You should read the following discussion in conjunction with our Restated Consolidated Financial Information included herein as of the Fiscal 2025, 2024 and 2023, including the related notes, schedules and annexures on page 304. Our Restated Consolidated Financial Statement has been prepared in accordance with Ind AS, Section 26 of the Companies Act, the SEBI ICDR Regulations and the Guidance Note. Ind AS differs in certain material respects from Indian GAAP, IFRS and U.S. GAAP. Accordingly, the degree to which our financial statements will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the readers level of familiarity with Ind AS. As a result, the Restated Consolidated Financial Statements may not be comparable to our historical financial statements. We have included various operational and financial performance indicators in this Red Herring Prospectus, many of which may not be derived from our Restated Consolidated Financial Statements or otherwise be subject to an examination, audit or review by our auditors or any other expert. The manner in which such operational and financial performance indicators are calculated and presented, and the assumptions and estimates used in such calculations, may vary from that used by other companies in India and other jurisdictions. Investors are accordingly cautioned against placing undue reliance on such information in making an investment decision and should consult their own advisors and evaluate such information in the context of the Restated Consolidated Financial Statements and other information relating to our business and operations included in this Red Herring Prospectus. This discussion and analysis contain forward-looking statements that reflect our current views with respect to future events and our financial performance, which are subject to numerous risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements. You should also read "Forward-Looking Statements" and "Risk Factors" on pages 24 and 36, respectively, which discuss a number of factors and contingencies that could affect our business, financial condition and results of operations. Our Financial Year ends on March 31 of each year and accordingly, references to Financial Year, are to the 12-month period ended March 31 of the relevant year. Unless the context otherwise requires, in this section, references to "we", "us", "our", "the Company" or "our Company" refers to Fabtech Technologies Limited. Unless stated otherwise, industry and market data used in this Red Herring Prospectus, including in "Industry Overview" and "Our Business" on pages 157 and 201, respectively, has been obtained or derived from the report titled "Assessment of global and Indian pharmaceutical industry", dated August 2025, prepared by CRISIL MI&A. The CRISIL Report has been commissioned and paid for by our Company exclusively for the purposes of the Issue, pursuant to an engagement letter dated March 21, 2024 and is available on our Companys website at https://fabtechnologies.com/industry-report/ and has also been included in "Material Contracts and Documents for Inspection – Material Documents" on page 508. The data included herein includes excerpts from the CRISIL Report and may have been re-ordered by us for the purposes of presentation. There are no parts, data or information (which may be relevant for the proposed Issue), that have been left out or changed in any manner. Unless otherwise indicated, all financial, operational, industry and other related information derived from the CRISIL Report and included herein with respect to any particular year refers to such information for the relevant financial year. Also see, "Certain Conventions, Presentation of Financial, Industry and Market Data and Currency of Presentation – Industry and Market Data" on page 23.
OVERVIEW
We are a global company headquartered in India, specializing in turnkey engineering solutions for pharmaceuticals, biotech and healthcare companies. Our footprint spans more than 62 countries Middle East, Africa, Asia, Europe, Latin America, North America, etc. Our Company has presence across some of the key emerging economies like Bangladesh, Egypt, Ethiopia, India, Kenya, Kingdom of Saudi Arabia, Morocco, Nicaragua, Nigeria, South Africa, Turkey, UAE, USA and Tanzania. (Source: CRISIL Report). We provide extensive technical expertise and infrastructure to deliver comprehensive solutions for establishing aseptic manufacturing facilities, encompassing everything from design to certification. We offer comprehensive start to finish services in greenfield projects, encompassing disease identification, planning, designing, engineering, procurement, quality assurance, logistics management and installation and commissioning for a wide range of customers across various geographies, particularly key emerging economies. Additionally, we also offer some of our engineering solutions, which majorly include, equipment procurement and supply and logistics management, on a standalone basis, either as part of greenfield or brownfield projects. In such projects, the feasibility study, design and engineering and other execution functions are undertaken by third party solution providers, and our scope is limited to equipment supply or any other services, required by our customers. Our comprehensive solutions encompasses the entire project lifecycle of our customers and address the three key elements in pharmaceuticals, biotech and healthcare facilities, namely, bio clean air, clean water, and process. In addition to offering targeted solutions across the value chain, we also have an established track record in executing pharmaceutical projects across a diverse range of dosage forms, encompassing, liquids, solids, and semisolids. Our turnkey engineering solutions involve an extensive range of services, viz., comprehensive market analysis that combines geographic and demographic insights to understand the current and future competitive environment, disease profiling for aligning solutions to the specific needs of the target market, designing and detailed engineering of equipment tailored to the manufacturing process and the applicable quality standards, leveraging the best technologies to enhance the efficiency, reliability, and sustainability of the projects and execution and commissioning strategy. Turnkey engineering solution providers play a key role in ensuring optimal use of resources through providing comprehensive and customized solutions as per individual projects need. As integrated turnkey engineering solution providers manage every aspect of the project from conception to completion, they ensure seamless and streamlined integration between various stages of the project, thereby increasing the chances of successful implementation. Turnkey engineering solution providers have experienced teams that possesses extensive knowledge of various domains, which makes them more adept at handling complex challenges effectively.
(Source: CRISIL Report)
The COVID-19 pandemic has bolstered the necessity of investment in resilient and self-reliant healthcare infrastructure, which has created a demand for our expertise in integrating advanced manufacturing, reliable supply chains and affordable health care for various developing nations. Thus, our service portfolio of consolidating robust pharmaceutical and healthcare capabilities has offered targeted support for building infrastructure in growing economies for addressing respiratory, blood renal and oncology disorders. The value chain showcasing the role of a turnkey engineering solution provider has been represented below:
With our comprehensive bio clean air, clean water and process offerings, our expertise spans across executing diverse array of projects and solutions, including but not limited to, granulation solutions, isolator containment systems, injectable projects, encapsulation solutions, cleanroom infrastructure, cleanroom systems, cleanroom equipment, Heating, Ventilation, and Air Conditioning systems ("HVAC"), mechanical, electrical and plumbing and packaging lines. Additionally, our expertise in offering turnkey engineering solutions allows us to execute green field as well as brown field turnkey projects. Owing to our experience and nuanced execution capabilities, in addition to offering turnkey engineering solutions, we also offer standalone services which are customisable as per the requirement of our customers, and cater to specific areas of the value chain, such as, equipment procurement, equipment supply, installation and commissioning, etc. We are a part of Fabtech Group which was established in 1995 and have over twenty-nine (29) years of operating history in executing pharmaceutical turnkey projects. Our Company, Fabtech Technologies Limited, was incorporated in 2018 as Globeroute Ventures Private Limited. In order to segregate the business of FTIPL and achieve operational efficiencies, the export, laminar air flow and injectable division and modular panels division of FTIPL, were demerged into our Company, FTPL, and FTCL, respectively. Pursuant to the Demerger, the order book of FTIPL, which comprised twenty-seven (27) projects with an aggregate value of 28,716.36 lakhs were transferred to our Company. As on date of this Red Herring Prospectus, the orders transferred pursuant to the Demerger have been completed by our Company. Since incorporation and till July 31, 2025, our Company has completed fifty one (51) projects across countries, namely Saudi Arabia, Egypt, Algeria, Bangladesh, Ethiopia, Sri Lanka, United Arab Emirates. Further, during the Fiscal 2025, Fiscal 2024 and Fiscal 2023, our order book comprised, thirty-two (32), thirty-six (36) and thirty-eight (38), ongoing as well as completed turnkey projects, representing revenue from turnkey projects of 24,350.14 lakhs, 19,560.58 lakhs and 17,444.66 lakhs, respectively and constituting 74.54%, 86.50% and 90.01% of our total revenue, for the said Fiscals, respectively. We believe that as on July 31, 2025, we have a strong order book aggregating to 90,441.87 lakhs. For details, in respect of the projects executed by our Company, please see "Our Business – Case Studies" on page 215 on Red Herring Prospectus. For further details in relation to Demerger, see "History and Certain Corporate Matters - Details regarding material acquisitions or divestments of business/undertakings, mergers or amalgamation" on page 255 of this Red Herring Prospectus. Over the years, we have evolved beyond cleanroom and controlled environment design and construction to become a comprehensive turnkey engineering solutions provider for pharmaceuticals, biotechnology, and healthcare industries with capabilities including disease identification based on the geographic and demographic analysis, designing of facility and detailed engineering, ranging to detailed planning of procurement of equipment, turnkey engineering solutions, execution and commissioning strategy and culminating with training, audit and regulatory compliance. As an end-to-end solution provider, we understand that meeting specific requirements is essential for successful project execution. To achieve this, we have designed a distinctive integrated procurement system. In this system, select Associates, Promoter Group entities, and Group Companies within the ‘Fabtech Group (collectively known as "Related Entities") manufacture and supply equipment to the company ensuring our projects are executed efficiently. Our asset light approach enables us in indirectly maintaining an optimal mix of assets which are required throughout the project lifecycle, allowing us to unlock the full value potential of our assets, integrate our project execution operations and reduce our dependence on third party suppliers. We believe our business model helps us in unlocking key competencies to deliver a project from conceptualization to completion, increases cashflow within the group and gives us control over the quality of the equipment that we procure. As part of the Fabtech Group, we rely on the following Related Entities for procuring equipment and materials across the bio clean air, clean water and process divisions:
•Fabsafe Technologies Private Limited (Group Company); •Fabtech Technologies Cleanrooms Limited (Group Company); •Altair Partition Systems LLP (Promoter Group entity); and Bio Air •Advantek Air Systems Private Limited (Group Company).
•TSA Process Equipments Private Limited (Group Company) (Being acquired by Thermax Limited*)
Clean Water
•FABL International Technologies LLP (Associate); •Pacifab Technologies LLP (Promoter Group entity); and
Process •Mark Maker Engineering Private Limited (Associate and Group Company).
