🌍 External Factors

Industry Trends

The industry is seeing a shift with increasing demand from sports and home furnishing sectors. The industrial gloves market is viewed as a high-growth area due to low current global penetration by Indian firms.

Competitive Landscape

The company faces intense competition in the textile and leather sectors, requiring consistent investment in production efficiency.

Competitive Moat

Moat is based on cost leadership through optimization and a long-standing presence in niche silk and leather export markets. Sustainability depends on maintaining competitive pricing against global peers.

Macro Economic Sensitivity

Highly sensitive to global economic developments and changes in international demand for textile and leather products.

Consumer Behavior

Increasing consumer demand for specialized textile products in sports and apparel is driving segment strategy.

Geopolitical Risks

Trade barriers and changes in government policies regarding exports/imports are cited as significant risk factors.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to demand-supply dictated by government policies, tax regimes, and governing laws.

Taxation Policy Impact

The effective tax rate for H1 FY 2025-26 was approximately 25.8%, with a tax expense of INR 0.78 Cr on a PBT of INR 3.02 Cr.

Legal Contingencies

The company identifies litigation and labor negotiations as potential risk factors, though no specific pending case values are disclosed.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (silk/leather) and global economic instability could impact revenue by over 10-15% based on historical turnover fluctuations.