You should read the following discussion in conjunction with our restated financial statements attached in the chapter titled “Financial Information of the Company” beginning on page 152. You should also read the section titled “Risk Factors” on page 28 and the section titled “Forward Looking Statements ” on page 17 of this Red Herring Prospectus, which discusses a number offactors and contingencies that could affect our financial condition and results of operations. The following discussion relates to us and, unless otherwise stated or the context requires otherwise, is based on our Restatedfinancial Statements. Our financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditor dated October 17, 2025 which is included in this Red Herring Prospectus under “Financial Statements ”. The Restated Financial Information has been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. Our financial year ends on March 31 of each year and all references to a particular financial year are to the twelve-month period ended March 31 of that year.
Business Overview
Incorporated in 2015, we are an engineering company engaged in the manufacturing of ready-to-use components, assemblies, and subassemblies for Indian railways, defence, power generation and allied industries. Our product portfolio includes critical components such as traction motor components and bogie assembly components for the railway sector, sub-assemblies for thermal and hydro turbines used in the power generation sector and components for industrial machinery, equipment and the defence sector. These components are manufactured using unmachined and machined castings made from metals including carbon steel, ductile iron, grey cast iron and medium and low alloy steels. Our clientele primarily comprises companies operating in the heavy engineering, railways and defence sector.
In the railway sector, we supply components for the production of traction motors and bogie assemblies, including control arms for FIAT LHB coaches, stator frames for various motors used by railways for manufacturing of traction motors serving the railway and heavy engineering industries. In the defence sector, we manufacture components such as cradles and recoiling assembly cylinders for government defence production units. In the power generation sector, we manufacture guide vanes, bush housings and fork systems for heavy engineering companies, which are used in hydro and thermal power generation. In components for industrial machinery and equipment, we manufacture High Temperature Resistance Liner and other components.
Our company holds Class ‘A Foundry Status from the Research Designs and Standards Organization (RDSO), Ministry of Railways, confirming compliance with IS: 12117:1996 (Reaffirmed 2022). In addition, we have been approved by the competent authority under Indian Railways for capacity-cum-capability assessment to develop, manufacture and supply various critical components for electric locomotives and traction motors, including Suspension Tubes, Axle Boxes, Gear Cases, Axle Box housing and Control Arms. We are also an approved vendor for supplying critical components for defense applications, including Cradle Assemblies and Steel Castings, as per specific technical requirements.
Our manufacturing operations are carried out at our foundry located in Pithampur, Dhar, Madhya Pradesh, spread over land area of 12,195 square meters and is ISO 9001:2015 certified. We utilize a range of in-house machinery and equipment to support processes such as melting, heat treatment, grinding, molding, sand mixing and finishing. This enables us to maintain a comprehensive production process, ensuring that our products meet the required standards for critical customer applications. In addition, we conduct in-house testing of our products using various equipments to evaluate parameters such as material composition, mechanical properties and defect detection, ensuring compliance with required client specifications.
As part of our strategic expansion, in February 2024, we acquired Sleeploop India Private Limited (SIPL), making it our wholly owned subsidiary. SIPL operates a manufacturing facility located at Pithampur, Dhar, Madhya Pradesh, which consists of two separate divisions · one dedicated to CNC machining and the other to rebounded foam manufacturing. Further, we have incorporated a foreign subsidiary company, namely, Gallard Steel Europe B.V., with the Netherlands Chamber of Commerce on October 21, 2025, having its office located at Kaneelhof 5, 3544 AM, Utrecht, Netherlands, for the purpose of establishing our presence in Europe and facilitating exports of steel castings and machined components to the European market. The said foreign subsidiary is yet to commence its business operations.
At SIPLs CNC machining division, components produced at our foundry undergo precision machining processes, including surface finishing, removal of excess material, post-casting modifications and customization to meet specific customer requirements. Additionally, SIPLs Rebonded Foam division manufactures foam sheets, which are supplied to mattress manufacturers. This process utilizes waste or discarded foam, which is shredded, cleaned, mixed with adhesive, pressed and cooled. Once processed, the foam is cut into specified sizes and delivered to customers.
Our Company is led by our Directors and Senior Management team, namely, Zakiuddin Sujauddin, Hakimuddin Ghantawala and Kaid Johar Kalabhai having an extensive experience in the steel components industry.