*
Pursuant to TSA Share Purchase Agreement, Thermax Limited acquired 51% of equity share capital of our erstwhile associate company, TSA Process Equipments Private Limited ("TSA") and finalised the terms of acquisition of the remaining 49% in a staged manner spanning over a period of two years.While we primarily execute a majority of our projects ourselves, we also engage third party contractors for executing key functions of our project, such as construction of cleanroom infrastructure, air ventilation installation systems and installation of equipment. As part of our asset-light strategy, we strategically engage our network of contractors at international sites to efficiently execute and complete projects. This approach enhances our agility and responsiveness to the distinct requirements of each project, ensuring timely delivery. By consistently strengthening our contractor relationships, we offer tailored, cost-effective solutions that align with the specific demands of the pharmaceutical, healthcare, and biotechnology sectors. This strategy also provides us with the flexibility to adapt to the dynamic and evolving global market. By strategically partnering with a diverse and reliable network of contractors globally, we can effectively scale our resources to meet project demands, ensuring optimal utilization of assets, while minimizing our capital expenditure. We are a technology driven company with a strong focus on quality, design and project development, which has allowed us to execute projects suited to our customers requirements. Through our extensive and diversified experience and systematic knowledge management practices, we have developed a digital project management system that enables efficient planning, monitoring, control and timely delivery of the pharmaceutical projects that we undertake. Our Company has created an in-house software ‘FabAssure that digitalises and automates stage wise actions right from the commencement of the project until the completion of the project. Through FabAssure, any person facing roadblocks in completion of a task can easily raise the concern digitally, which aligns the entire team to resolve the issue in a designated period of time, failing which the issue is escalated to the senior management for resolution. We believe that FabAssure has enabled us in executing our projects and daily operations on auto-mode, thereby increasing cost-efficiency, time-efficiency, production efficiency and execution efficiency. In addition to our technological capabilities, we possess a team of 94 qualified engineers as of July 31, 2025, which enable us to provide a range of turnkey engineering solutions across geographies. Our ability to plan, develop and execute projects suited to our customers requirements coupled with our understanding of their geographical and demographic conditions, has fostered strong and long term customer relationship which in turn has helped us gain higher margins for our services and better navigate competition. Over the years, as part of Fabtech Group, we have developed a track record of executing diverse, quality and technologically advanced pharmaceutical projects through our integrated service model. Our start to finish engineering solutions have been assessed and have been found to comply with ISO 45001:2018, ISO 9001:2015 and ISO 14001:2015. We have executed projects in countries, including but not limited to, Saudi Arabia, Algeria, Kenya, Sri Lanka, Palestine, South Africa, Bangladesh, Egypt, etc. Owing to our widespread geographical experience and diverse as well as nuanced service model, we have developed project execution capabilities which enable our customers adhere to stringent approval standards of international and national regulatory authorities. For further details, please refer to the chapter titled "Government and Other Approvals" on page 418 of this Red Herring Prospectus. Our turnkey services play an essential role in setting up of pharmaceuticals, biotechnology, and healthcare facilities. Given the vital importance of pharmaceutical project development and execution, we assume full responsibility for designing, building, and delivering a manufacturing facility that satisfies all regulatory requirements, ensuring a seamless transition to full-scale production. By leveraging the longstanding experience of Fabtech Group and its strategic association with leading pharmaceutical and biotechnology manufacturers, we have the capabilities to assist our clients with value added services such as product dossiers, technology transfers, staffing, sourcing of materials, etc. Owing to the dedicated efforts of Fabtech Group, towards executing the projects of our customers, coupled with its technical expertise, our Group has established customer relationship with leading manufacturers in the pharmaceuticals and biotechnology industrial sectors, across geographies. We believe this association with leading manufacturers is indicative of our quality consciousness, cost efficiency and design and technological capabilities. We intend to diversify and expand our business operations in accordance with the evolving needs of our customers and our industry. Our top five customers as per our Restated Consolidated Financial Statements, contributed to revenue from operations 18,314.42 lakhs, 14,333.70 lakhs and 14,530.00 lakhs for the Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively and constituted 56.06%, 63.39% and 74.98% of our total revenue from operations for the said period.
With a combined experience of over three decades in pharmaceutical engineering, our Promoters - Aasif Ahsan Khan, Hemant Mohan Anavkar, and Aarif Ahsan Khan, have been instrumental in shaping our Companys success, and growth trajectory. Additionally, our CEO, Ashwani Kumar Singh, leverages his extensive experience of over three decades in operations, supply chain, and materials management to provide visionary guidance to our Company. As on date of this Red Herring Prospectus, we have two wholly owned subsidiary, FT Institutions Private Limited and Fabtech Technologies LLC. Fabtech Technologies LLC has been set up in Sharjah, which has two wholly-owned subsidiaries FTS Cleanrooms LLC and Fabtech Lifecare Company. We also have two associate companies namely, FABL International Technologies LLP and Mark Maker Engineering Private Limited.
Key Performance Indicators
Sr No. Metric |
Units | As of and for the Fiscal |
||
| 2025 | 2024 | 2023 | ||
Financial Key Performance Indicators |
||||
| 17. Revenue From operations | in Lakhs | 32,666.85 | 22,613.63 | 19,379.75 |
| 18. Total Income | in Lakhs | 33,594.21 | 23,060.44 | 19,991.01 |
| 19. EBITDA | in Lakhs | 4,727.91 | 3,975.11 | 3,237.68 |
| 20. EBITDA Margin | (%) | 14.07% | 17.24% | 16.20% |
| 21. Profit/(loss) after tax for the year | in Lakhs | 4,645.30 | 2,721.74 | 2,173.37 |
| 22. Net profit Margin | (%) | 13.83% | 11.80% | 10.87% |
| 23. Return on Equity (ROE) | (%) | 30.46% | 24.65% | 27.80% |
| 24. Debt To Equity Ratio | Multiple | 0.32 | 0.07 | 0.39 |
| 25. Interest Coverage Ratio | Multiple | 21.41 | 19.83 | 11.83 |
| 26. ROCE | (%) | 24.46% | 28.76% | 29.35% |
| 27. Current Ratio | Multiple | 1.37 | 1.70 | 1.48 |
Operational Key Performance Indicators |
||||
| 28. Offer Submission | In Lakhs | 4,64,950.00 | 4,49,109.19 | 3,71,059.98 |
| 29. Order Booking | In Lakhs | 47,623.45 | 40,350.23 | 28,893.67 |
| 30. Proposal to order conversion ratio | (%) | 10.24% | 8.98% | 7.79% |
| 31. Book to bill ratio | Multiple | 1.48 | 1.80 | 1.52 |
| 32. Revenue (Other than export incentives) | In Lakhs | 32,245.88 | 22,433.50 | 19,033.41 |
Notes: a) Revenue from Operations means the Revenue from Operations as appearing in the Restated Consolidated Financial Statements. b) EBITDA refers to earnings before interest, taxes, depreciation, amortisation, gain or loss from discontinued operations and exceptional items. c) EBITDA Margin refers to EBITDA during a given period as a percentage of total income during that period. d) Net Profit Ratio/Margin quantifies our efficiency in generating profits from our revenue and is calculated by dividing our net profit after taxes by our total income. e) Return on equity (RoE) is equal to profit for the year divided by the average total equity and is expressed as a percentage. f) Debt to equity ratio is calculated by dividing the debt (i.e., borrowings (current and non-current) and current maturities of long-term borrowings) by total equity (which includes issued capital and all other equity reserves and NCI). g) Interest Coverage Ratio measures our ability to make interest payments from available earnings and is calculated by dividing EBIT by finance cost. EBIT refers to earnings before interest, taxes, gain or loss from discontinued operations and exceptional items. h) RoCE (Return on Capital Employed) (%) is calculated as EBIT divided by average capital employed. Capital employed is calculated as net worth and total debt less net deferred tax assets. i) Current Ratio is a liquidity ratio that measures our ability to pay short-term obligations (those which are due within one year) and is calculated by dividing the current assets by current liabilities. j) Offer Submission means value of proposal submitted to customers against leads and customer enquiries. k) Order Booking means customer orders which are awarded to our Company. l) Proposal to order conversion ratio is calculated by dividing the order booking with offer submission. m) Book to bill ratio is calculated by dividing order booked with revenue other than export incentive. n) Revenue (Other than export incentives) means revenue from operations other than export incentives or other operating income.
SIGNIFICANT FACTORS AFFECTING OUR FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factors" beginning on page 36 of this Red Herring Prospectus.
1. Extended Lead Generation and Conversion Failure
A substantial part of our business is project-based and generally non-recurring. We, therefore have to continuously and consistently secure new customers and projects. In the event, we are unable to win new projects by converting our leads into orders, our business results of operations and financial condition may be adversely affected.
We acquire new projects through marketing and business development efforts resulting in generation, verification and conversion of leads into orders. Additionally, we acquire orders and generate a significant number of leads based on the testimonials and referrals of our customers and third parties, who based on the quality of our services, refer our name within their network and in turn enable us in acquiring further orders. For details, please see "Our Business- Case Studies" on page 230.
The following table sets forth certain financial information in respect of the proposals submitted and concluded by our Company for the periods indicated:
Particulars |
As of and for the years ended | ||
| March 31, 2025 | March 31, 2024 | March 31, 2023 | |
Value of proposals submitted ( in lakhs)(1) |
4,64,950.00 | 4,49,109.19 | 3,71,059.98 |
Value of orders received ( in lakhs) (2) |
47,623.45 | 40,350.23 | 28,893.67 |
Proposal to order conversion ratio (in %)(3) |
10.24% | 8.98% | 7.79% |
(1)Value of proposals submitted means value of proposal submitted to customers against leads and customer enquiries. (2)Value of orders received means customer orders which are awarded to our Company. (3)Proposal to order conversion ratio is calculated by dividing the order booking with offer submission.
The table below shows our Order Book details as at Fiscals 2025, 2024 and 2022, respectively:
Particulars |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
Total Order Booking (in lakhs) |
76,173.60 | 61,306.41 | 42,464.62 |
New Order Booking (in lakhs) |
47,623.45 | 40,350.23 | 28,893.67 |
In case of our own lead generation efforts, our sales, marketing and business development teams generate leads through regular exhibitions, digital marketing, business development and sales through face-to-face meeting/client visit/ field visit, audio calling, video conference, agents, local representatives, local network partners etc., or orders generated through referrals given by customers and third parties. The leads generated are validated and classified as (i) validated opportunity, which means that the client is interested to go ahead with the requirement and therefore the lead can convert into an opportunity; (ii) parked lead, where the lead is not validated and therefore the client is not interested to go ahead with the enquiry; and (iii) organic lead, wherein the client is not ready to go ahead with the initial requirement but the sales team is able to generate an alternate requirement, therefore at this stage the leads converts into an opportunity. The sales team through regular visits at the site of the client, converts leads into orders and prepares a detailed offer containing the relevant technical details of the project base on client requirement. The offer once finalised is shared with the design team for further evaluation. We believe that our lead generation process is spread across diverse sources, and therefore enables collective and simultaneous lead generation efforts of our teams, leading to effective lead generation results. For further details, see "Our Business — Our Strengths - Efficient lead funnelling leading to higher mandate conversion " and "Our Business - Marketing and Sales" on pages 212 and 236, respectively.
We cannot assure you that we will be able to win projects by converting our leads into orders. Additionally, there is no assurance that we will be able to execute the projects of our customers in the most efficient manner. The loss of an existing customer may also impact our ability to secure new customers. There have been instances in the past, wherein our Company did not receive an order on account of non-materialisation of private leads generated by our Company into orders. In the event our lead generation efforts do not lead to procurement of orders, which match our technical expertise and are above or at par with the average value of orders that we have executed in the past, our brand value, business, results of operations and financial condition may be impacted.
2. Reliance on a few key projects makes the business vulnerable to cancellations or delays.
Our Order Book comprises expected revenues from a limited number of projects, therefore our business operations and revenue are dependent upon a limited number of projects awarded to us. The loss, reduction in scope or delay of a large project or of multiple projects could have an adverse effect on our business, results of operations, and financial condition.
The table set forth below provides our consolidated revenue from operations from our top five, top ten and top twenty projects (based on the order value), and such revenue as a percentage of total revenue in the Fiscal 2025, Fiscal 2024 and Fiscal 2023:
Particulars |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| (in lakhs) | % of total revenue | (in lakhs) | % of total revenue | (in lakhs) | % of total revenue | |
| Top five | 18,314.42 | 56.06 | 14,284.52 | 63.17 | 14,530.00 | 74.98 |
| Projects | ||||||
| Top ten | 24,078.64 | 73.71 | 19,086.76 | 84.40 | 17,067.27 | 88.07 |
| Projects | ||||||
| Top twenty | 28,645.03 | 87.69 | 20,814.61 | 92.04 | 18,567.06 | 95.81 |
| Projects | ||||||
The table set forth below provides a break-up of the top five, top ten and top twenty projects (based on the order value) which form part of our Order Book, and such orders as a percentage of total Order Book value in the Fiscal 2024, Fiscal 2023 and Fiscal 2022:
Particulars |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| (in lakhs) | % of total order book | (in lakhs) | % of total order book | (in lakhs) | % of total order book | |
Top five Projects |
29,706.28 | 62.38% | 27,180.50 | 67.36% | 21,661.09 | 74.97% |
Top ten Projects |
41,434.82 | 87.01% | 34,780.66 | 86.20% | 25,840.03 | 89.43% |
Top twenty Projects |
46,137.37 | 96.88% | 39,015.85 | 96.69% | 28,174.88 | 97.51% |
Further, in the event, our anticipated orders fail to materialize, can result in incurrence of overhead cost thereby increasing our costs relating to maintaining our skilled manpower and reduction of our margins, which may adversely affect our profitability and liquidity. All of these factors could have an adverse impact on our business. For further details, please see "Our Business – Order Book" on page 234 of this Red Herring Prospectus.
Moreover, we typically enter into formal contracts for our projects, which contain a number of obligations that are not strictly related to the delivery of services. For example, some of our contracts may require us to maintain certain insurance policies throughout the term of such agreements, or maintain testing and inspection facilities. Our inability to comply with any such terms may lead to limitation or cancellation of our engagement, negative publicity and additional costs to comply with such terms of contract. Our contracts are susceptible to risks relating to triggering of arbitration or cancellation of orders and reduction in our scope of work on account of a variety of reasons beyond our control, including but not limited to:
• shortage of funds rendering the project commercially unviable;
• change in the disease outlook of a geography resulting in reduction in demand of the proposed product; • outbreak of a pandemic or an epidemic leading to logistical restriction and unreasonable delay in execution; • decisions to scale back the development or commercialization of a product; • shift of marketing, R&D or technology spend to a competitor or internal resources; • changes in laws or regulations.
Typically, our contracts, on a case to case basis, include clauses governing termination of contracts upon mutual terms or on account of breach of terms of the contract. In case of termination our contracts require payment to be made towards the equipment and material supplied and services offered prior to such termination. There have not been any instances in the past wherein our customers requested for termination or cancellation of contracts or initiated arbitration against us to terminate their contracts with us.
In addition, cancellation of a project may result in the unwillingness or inability of a client to satisfy its existing payment obligations to us, which may in turn result in an adverse impact to our results of operations and cash flows. In order to mitigate risks relating to our dependence upon certain projects, we undertake standalone services to diversify our revenue sources. Additionally, we are also intend to undertake strategic initiatives to enter into additional geographies and service segments, to increase the number of projects that form part of our Order Book.
3. Dependence on related entities for equipment procurement presents risks in supply continuity and quality.
In order to ensure our global presence in offering engineering solutions, we have adopted what we believe to be a scalable, asset-light and less capital-intensive business model to procure equipment from our Associate, Promoter Group entities and Group Companies ("Related Entities") and third party equipment manufacturers and suppliers. Our Related Entities are engaged in the business of manufacturing equipment required for executing pharmaceutical turnkey projects. We source majority of our equipment through our Related Entities to maintain control over the cost of equipment and the quality of the equipment installed by us in a project, thereby enabling us in achieving economies of scale.
We procure our equipment and materials for our bio clean air, clean water and process verticals from the following Related Entities:
S. No. Vertical |
Name of entity | Nature of association |
1. Bio clean Air |
Fabsafe Technologies Private Limited | Group Company |
| Fabtech Technologies Cleanrooms Limited | Group Company | |
| Altair Partition Systems LLP | Promoter Group entity | |
| Advantek Air Systems Private Limited | Group Company | |
| 2. Clean water | TSA Process Equipments Private Limited | Group Company |
3. Process |
FABL International Technologies LLP | Associate |
| Pacifab Technologies LLP | Promoter Group entity | |
| Mark Maker Engineering Private Limited | Associate and Group Company |
For further details, please see "Our Business - Integrated Operations" on page 227 of this Red Herring Prospectus.
A break up of our procurement cost incurred towards purchase of equipment from our Related Entities and third party manufacturers and suppliers, and as a percentage of total revenue, during the period indicated below has been provided below:
Particulars Fiscal 2025 Fiscal 2024 Fiscal 2023
Procurement % of total Procurement % of total Procurement % of total Costs ( in procurement costs Costs ( in procurement Costs ( in procurement lakhs) lakhs) costs lakhs) costs
Expenditure 5,445.00 25.68 4,225.05 34.89% 3,769.04 36.82% incurred towards purchase of equipment through Related Entities Expenditure 15,755.10 74.32 7,884.66 65.11% 6,468.39 63.18% incurred towards purchase of equipment through third party
Particulars |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Procurement Costs ( in lakhs) | % of total procurement costs | Procurement Costs ( in lakhs) | % of total procurement costs | Procurement Costs ( in lakhs) | % of total procurement costs | |
manufacturers and suppliers |
||||||
Total procurement cost |
21,200.10 | 100.00% | 12,109.71 | 100.00% | 10,237.43 | 100.00% |
By strategically partnering with a diverse and reliable network of equipment manufacturers, we believe we can flexibly scale our resources based on project demands, ensuring optimal utilization of assets, and minimizing our capital expenditure.
Significant dependence on related parties for purchase of our equipment may result in conflict of interest in allocating business opportunities amongst our Company and our Related Entities in circumstances where our respective interests diverge. Further, we undertake business with our Related Entities through purchase orders, do not enter into definite-term agreements. Further, in the absence of formal agreements, we cannot assure you that our Promoters and Directors will not provide competitive services or otherwise compete in business lines in which we are already present or will enter into in the future or supply equipment or material at more competitive price to our competitors or supply equipment or material to us on time or at all. In the event that any conflicts of interest arise, our Promoters and Directors may make decisions regarding our operations, financial structure or commercial transactions that may not be in our shareholders best interest. It may also enable a competitor to take advantage of a corporate opportunity at our expense. Such decisions could have a material adverse effect on our business, financial condition, results of operations and prospects. Should we face any such conflicts in the future, there is no guarantee that they will be resolved in our favour. While, we believe that the transactions with our Related Entities have been conducted in the ordinary course of business, in accordance with the provisions of applicable laws and on an arms length basis and have not been prejudicial to the interests of our Company, however we cannot assure you that we shall continue to do the same in future. While, as of date of this Red Herring Prospectus, there are no material conflicts, any such present and future conflicts could have a material adverse effect on our business, results of operations and financial condition. For further details see "Our Group Companies" and "Financial Statements- Restated Financial Statements – Notes to Restated Financial Statements – Annexure VI – Note 45 Related Party Disclosure under Ind AS 24" on pages 297 and 350 respectively.
4. Geopolitical and economic instability in the GCC and MENA regions could adversely impact operations.
We are a transnational company with an experience of executing projects in pharmaceutical regions including but not limited to the GCC, MENA and ECO regions. We have in the past derived, and we believe that we will continue to derive, a significant portion of our revenue from such geographic region. As of July 31, 2025, we have completed 9 projects in the GCC region, 10 projects in the MENA region and 13 projects in the ECO and have 7, 10 and 6 ongoing projects, respectively, which are set up in the said regions. In the events we are unable to expand our operations to other regions, adverse changes in economic and political conditions of GCC, MENA and ECO regions may have an adverse impact on our business, results of operations, cash flows, and financial condition.
A break up of the number of orders booked and Order Book under execution in the GCC, MENA and ECO regions, during the preceding three Fiscals has been provided below:
Particulars |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
GCC Region |
|||
Number of orders under execution |
11.00 | 15.00 | 4.00 |
Order Book size under execution ( in lakhs) |
17,069.23 | 20,164.91 | 4,814.54 |
MENA Region |
|||
| Number of orders under execution | 24.00 | 16.00 | 7.00 |
| Order Book size under execution ( in lakhs) | 37,056.93 | 20,409.82 | 20,130.88 |
ECO Region |
|||
Particulars |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
Number of orders under execution |
11.00 | 9.00 | 5.00 |
Order Book size under execution ( in lakhs) |
16,833.01 | 19,574.30 | 17,519.20 |
Any downsizing of the scale of the project in the GCC, MENA and ECO regions or any deterioration of the financial conditions of our customers in such regions or any renegotiation of contractual terms may result in a reduction of our scope and the revenue booked against such projects. Further, there are a number of factors outside of our control that might result in the loss of a client, including changes in strategic priorities resulting in a reduced level of spending on capital expenditure; a demand for price reductions; market dynamics and financial pressures; and a change in strategy by moving more work in-house or to our competitors. Any failure to retain our customers in the GCC, MENA and ECO regions, expand the size of our business with them, or expand to new clients in new geographies could have an adverse effect on our business, profits and results of operations.
The concentration of our clients in the GCC, MENA and ECO regions exposes us to adverse economic or political circumstances in such regions, including on account of any on-going economic slowdown and inflationary trends in such economies. Any change in regulatory framework, political unrest, disruption, disturbance, or sustained downturn in the economies of countries forming part of the said region could adversely affect our clients, who could, in turn, terminate their engagements or fail to award new engagements to us. For instance, a disruption in the African credit markets could harm our business if clients are unable to obtain financing to pay for our services and equipment. In order to mitigate the risks relating to our dependency upon certain regions, we intend to undertake strategic initiatives to enter into additional geographies and service segments. Our failure to respond to such events or diversify our operations in a timely manner, could have an adverse effect on our business, financial condition, and results of operations.
5. Fixed-price contracts and varying project costs could reduce operating margins and financial stability.
Majority of our contracts with our customers are established on a fixed-price basis which commit us to a specific price well before commencement of the applicable project. In the event, our projects suffer any cost-overruns, we may be unable to pass on such additional costs to our customers.
However, actual revenues or costs may be different from those we originally estimated and may result in reduced profitability or losses on projects. The estimated project cost which has to be borne by the customer is decided by our sales team and our design team at the time of submission of proposal on the basis of the estimated bill of quantities of equipment and materials, labour, contracting charges etc., and related costs. Based on our proposal, a fixed-price contract is executed, which restricts us in recovering certain cost overruns experienced during the execution of the project. Our contracts stipulate the following conditions for recovering cost overruns:
Design and Engineering: In accordance with the terms of our contracts, we can charge additional costs incurred to our customer, during engineering study, only if the layout changes, or concept changes, or design/physical parameter changes occur on account of miscalculations or engineering design received from the customers. However, in the event the increase in the actual costs occurs on account of a lapse in the design and engineering study conducted by our Company, we shall be bound to bear the additional costs which shall incur on account of the variation in the bill of quantity.
Installation: Our contracts stipulate that if any equipment is required to be un-installed or re-installed, on account of any lapse caused by our execution team, our Company shall be required to bear the additional installation charges, and any increase in such costs cannot be claimed from the customer. However, if any additional installation or re-installation is undertaken at the behest of the customer, the cost of such procurement and installation activities shall be subject to approval by the customer.
Logistics: In accordance with the terms of the contracts executed with our customers, in the event there occurs a delay in shipment of equipment and material on account of delay in custom clearance or lapse on account of veracity and verification of documents, the additional costs incurred on account of such delay or for procuring clearance from the custom authorities in the country of origin, shall be required to be borne by our Company.
In order to mitigate the risks relating to cost-overruns, our Company has set up a negotiation team, to negotiate with our vendors on cost of materials, equipment, terms and conditions, etc. In projects, where there is a risk of cost-overrun, our negotiation team intervenes to make sure that the finalised quote of vendors is in sync with the commercial proposal which was submitted by the sales team with the client. Additionally, we maintain working relationships with a number of clearing house agents to reduce the risks relating to delay in custom clearance.
Occurrence of any such events may result in negative publicity, leading to lack of confidence of our customers in our services, increased cash flow and lower profit margins. While, there have not been any instances in the preceding three Fiscals, however occurrence of any such events may have a material adverse effect on our business, results of operations, financial condition, cash flows and future prospects.
We cannot assure you that we will not experience any cost overruns in the future. Further, the assumptions underlying our proposal are typically based on an inspection/ study that we conduct, comprising:
• undertaking a site visit along with engineers to study the project site; and
• preparing a bill of quantities comprising individual bill items for each aspect of the project, including specific construction materials, a list of equipment, labour, and contracting charges, installation costs, fixed costs (such as our employees salaries, rent, and equipment hire charges), insurance costs, bank guarantee-related costs, GST and any other taxes that may be applicable on international projects.
Our pre-engineering studies are usually conducted in a short span of time, as part of our preparation and research for a potential bid or proposal. Any significant deviations from the estimates could adversely affect our business, financial condition and results of operations.
6. Dependency on information technology systems and failure to adapt to technological changes and implementation of new technologies may adversely affect our business and financial condition:
We are dependent on information technology system in connection with carrying out our business activities and such systems form an integral part of our business. Any failure of our information technology systems could result in business interruptions, including the loss of our customers, loss of reputation and weakening of our competitive position, and could have a material adverse effect on our business, financial condition and results of operations.
We are a technology driven company and through our extensive and diversified experience and systematic knowledge management practices, we have developed a digital project management system that enables efficient planning, monitoring, control and timely delivery of the pharmaceutical projects that we undertake. Our Company has created an in-house software ‘FabAssure that digitalises and automates stage wise actions rights from the commencement of the project until the completion of the project. We are also dependent upon outsourced enterprise resource planning software such as, customer relation management to manage our lead generation, order finalisation, preparation of proposal, and offer finalisation, etc. and on human resource management system to manage human resources and related processes throughout the employee lifecycle. Accordingly, our future success depends in part on efficient functioning of our in-house software and our ability to respond to technological advancements and emerging standards and practices on a cost-effective and a timely basis. Our failure to successfully adopt such technologies in a cost-effective manner could increase our costs thereby compelling us to bid at lower margins which might lead to loss of bidding opportunities vis-?-vis such competitors.
Additionally, our information technology systems, specifically our software may be vulnerable to computer viruses, piracy, hacking or similar disruptive problems. Computer viruses or problems caused by third parties could lead to disruptions in our business activities. These systems may be potentially vulnerable to data security breaches, whether by employees or others, which may result in unauthorized persons getting access to sensitive data. We generally store dossiers for various pharmaceutical formulations of our customers, which include sensitive details regarding safety, efficacy, and quality information of a medical product. In the event, a data security breach leads to the loss of such sensitive information and other trade secrets our business operations could be compromised. We protect our computer systems from security breaches and other disruptive problems. Accordingly, we have employed security systems, including firewalls and password encryption, designed to minimize the risk of security breaches. We believe that our security measures are adequate to protect our information technology systems and sensitive data, however any disruptions in our security systems could affect the security of information stored in our computer systems, which may in turn lead to leakage of confidential and sensitive data. Though there have been no instances of information technology breach or any instance of cyber-attack in our Company during the last three (3) Financial Years, we cannot assure you that we will not encounter disruptions in the future. Further, we do not maintain the cybercrime insurance policy and subject to face losses in the absence of insurance and even in cases in which any such loss may be insured, we may not be able to recover the entire claim from insurance companies. The occurrence of any such events could adversely affect our business, interrupt our operations, subject us to increased operating costs and expose us to litigation.
7. Failure to obtain or renew or maintain our statutory and regulatory permits and approvals, required to operate our businesses:
We are required to obtain various statutory and regulatory permits and approvals to operate our business which requires us to comply with certain terms and conditions to continue our operations. As on the date of Red Herring Prospectus, there are no material approvals applied for by our Company but are yet to be received and there are no material approvals required but not obtained or applied for by our Company. Failure to obtain these permits and approvals may result in imposition of fines and penalties by the relevant regulator. Further, the said approvals and permits also require us to comply with certain terms and conditions, and in the event that we are unable to comply with any or all of these terms and conditions or seek waivers or extensions of time for complying with these terms and conditions, we may be subject to stringent restrictions on our operations. This may result in the interruption of all or some of our operations and may have an adverse effect on our business, financial condition, results and cash flow. In the event that we are unable to obtain, renew or maintain statutory permits and approvals or comply with regulatory requirements, it may result in the interruption of all or some of our operations, imposition of penalties and could materially and adversely affect our business, financial performance and reputation. In addition, we are required to obtain certain approvals in the normal course of our business such as employee provident fund, employees state insurance corporation registration and tax registrations. For further details, please see section titled "Government and Other Approvals" on page 382 of RHP. Further, our approvals and licenses are subject to numerous conditions, some of which are onerous and may require us to incur substantial expenditure in order to comply with such conditions. We may not, at all times, have all the approvals required for our business. There have been instances in the past, wherein the licenses and approvals required for operation of our Company, were obtained with a delay, resulting in execution of our business operations without such approvals for a certain period of time. We cannot assure that the approvals, licenses, registrations or permits issued to us will not be suspended or revoked, or that applicable penalties will not be imposed on us in the event of non-compliance with any terms and conditions. We may also incur substantial costs related to litigation if we are subject to significant regulatory action, which may adversely affect our business, future financial performance and results of operations.
SIGNIFICANT ACCOUNTING POLICIES
The notes to our Restated Consolidated Financial Information included those discussed in the section titled
"Restated Financial Statements" beginning on page 304 of this Red Herring Prospectus contain a summary of our significant accounting policies.
RESULTS OF OPERATIONS
The following table sets forth detailed total income data from our restated consolidated statement of profit and loss for the Fiscals 2025, 2024 and 2023, the components of which are also expressed as a percentage of Total Income for such years.
Particulars |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Rs. in Lakhs | % | Rs. in Lakhs | % | Rs. in Lakhs | % | |
i. Sale of Product |
||||||
| Sale of Products | 31,475.52 | 93.69% | 20,493.16 | 88.87% | 18,525.64 | 92.67% |
| Sale of Services | 770.36 | 2.29% | 1,940.34 | 8.41% | 507.77 | 2.54% |
ii. Other operating revenues: |
||||||
| Export incentives | 420.97 | 1.25% | 180.13 | 0.78% | 346.34 | 1.73% |
Total Revenue from Operations (i+ii) |
32,666.85 | 97.24 % | 22,613.63 | 98.06 % | 19,379.75 | 96.94 % |
Other Income |
||||||
Interest Income on |
||||||
| Interest income on Bank deposits | 238.98 | 0.71% | 111.89 | 0.49% | 114.84 | 0.57% |
Particulars |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Rs. in Lakhs | % | Rs. in Lakhs | % | Rs. in Lakhs | % | |
| Interest income on Security Deposit | 11.20 | 0.03% | 9.98 | 0.04% | 9.53 | 0.05% |
| Other interest income | 11.20 | 0.03% | 62.04 | 0.27% | - | 0.00% |
| Net foreign exchange gain/(loss) | 265.86 | 0.79% | 160.73 | 0.70% | 444.21 | 2.22% |
Reversal of provision of doubtful debts and advances |
213.63 | 0.64% | 44.12 | 0.19% | - | 0.00% |
Reversal of provision for Interest payment to MSME |
9.08 | 0.03% | 27.58 | 0.12% | - | 0.00% |
| Reversal of Provision for Employee loan | 1.08 | 0.00% | - | 0.00% | - | 0.00% |
Net gain arising on financial assets designated as FVTPL |
160.89 | 0.48% | 26.67 | 0.12% | -0.43 | 0.00% |
| Reversal of provision of Gratuity | 0.99 | 0.00% | - | 0.00% | - | 0.00% |
| Liabilities no longer required written back | 12.45 | 0.04% | - | 0.00% | 34.88 | 0.17% |
| Insurance claim received | - | 0.00% | - | 0.00% | 0.39 | 0.00% |
| Profit on disposal of fixed asset (net) | 1.35 | 0.00% | - | 0.00% | - | 0.00% |
| Profit and loss from forward contracts | - | 0.00% | - | 0.00% | 7.53 | 0.04% |
| Interest income on Loan to employees | 0.50 | 0.00% | - | 0.00% | - | 0.00% |
| Miscellaneous income | 0.14 | 0.00% | 3.81 | 0.02% | 0.31 | 0.00% |
iii. Total Other Income |
927.36 | 2.76% | 446.81 | 1.94% | 611.26 | 3.06% |
Total Income (i+ii+iii) |
33,594.21 | 100.00 % | 23060.44 | 100.00 % | 19,991.01 | 100.00 % |
Our Companys total income has increased to to 33,594.21 Lakhs in Fiscal 2025 from 23,060.44 Lakhs in Fiscal 2024 and 19,991.01 Lakhs in Fiscal 2023. The increase in Fiscal 2025 over Fiscal 2024 is 45.68%, while the increase in total income in Fiscal 2024 over Fiscal 2023 is 15.35%. A region wise bifurcation of the number of order (standalone as well as turnkey) executed by our Company and the cumulative revenue earned by our Company during the preceding three Fiscals has been provided below:
Region s |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | ||||||
| Number of order executed * | Revenue ( lakhs) | Percentag e of Total Revenue (%) | Number of order executed * | Revenue ( lakhs) | Percentage of Total Revenue (%) | Number of order executed * | Revenue ( lakhs) | Percentag e of Total Revenue (%) | |
| MENA | 20 | 3,159.16 | 9.67 | 20 | 8,514.08 | 37.65 | 27 | 7,267.08 | 37.50 |
| GCC | 64 | 16,252.2 | 49.75 | 15 | 7,208.56 | 31.88 | 15 | 7,821.10 | 40.36 |
| 1 | |||||||||
| ECO | 17 | 5,914.41 | 18.11 | 16 | 5,874.13 | 25.98 | 13 | 2,426.71 | 12.52 |
| ZONE | |||||||||
| SADA | 3 | 2,399.67 | 7.35 | 4 | 623.62 | 2.76 | 4 | 89.23 | 0.46 |
| C | |||||||||
| SEA | 29 | 4,672.11 | 14.30 | 5 | 371.12 | 1.64 | 6 | 1,313.56 | 6.78 |
| EURO | 2 | 262.68 | 0.80 | 2 | 22.12 | 0.10 | 3 | 454.73 | 2.35 |
| PE | |||||||||
| AMER | 1 | 6.61 | 0.02 | - | - | - | 2 | 7.34 | 0.04 |
| ICA | |||||||||
Total |
136 | 32,666.8 | 100.00 | 22,613.6 | 100.00 | 19,379.7 | 100.00 | ||
| 5 | 62 | 3 | 70 | 5 | |||||
*Includes projects which were spilled-over from the previous Financial Year
A break up of revenue from operations earned by our Company from start to finish (turnkey) services and standalone services during the preceding three years, as a percentage of our total revenue from operations, has been provided below:
Particulars |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Revenue from operations ( lakhs) | Percentage of total revenue* (%) | Revenue from operations ( lakhs) | Percentage of total revenue* (%) | Revenue from operations ( lakhs) | Percentage of total revenue* (%) | |
Turnkey services |
24,350.14 | 75.51 | 19,560.58 | 87.43 | 17,444.66 | 91.67 |
Standalone services |
7,895.74 | 24.49 | 2,811.35 | 12.57 | 1,586.21 | 8.33 |
Total |
32,245.88 | 100.00 | 22,371.93 | 100.00 | 19,030.87 | 100.00 |
The following table sets forth select financial data from our restated consolidated statement of profit and loss for the Financials years 2025, 2024 and 2023 the components of which are also expressed as a percentage of total income for such years. A bifurcation of revenue from operations earned by our Company from the top ten countries during the preceding three Fiscals, as a percentage of our total revenue from operations, has been provided below:
Country |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Revenue from operations ( lakhs) | Percentage of total revenue (%) | Revenue from operations ( lakhs) | Percentage of total revenue (%) | Revenue from operations ( lakhs) | Percentage of total revenue (%) | |
| Saudi Arabia | 9,471.57 | 28.99% | 6,914.79 | 30.58% | 7,781.88 | 40.15% |
| UAE | 6,374.53 | 19.51% | - | - | - | - |
| India | 4,248.46 | 13.01% | - | - | - | - |
| Iran | 3,810.22 | 11.66% | - | - | - | - |
| Uganda | 2,377.57 | 7.28% | - | - | - | - |
| Kenya | 1,289.27 | 3.95% | 3,674.69 | 16.25% | 10.25 | 0.05% |
| Iraq | 1,202.48 | 3.68% | 2,642.42 | 11.69% | - | - |
| Algeria | 889.00 | 2.72% | 4,467.56 | 19.76% | 487.01 | 2.51% |
| Nigeria | 625.99 | 1.92% | 318.44 | 1.41% | 286.49 | 1.48% |
| Lebanon | 515.08 | 1.58% | ||||
| Sri Lanka | 165.06 | 0.51% | 1,369.80 | 6.06% | 1,070.11 | 5.52% |
| Palestine | 3.15 | 0.01% | 930.76 | 4.12% | 1,153.29 | 5.95% |
| South Africa | - | - | 614.88 | 2.72% | - | - |
| Bangladesh | 3.41 | 0.01% | 354.15 | 1.57% | 997.54 | 5.15% |
| Egypt | 161.64 | 0.49% | 348.55 | 1.54% | 5,221.47 | 26.94% |
Total |
31,137.43 | 95.32% | 21,636.04 | 95.70% | 17,008.04 | 87.75% |
Particulars |
Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | ||||
| Rs. in Lakhs | % of Total Income | % Rs. in Lakhs | of Income | Total | Rs. in Lakhs | % of Total Income | |
Income |
|||||||
Revenue from operations |
32,666.85 |
||||||
| 97.24% | 22,613.63 | 98.06% | 19,379.75 | 96.94% | |||
| Other income | 927.36 | 2.76% | 446.81 | 1.94% | 611.26 | 3.06% | |
Total income |
33,594.21 | 100.00% | 23,060.44 | 100.00% | 19,991.01 | 100.00% | |
Expenditure |
|||||||
Cost of raw material consumed |
19.54 | 0.06% | 40.53 | 0.18% | - | 0.00% | |
Purchase of Stock- in-trade |
21,200.10 | 63.11% | 12,109.71 | 52.51% | 10,237.43 | 51.21% | |
Changes in inventories of stock-in-trade |
-3,033.70 | -9.03% | 1.19 | 0.01% | -1,072.95 | -5.37% | |
Employee benefit expenses |
3,433.65 | 10.22% | 1,978.01 | 8.58% | 1,911.39 | 9.56% | |
| Finance Cost | 208.63 | 0.62% | 189.98 | 0.82% | 257.55 | 1.29% | |
| Depreciation and | |||||||
| Amortization | 260.78 | 0.78% | 208.11 | 0.90% | 190.26 | 0.95% | |
Particulars |
Fiscal 2025 |
Fiscal 2024 |
Fiscal 2023 |
|||||
| Rs. in Lakhs | % of Total Income | Rs. in Lakhs | %of Income Total | Rs. in Lakhs |
Total Income |
|||
| Other Expenses | 7,278.92 | 21.67% | 5,094.02 | 22.09% | 6,041.23 |
30.22% |
||
Total expenses |
29,367.92 | 87.42% | 19,621.56 | 85.09% | 17,564.91 |
87.86% |
||
Profit before |
||||||||
Share of profits in associate entity, exceptional items and tax |
4,226.29 | 12.58% | 3,438.88 | 14.91% | 2,426.10 |
12.14% |
||
Share of Profit from associate |
32.22 | 0.10% | 138.14 | 0.60% | 363.77 |
1.82% |
||
Profit before exceptional items and tax |
4,258.51 | 12.68% | 3,577.02 | 15.51% | 2,789.87 |
13.96% |
||
| Exceptional items | 1,784.86 | 5.31% | - | - | - |
- |
||
Profit before tax |
6,043.37 | 17.99% | 3,577.02 | 15.51% | 2,789.87 |
13.96% |
||
| - Current tax | 1,463.15 | 4.36% | 896.00 | 3.89% | 670.00 |
3.35% |
||
- (Excess) / Short provision for tax relating to prior year |
-1.15 | 0.00% | - | - | - |
- |
||
| - Deferred tax | -63.93 | -0.19% | -40.72 | -0.18% | -53.50 |
-0.27% |
||
Net Profit for the year |
4,645.30 | 13.83% | 2,721.74 | 11.80% | 2,173.37 | 10.87% |
||
Cost of materials consumed.
Cost of materials consumed comprises procuring equipment and materials across the Bio Clean Air, Clean Water and Process divisions. Cost of materials consumed accounted for merely 0.06 % of our total income for the Fiscal 2025.
Purchase of Stock-in-trade
Purchase of stock-in-trade accounted for 63.11%, 52.51% and 51.21% of our total income for the Fiscal 2025, Fiscal 2024, and Fiscal 2023 respectively.
Changes in inventories of finished goods and work-in-progress
Changes in inventories of stock in trade consists of costs attributable to an increase or decrease in inventory levels during the relevant financial period in stock in trade. Changes in inventories of stock-in-trade accounted for -9.03%, 0.01% and -5.37% of our total income for the Fiscal 2025, Fiscal 2024, and Fiscal 2023 respectively.
Employee benefits expense
Employee benefits expense includes (i) salaries and wages, and bonus; (ii) contribution to provident fund and other funds, (iii) Staff welfare expenses, Gratuity and leave obligation. Employee benefits expense accounted for 10.22%, 8.58% and 9.56% of our total income for Fiscal 2025, Fiscal 2024, and Fiscal 2023 respectively.
Finance costs
Finance costs include interest expense on borrowings and to creditors, Processing and commitment charges, Interest Expense on Lease Liabilities and delay in payment and bank charges & other borrowing costs. Finance costs accounted for 0.62%, 0.82%, and 1.29% of our total income for Fiscal 2025, Fiscal 2024, and Fiscal 2023.
Depreciation and amortization expenses
Depreciation represents depreciation on our property, plant and equipment. Amortization represents amortization of computer software. Depreciation is calculated on a straight line method over the estimated useful life of all assets, these lives are in accordance with Schedule II to the Companies Act, 2013 or as per the best estimation of the management. The estimated useful lives, residual value and depreciation method are reviewed at the end of each reporting period, with the effect of any change in estimate accounted for on a prospective basis. Depreciation and amortization expense accounted for 0.78%, 0.90% and 0.95% of total income for the Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively.
Other expenses
Other expenses include majorly of Project erection and commissioning expenses, Business Promotion and Advertising, Travelling and Conveyance expenses and Legal and professional charges. Other expenses accounted for 21.67%, 22.09%, and 30.22% of our total income for the Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively.
Fiscal 2025 compared with Fiscal 2024
Total Income
The total income increased by 10,533.78 Lakhs, or 45.68%, from 23,060.44 Lakhs in Fiscal 2024 to 33,594.21 Lakhs in Fiscal 2025. This increase was primarily due to a rise in revenue from operations.
Revenue from Operations
Revenue from operations increased by 10,053.21 Lakhs or 44.46%, from 22,613.63 Lakhs in Fiscal 2024 to 32,666.85 Lakhs in Fiscal 2025. The increase was due to:
• Sale of Products: Sale of products increased by 10,982.36 Lakhs or 53.59%, from 20,493.16 Lakhs in Fiscal 2024 to 31,475.52 Lakhs in Fiscal 2025. The increase was due to business from 2 new subsidiaries and business acquired by one of our subsidiary.
• Sale of Services: Revenue from the sale of services decreased by 1,169.98 Lakhs or 60.30%, from 1,940.34 Lakhs in Fiscal 2024 to 770.36 Lakhs in Fiscal 2025.
• Export Incentives: Export incentives increased by 240.84 Lakhs or 133.70%, from 180.13 Lakhs in Fiscal 2024 to 420.97 Lakhs in Fiscal 2025. The increase was due to increase in sale of products.
Other Income
Other income increased by 480.55 Lakhs or 107.55%, from 446.81 Lakhs in Fiscal 2024 to 927.36 Lakhs in Fiscal 2025. Reasons for the decrease include:
• Interest Income: Interest income on bank deposit increased by 127.09 Lakhs, from 111.89 Lakhs in Fiscal 2024 to 238.98 Lakhs in Fiscal 2025.
• Foreign Exchange Gains: Net foreign exchange gain/loss increased by 105.13 Lakhs, from 160.73 Lakhs in Fiscal 2024 to 265.86 Lakhs in Fiscal 2025, due to favorable currency movements.
• Reversal of provision of doubtful debts and advances: Reversal of provision of doubtful debts and advances increased by 169.52 Lakhs, from 44.12 Lakhs in Fiscal 2024 to 213.63 Lakhs in Fiscal 2025.
• Net gain arising on financial assets designated as FVTPL: Net gain increased by 134.22 Lakhs from 26.67 Lakhs in Fiscal 2024 to 160.89 Lakhs in Fiscal 2025.
Total Expenditure
Total expenses increased by 9,746.36 Lakhs or 49.67%, from 19,621.56 Lakhs in Fiscal 2024 to 29,367.92 Lakhs in Fiscal 2025. The increase in expenses was primarily driven by higher purchases of stock-in-trade, which rose by 9,090.39 Lakhs, increase in other expenses by 2,184.90 Lakhs, decrease in Changes in Inventories of stock-in-trade by 3,034.90 Lakhs, as well as increases in employee benefits.
Cost of Materials Consumed
The cost of raw materials consumed decreased by 20.99 Lakhs, from 40.53 lakhs in Fiscal 2024 to 19.54 Lakhs in Fiscal 2025.
The purchase of stock-in-trade increased by 9,090.39 Lakhs, or 75.07%, rising from 12,109.71 Lakhs in Fiscal 2024 to 21,200.10 Lakhs in Fiscal 2025. This growth was driven by higher procurement of goods to support the increased sale of products.
Changes in Inventories of Stock-in-trade
Inventories of stock-in-trade showed a negative change of 3,034.90 Lakhs, moving from a balance of 1.19 Lakhs in Fiscal 2024 to negative balance of 3,033.70 Lakhs in Fiscal 2025.
Employee Benefits Expense
Employee benefits expense increased by 1,455.63 Lakhs (73.59%) from 1,978.01 Lakhs in Fiscal 2024 to 3,433.65 Lakhs in Fiscal 2025. This was mainly due to a rise in salaries and wages, which went up by 1,415.45 Lakhs to 3,252.55 Lakhs. Staff welfare expenses increased by 22.80 Lakhs to 64.76 Lakhs, while gratuity expenses decreased by 7.31 Lakhs to 24.09 Lakhs. Overall, employee benefits as a percentage of total income slightly increased from 8.58% in FY 2024 to 10.22% in FY 2025.
Finance Costs
Finance costs increased by 18.65 Lakhs (9.82%), from 189.98 Lakhs in Fiscal 2024 to 208.63 Lakhs in Fiscal 2025, driven by a reduction in interest on borrowings by 23.23 Lakhs. Processing and commitment charges increased by 22.63 Lakhs, interest on lease liabilities increased by 19.25 Lakhs, overall finance costs as a percentage of total revenue slightly decreased as a result improved financial management.
Depreciation and Amortization Expense
Depreciation and amortization expense increased by 52.67 Lakhs (25.31%), from 208.11 Lakhs in Fiscal 2024 to 260.78 Lakhs in Fiscal 2025, primarily due to the addition of new assets, which contributed to higher depreciation by 43.73 Lakhs and amortization by 8.93 Lakhs.
Other Expenses
Other expenses increased by 2,184.90 Lakhs, or 42.89%, from 5,094.02 Lakhs in Fiscal 2024 to 7,278.92 Lakhs in Fiscal 2025. The increase was primarily due to
• An increase in Project erection and commissioning expense to 2,240.03 Lakhs in Fiscal 2025 from 1,504.33 Lakhs in Fiscal 2024.
• An increase in freight and forwarding expenses to 1,314.61 Lakhs in Fiscal 2025 from 549.85 Lakhs in Fiscal 2024.
• An increase in travelling and conveyance expenses to 880.28 Lakhs in Fiscal 2025 from 583.62 Lakhs in Fiscal 2024.
• An increase in rent expenses to 219.21 in Fiscal 2025 compared to 25.93 Lakhs Fiscal 2024.
Share of Profit from Associates
The share of profit from associates decreased by 105.91 Lakhs, or 76.67%, from 138.14 Lakhs in Fiscal 2024 to 32.22 Lakhs in Fiscal 2025.
Exceptional items
Income from exceptional items increased by 1,784.86 Lakhs from nil in Fiscal 2024 to 1,784.86 Lakhs in Fiscal 2025. This was due to profits on sales of Unlisted shares.
Profit Before Tax
Profit before tax increased by 2,466.35 Lakhs, or 68.95%, from 3,577.02 Lakhs in Fiscal 2024 to 6,043.37 Lakhs in Fiscal 2025. This was mainly due to income from exceptional items.
Tax Expense
Total tax expense increased by 542.79 Lakhs, or 63.46%, from 855.28 Lakhs in Fiscal 2024 to 1,398.07 Lakhs in Fiscal 2025. This was due to an increase in current tax by 567.15 lakhs and an increase in deferred tax by 23.21 lakhs.
Profit for the Year
For the various reasons discussed above, profit for the year increased by 1,923.56 Lakhs, or 70.67%, from 2,721.74 Lakhs in Fiscal 2024 to 4,645.30 Lakhs in Fiscal 2025. Profit after tax as a percentage of total income stood at 13.83% for Fiscal 2025, compared to 11.80% for Fiscal 2024.
Fiscal 2024 compared with Fiscal 2023
Total Income
The total income increased by 3,069.42 Lakhs, or 15.35%, from 19,991.01 Lakhs in Fiscal 2023 to 23,060.44 Lakhs in Fiscal 2024. This increase was primarily due to a rise in revenue from operations.
Revenue from Operations
Revenue from operations increased by 3,233.88 Lakhs or 16.69%, from 19,379.75 Lakhs in Fiscal 2023 to 22,613.63 Lakhs in Fiscal 2024. The increase was due to:
• Sale of Products: Sale of products increased by 1,967.51 Lakhs or 10.62%, from 18,525.64 Lakhs in Fiscal 2023 to 20,493.16 Lakhs in Fiscal 2024. The increase was due to higher demand.
• Sale of Services: Revenue from the sale of services increased by 1,432.57 Lakhs or 282.13%, from 507.77 Lakhs in Fiscal 2023 to 1,940.34 Lakhs in Fiscal 2024. The increase was due to expansion of service offerings and client engagement.
• Export Incentives: Export incentives decreased by 166.21 Lakhs or 47.99%, from 346.34 Lakhs in Fiscal 2023 to 180.13 Lakhs in Fiscal 2024. The decrease was due to changes in export incentive policies.
Other Income
Other income decreased by 164.45 Lakhs or 26.90%, from 611.26 Lakhs in Fiscal 2023 to 446.81 Lakhs in Fiscal 2024. Reasons for the decrease include:
• Interest Income: Interest income on bank deposit decreased by 2.95 Lakhs, from 114.84 Lakhs in Fiscal 2023 to 111.89 Lakhs in Fiscal 2024.
• Foreign Exchange Gains: Net foreign exchange gain/loss reduced by 283.49 Lakhs, from 444.21 Lakhs in Fiscal 2023 to 160.73 Lakhs in Fiscal 2024, due to unfavorable currency movements.
• Liabilities no longer required written back and loss on forward contract: Liabilities no longer required written back and loss on forward contract decreased by 34.88 Lakhs and 7.53 lakhs respectively.
Total Expenditure
Total expenses increased by 2,056.05 Lakhs or 11.71%, from 17,564.91 Lakhs in Fiscal 2023 to 19,621.56 Lakhs in Fiscal 2024. The increase in expenses was primarily driven by higher purchases of stock-in-trade, which rose by 1,872.28 Lakhs and increase in Changes in Inventories of Finished Goods and Work-in-Progress by 1074.14 Lakhs, as well as increases in employee benefits and other expenses.
Cost of Materials Consumed
The cost of raw materials consumed increased by 40.53 Lakhs, from nil in Fiscal 2023 to 40.53 Lakhs in Fiscal 2024.
Purchases of Stock-in-Trade
The purchase of stock-in-trade increased by 1,872.28 Lakhs, or 18.29%, rising from 10,237.43 Lakhs in Fiscal 2023 to 12,109.71 Lakhs in Fiscal 2024. This growth was driven by higher procurement of goods to support the increased sale of products.
Changes in Stock-in-Trade
Inventories of Stock-in-Trade showed a positive change of 1,074.14 Lakhs, moving from a negative balance of 1,072.95 Lakhs in Fiscal 2023 to 1.19 Lakhs in Fiscal 2024.
Employee Benefits Expense
Employee benefits expense increased by 66.63 Lakhs (3.49%) from 1,911.39 Lakhs in FY 2023 to 1,978.01 Lakhs in FY 2024. This was mainly due to a rise in salaries and wages, which went up by 64.36 Lakhs to 1,837.10 Lakhs. Staff expenses increased by 3.72 Lakhs to 41.96 Lakhs, while gratuity expenses rose by 7.30 Lakhs to 31.40 Lakhs. Overall, employee benefits as a percentage of total revenue slightly decreased from 9.56% in FY 2023 to 8.58% in FY 2024.
Finance Costs
Finance costs decreased by 67.57 Lakhs (26.24%), from 257.55 Lakhs in Fiscal 2023 to 189.98 Lakhs in Fiscal 2024, driven by a reduction in interest on trade payable by 46.44 Lakhs. Processing and commitment charges decreased by 39.50 Lakhs, interest on lease liabilities by 4.27 Lakhs, interest on delayed tax payments by 22.63 Lakhs, overall finance costs fell due to improved financial management and debt reduction.
Depreciation and Amortization Expense
Depreciation and amortization expense increased by 17.85 Lakhs (9.38%), from 190.26 Lakhs in Fiscal 2023 to 208.11 Lakhs in Fiscal 2024, primarily due to the addition of new assets, which contributed to higher depreciation by 11.56 Lakhs and amortization by 6.30 Lakhs.
Other Expenses
Other expenses decreased by 947.20 Lakhs, or 15.68%, from 6,041.23 Lakhs in Fiscal 2023 to 5,094.02 Lakhs in Fiscal 2024. The reduction was achieved through cost-cutting measures and operational efficiencies. This was primarily achieved due
• A decrease in Project erection and commissioning expense to 1,504.33 Lakhs in Fiscal 2024 from 1,788.78 lakhs in Fiscal 2023.
• A decrease in business promotion and advertising expenses to 1,486.44 Lakhs in Fiscal 2024 from 1,929.33 Lakhs in Fiscal 2023.
• A decrease in freight and fees on sales to 549.85 Lakhs in Fiscal 2024 from 802.54 Lakhs in Fiscal 2023.
• A Provision for Doubtful Debt and advances nil in Fiscal 2024 compared to 162.36 Lakhs Fiscal 2023.
Share of Profit from Associates
The share of profit from associates decreased by 225.64 Lakhs, or 62.03%, from 363.77 Lakhs in Fiscal 2023 to 138.14 Lakhs in Fiscal 2024.
Profit Before Tax
Profit before tax increased by 787.15 Lakhs, or 28.21%, from 2,789.87 Lakhs in Fiscal 2023 to 3,577.02 Lakhs in Fiscal 2024. This was mainly due to higher revenue and controlled expenses.
Tax Expense
Total tax expense increased by 238.78 Lakhs, or 38.73%, from 616.50 Lakhs in Fiscal 2023 to 855.28 Lakhs in Fiscal 2024. The increase was due to an increase in current tax by 226.00 lakhs and a deferred tax credit by 12.78 lakhs.
Profit for the Year
For the various reasons discussed above, profit for the year increased by 548.37 Lakhs, or 25.23%, from 2,173.37 Lakhs in Fiscal 2023 to 2,721.74 Lakhs in Fiscal 2024. Profit after tax as a percentage of total income stood at 11.80% for Fiscal 2024, compared to 10.87% for Fiscal 2023.
Cash Flows
The following table sets forth certain information relating to our cash flows under Ind AS for the Fiscal 2025, Fiscal 2024 and Fiscal 2023:
(All amounts in Lakhs)
Particulars |
Fiscal | Fiscal | Fiscal |
| 2025 | 2024 | 2023 | |
| Net cash (used in)/ generated from operating activities | (3,614.48) | 6,042.90 | (1,388.90) |
| Net cash (used in)/ generated from investing activities | (2,004.65) | (3,000.37) | 189.07 |
| Net cash (used in)/ generated from financing activities | 3,625.52 | (1,196.32) | 1,196.91 |
| Net increase/ (decrease) in cash and cash equivalents | (1,993.61) | 1,846.23 | (2.92) |
| Cash and Cash Equivalents at the beginning of the period | 2,899.17 | 1,052.94 | 1,055.85 |
| Cash and Cash Equivalents at the end of the period | 905.57 | 2,899.17 | 1,052.94 |
Net cash generated from operating activities
Net cash used in operating activities in the Fiscal 2025 was 3,614.48 Lakhs and our profit before tax that period was 6,043.37 Lakhs. The difference was primarily attributable to Depreciation of 260.78 Lakhs, Finance costs of 208.63 Lakhs, Share of (Profit) / Loss of Associates of (32.22) Lakhs, Interest Income of (261.38) Lakhs and thereafter change in working capital of (6,729.37) Lakhs respectively, resulting in gross cash used in operations at 2,646.82 Lakhs. We have income tax paid of 967.65 Lakhs.
Net cash generated from operating activities in the Fiscal 2024 was 6,042.90 Lakhs and our profit before tax that period was 3,577.02 Lakhs. The difference was primarily attributable to Depreciation of 208.11 Lakhs, Finance costs of 189.97 Lakhs, Share of (Profit) / Loss of Associates of (138.14) Lakhs, Interest Income of (183.91) Lakhs and thereafter change in working capital of 3,262.00 Lakhs respectively, resulting in gross cash generated from operations at 6,825.67 Lakhs. We have income tax paid of 782.77 Lakhs.
Net cash used in operating activities in the Fiscal 2023 was 1,388.90 Lakhs and our profit before tax that period was 2,789.87 Lakhs. The difference was primarily attributable to Depreciation of 190.26 Lakhs, Finance costs of 211.11 Lakhs, Share of (Profit) / Loss of Associates of (363.77) Lakhs, Interest Income of (124.36) Lakhs and thereafter change in working capital of (3,158.21) Lakhs respectively, resulting in gross cash used in operations at 366.85 Lakhs. We have income tax paid of 1,022.05 Lakhs.
Net cash used in investing activities
In the Fiscal 2025, our net cash used in investing activities was 2,004.65 Lakhs, which was primarily for Net proceeds from (purchase)/sale of investments was 1,618.32 Lakhs, Goodwill on acquisition of subsidiaries was (2,889.28) Lakhs, Net proceeds sale of Equity shares of subsidiaries, associates and other entities was 2,371.20 Lakhs, Net proceeds from (investment)/maturity in/of fixed deposits was (877.41) Lakhs, Interest received of 250.18 Lakhs and Payment for purchase of property, plant and equipment and intangible assets of (2,478.20) Lakhs during the said year.
In the Fiscal 2024, our net cash used in investing activities was (3,000.37) Lakhs, which was primarily for Net proceeds from (purchase)/sale of investments was (2,068.35) Lakhs, Goodwill on acquisition of subsidiaries was (1,610.42) Lakhs, (Investment)/Redemption in/of debentures was 1,012.50 Lakhs, Net proceeds from (investment)/maturity in/of fixed deposits was (386.11) Lakhs, Interest received of 173.93 Lakhs and Payment for purchase of property, plant and equipment and intangible assets of (121.92) Lakhs during the said year.
In the Fiscal 2023, our net cash generated from investing activities was 189.07 Lakhs, which was primarily for Net proceeds from (investment)/maturity in/of fixed deposits was 106.60 Lakhs, Interest received of 114.84 Lakhs and Payment for purchase of property, plant and equipment and intangible assets of (32.37) Lakhs during the said year.
Net cash generated from/ used in financing activities.
In the Fiscal 2025, our net cash generated from financing activities was 3,625.52 Lakhs. This was primarily due to (Repayment)/Proceeds from borrowings of 4,474.34 Lakhs, Payment of Dividend of (485.95) Lakhs, Finance cost of (177.62) Lakhs and Payment towards Lease Liability of (185.25) Lakhs.
In the Fiscal 2024, our net cash used in financing activities was 1,196.32 Lakhs. This was primarily due to (Repayment)/Proceeds from borrowings of (2,440.97) Lakhs, Proceeds from issuance of equity share capital of 1,569.48 Lakhs, Finance cost of (178.21) Lakhs and Payment towards Lease Liability of (146.62) Lakhs.
In the Fiscal 2023, our net cash generated from financing activities was 1,196.91 Lakhs. This was primarily due to (Repayment)/Proceeds from borrowings of 1,531.33 Lakhs, Finance cost of (195.08) Lakhs and Payment towards Lease Liability of (139.34) Lakhs.
LIQUIDITY AND CAPITAL RESOURCES
We fund our operations primarily with cash flow from operating activities and borrowings / credit facilities from banks. Our primary use of funds has been to pay for our working capital requirements and capital expenditure and for the expansion of our manufacturing facilities. We evaluate our funding requirements regularly considering the cash flow from our operating activities and market conditions. In case our cash flows from operating activities do not generate sufficient cash flows, we may rely on other debt or equity financing activities, subject to market conditions.
Our Company had Consolidated cash and cash equivalents of 905.56 Lakhs as of March 31, 2025, 2,899.17 Lakhs as of March 31, 2024, and 1,052.94 Lakhs as of March 31, 2023.
We have long term borrowings and long-term lease liability (includes current maturities of long term borrowings) of 53.44 Lakhs and 2,661.61 Lakhs as of March 31, 2025 and Short term borrowing and short term lease liability of 5,408.64 Lakhs and 258.82 Lakhs as of March 31, 2025 as per restated Consolidated financial statement.
A brief summary of the financial indebtedness of our outstanding borrowings, on a consolidated basis, as on July 31, 2025 is set out below:
Sr. No. Nature of Facility |
Amount Sanctioned (in lakhs) |
Amount Outstanding (ason July 31, 2025) (in lakhs) | Rate of Interest/ Commission | Tenure / Tenor | Security |
Loans availed by our Company Secured Loans |
|||||
HDFC Bank Limited |
|||||
1. Vehicle Loan |
34.33 | 8.58 | 7.96% per annum | 60 months | Toyota Fortuner Legender 4*2 Our Promoter and Executive Director, Hemant Mohan Anavkar is a co-borrower in this loan. |
2. Auto Loan |
19.35 | 14.65 | 9.30% per annum | 59 months | New Grand Vitara Strong Hybrid Alpha. Plus 1.5 L CVT |
3. Overdraft Facility |
1,000 | 429.03 | Repo rate of 6.5% + Spread of 3.7% = 10.20% | 12 months | HDFC ultra short term fund – regular growth |
4. Vehicle Loan |
33.73 | 27.73 | 10.51% per annum | 36 months | Used Mercedes-Benz (GLC220D4M) Our Director, Amjad Adam Arbani is a co-borrower in this loan. |
5. Vehicle Loan |
27.35 | 22.49 | 10.51% per annum | 36 months | Used Mercedes-Benz C-Class C220D |
Sr. No. Nature of Facility |
Amount Sanctioned (in lakhs) | Amount Outstanding (ason July 31, 2025) (in lakhs) | Rate of Interest/ Commission | Tenure / Tenor | Security |
| Our Director, Amjad Adam Arbani is a co-borrower in this loan. | |||||
RBL Bank Limited |
|||||
6. Bank Guarantee 1 (Main Limit- convert to 100% FD backed BG) |
368.00 | 371.25 | 0.9% plus applicable taxes per annum | 24 months (including one year claim period) | Lien on Fixed Deposit (100% backed by FD) to the extent of 368 lakhs (along with a right to set-off) |
7. Overdraft against FD (Sub limit of Bank Guarantee 1) |
(1.00) | - | FD+2% | 12 months, repayable on demand | In accordance with the Letter of security, lien and set off dated December 20, 2024 fixed deposits are required to be created from time to time as and when required. |
Punjab National Bank |
|||||
8. Overdraft against Fixed Deposit |
0.95 | -* | 8.25% as per HO circular No. L&A circular 39/2021 dated February 19,2021 | 35 months | The Overdraft facility is 100% backed by fixed deposit receipt bearing number: 028420PU00001088 |
Axis Bank Limited |
|||||
9. Export Credit Facilities- Pre Shipment (EPC/RPC/PCFC) |
2,000 | 831.92** | INR: Repo+3.65% FCY: SOFT +200bps p.a. | 12 months/ usance period of 180 days | Primary Security: • Hypothecation of entire current assets of our Company both present and future on exclusive basis. |
| Export Credit | (2,000) | - | INR: | 12 months/ usance period of 180 days |
|
| Facilities- Post | Repo+3.65% | ||||
Shipment (FBILL/EBRD) (Sub-limit to Export Credit Facilities- Pre Shipment |
FCY: SOFT +200bps p.a. |
• Hypothecation of entire movable assets of our Company both present and future on exclusive basis. Collateral: |
|||
(EPC/RPC/PCFC)) Cash Credit (Sub-limit to Export Credit Facilities- Pre Shipment (EPC/RPC/PCFC)) Letter Credit of (Inland/Import) |
(400) |
165.39 |
INR: Repo+4.10% |
12 months |
Exclusive charge on following: |
• Equitable Mortgage on Office Premises located at 303, 402 & 403, Vishaka Arcade, Veera Desai Road, Andheri West, Mumbai, owned by Fabtech Technologies International Private Limited |
|||||
| 1,500 | 625.70 | 50% of banks standard charges | 12 months/ Usance period of Inland- | ||
Letter Credit of (Inland/Import) (Sub-limit to Export Credit Facilities- Pre Shipment |
(2,000) | - | 50% of banks standard charges | 90days, Import- 180 days 12 months/ Usance period of Inland- 90 days, Import- | • Equitable Mortgage on Commercial office on 7th floor bearing no-715, 716, 717 and 718 situated at building – "Janki Centre" of "Janki centre premises co- operative society limited", shah industrial |
(EPC/RPC/PCFC)) Bank Guarantee (Inland/Foreign) |
250 | - | 50% of Banks standard charges + GST | 180 days 12 months/ 36 months including | estate, off veera desai road, Andheri (W), Mumbai, Maharashtra. |
Sr. No. Nature of Facility |
Amount Sanctioned (in lakhs) | Amount Outstanding (ason July 31, 2025) (in lakhs) | Rate of Interest/ Commission | Tenure / Tenor |
Security |
Bank Guarantee (Inland/Foreign) (Inland/Import) (Sub-limit to Letter Credit of (Inland/Import)) |
(1,500) | - | 50% of banks standard charges | claim period of 12 months 12 months/ 36 months including claim period of 12 months |
(Cross Collateralised between Fabtech Technologies Private Limited and Fabtech Technologies International Private Limited), owned by M/s Fabtech Turnkey Projects LLP; |
Bank Guarantee (Inland/Foreign) (Sub-limit to Export Credit Facilities- Pre Shipment (EPC/RPC/PCFC)) |
(2,000) | 60.44 | 50% of banks standard charges | 12 months/ 36 months including claim period of 12 months |
• Negative lien on the land situated at Khalapur Raigad Raigarh Maharashtra (410202), in the name of our FTIPL - Negative lien - Exclusive charge |
SBLC for Buyers Credit |
525.00 | - | 50% of banks standard charges | 12 months/ usance period of 180 days |
• Fixed Deposit - Lien - INR 6.6 l CR - Exclusive charge |
Bank Guarantee (Inland/Foreign) (Sub-limit of SBLC for Buyers Credit) |
(525.00) | - | 50% of banks standard charges | 12 months/ 36 months including claim period of 12 months |
Personal Guarantee: Aarif Ahsan Khan; Aasif Ahsan Khan Hemant Mohan Anavkar Corporate Guarantee: |
| 10. LER | 300 | - | As per treasury | 12 months | Technologies |
• Fabtech International Private Limited |
|||||
IndusInd Limited |
• Fabtech Turnkey Projects LLP |
||||
11. Export Packing Credit |
1,000.00 | 717.21** | As mutually agreed INR: | 180 days |
Current Assets - both present and future. |
| 9.75 % p.a. at present FCY: SOFR +spread available during disbursement | First pari-passu charge on the entire current assets of our Company both present and future including the retention money or security deposit for performance and fixed assets. |
||||
Cash Credit (Sublimit of Export Packing Credit) |
(200.00) | 193.97 | INR: 9.75% p.a. at present | 180 days |
Lien on fixed deposits in the form of exclusive charge |
Working Capital Demand Loan (Sublimit of Export |
(200.00) | - | INR: 9.75% p.a. at present | 180 days |
(50% of 10.00 crores). Personal Guarantee: |
| Packing Credit) | Aarif Ahsan Khan; | ||||
Letter of Credit - (ILC/ FLC) (Sublimit of Export Packing Credit) |
(200.00) | - | 0.75% p.a. | 12 months. Repayable on demand |
Aasif Ahsan Khan Hemant Mohan Anavkar |
Post-Shipment Credit in Foreign Currency- Export Bill Re-discounting (Sublimit of Export Packing Credit) |
(1,000.00) | - | INR: 9.75% p.a. at present FCY: SOFR +spread available during disbursement | 180 days Repayable on demand |
Sr. No. Nature of Facility |
Amount Sanctioned (in lakhs) | Amount Outstanding (ason July 31, 2025) (in lakhs) | Rate of Interest/ Commission | Tenure / Tenor | Security |
Bank Guarantee - (Sublimit of Export Packing Credit) |
(200.00) | - | 0.75% p.a | Repayable on demand | |
Forward Cover Limit |
200.00 | - | As negotiable on transaction to transaction basis | 12 months | |
| Total Fund Based | 1,200.00 | ||||
Total Secured Loans |
7,258.71 | 3,468.36 |
Our Company |
Loans availed by our Subsidiaries |
|||
Unsecured Loans (on standalone basis) |
||||
FT Institutions Private Limited |
||||
1. Unsecured Loan |
1,000 | 510.45 | 10% | Repayable on - demand |
Fabtech Technologies LLC (on a consolidated basis) |
||||
Our Company |
||||
1. Unsecured Loan |
2,200 | 2,075.33 | 10% | Repayable on - demand |
From Others |
||||
As on July 31, 2025, our Company has not withdrawn any funds from the overdraft facility availed from Punjab National Bank.
**The above outstanding balance has been converted into INR at an exchange rate as on July 31, 2025, as taken from www.oanda.com .
For further and detailed information on our indebtedness, see "Risk Factors - Risk Factor No 48 - Our inability to meet our obligations, including financial and other covenants under our debt financing arrangements could adversely affect our business, financial condition, cash flows and results of operations" on page 80 and "Financial Indebtedness" on page 403 of this Red Herring Prospectus
CONTINGENT LIABILITIES
As of March 31, 2025, the estimated amount of contingent liabilities are as follows:
( in lakhs)
Particulars |
As at March 31, 2025 | As at March 31, 2024 | As at March 31, 2023 |
a) Claims against the Company not acknowledged as debt * (The outflow, if any, shall be paid along with interest) |
85.53 | 85.53 | 85.53 |
b) Corporate guarantee given by the company in respect of working capital limits sanctioned by Axis Bank to: |
|||
i) Fabtech Technologies Cleanrooms Private Limited |
1,000.00 | 1,000.00 | 1,000.00 |
ii) Fabsafe Technologies Private Limited |
600.00 | 600.00 | 600.00 |
c) Performance guarantee given for execution of turnkey project contracts |
1,570.67 | 2,069.55 | 867.55 |
TOTAL |
3,256.20 | 3,755.08 | 2,553.08 |
For further information on our contingent liabilities and commitments, see "Note 39 – Contingent Liabilities" under the chapter "Restated Financial Statements" on page 304.
OFF-BALANCE SHEET ARRANGEMENTS
We do not have any off-balance sheet arrangements that have or which we believe reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenue or expenses, operating results, liquidity, capital expenditure or capital resources.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2025, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.