Key Performance Indicators
Our key performance indicators for the last three Fiscals are as follows:
Key Financial Performance |
For the period ended September 30, 2025 | FY 2024-25 | FY 2023-24 | FY 2022-23 |
Revenue from operations 1 |
3,156.02 | 5,331.80 | 2,682.44 | 2,059.06 |
EBITDA 2 |
742.46 | 1,247.17 | 506.53 | 189.69 |
EBITDA Margin 3 |
23.53% | 23.39% | 18.88% | 9.21% |
PAT <4> |
429.31 | 606.67 | 319.56 | 113.49 |
PAT Margin <5) |
13.60% | 11.38% | 11.91% | 5.51% |
RoE (%) <6) |
22.33% | 43.16% | 37.34% | 20.56% |
RoCE (%) 7 |
15.52% | 26.59% | 16.42% | 14.23% |
Notes:
<1 Revenue from operation means revenue from sale of products & services and other operating revenues <2) EBITDA is calculated as Profit before tax + Depreciation + Finance cost - Other Income <3 ‘EBITDA Margin is calculated as EBITDA divided by Revenue from Operations <4 pat is calculated as Profit before tax - Tax Expenses
<5 ‘pat Margin is calculated as PATfor the period/year divided by revenue from operations.
<6) Return on Equity is ratio of Profit after Tax and Average Shareholder Equity
<7 Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as Shareholders Fund + Long term borrowing + Short term borrowing+ Deferred Tax Liability.
Explanation for KPI metrics:
KPI |
Explanations |
Revenue from Operations |
Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps to assess the overall financial performance of our Company and volume of our business |
EBITDA |
EBITDA provides information regarding the operational efficiency of the business |
EBITDA Margin (%) |
EBITDA Margin (%) is an indicator of the operational profitability and financial performance of our business. |
PAT |
Profit after tax provides information regarding the overall profitability of the business. |
PAT Margin (%) |
PAT Margin (%) is an indicator of the overall profitability and financial performance of our business. |
Net Worth |
Net worth is used by the management to ascertain the total value created by the entity and provides a snapshot of current financial position of the entity. |
ROE (%) |
RoE provides how efficiently our Company generates profits from shareholders funds. |
ROCE (%) |
RoCE provides how efficiently our Company generates earnings from the capital employed in the business. |
SIGNIFICANT ACCOUNTING POLICIES
A. Basis of preparation of Consolidated Financial Statements:
The Restated Statement of Assets and Liabilities as at September 30, 2025, and Restated Statement of Assets and Liabilities as at March 31, 2025, March 31, 2024 and March 31, 2023, the Restated Statements of Profit and Loss for the six months period ended September 30, 2025, the Restated Statements of Profit and Loss for the year ended March 31, 2025, March 31, 2024 and March 31, 2023, the Restated Cash Flow Statement for the six months period ended September 30, 2025, the Restated Cash Flow Statement for the period ended March 31, 2025, March 31, 2024 and March 31, 2023, the Summary Statement of Material Accounting Policies, the Notes and Annexures as forming part of these Restated Financial Statements (collectively, the “Restated Financial Information”), as approved by the Board of Directors of the company.
These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 13 3 of the Companies Act, 2013 (‘the Act) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act.
The financial statements of the erstwhile Sleeploop India Private Limited for the period up to February 15, 2024 and for the financial year ended March 31, 2024, 2023 and 2022 have been revised by the Company to conform to the format prescribed for companies under the Companies Act, 2013 in accordance with Indian GAAP and adequate disclosures are made as required to be made by the company as per schedule III of the Companies Act, 2013
The accounting policies adopted in the preparation of financial statements have been consistently applied. All assets and liabilities have been classified as current or non-current as per the companys normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of operations and time difference between the provision of services and realization of cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.
B. Use of Estimates
The preparation of financial statements is in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.
C. Basis Of Consolidation
The consolidated financial statements of Gallard Steel Limited (the company), and its subsidiary Sleeploop India Private Limited are prepared on the following basis:
a) The financial statements of the Company and its subsidiary company are combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating intra-group balances and intra-group transactions resulting in unrealized profits or losses in accordance with Accounting Standard (AS) 21 - "Consolidated Financial Statements" as specified in section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014.
b) The consolidated financial statements have been prepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented to the extent possible, in the same manner as the companys standalone financial statements.
c) For the purpose of consolidation, the audited financial statements of Sleeploop India Private Limited have been considered.
d) The difference between the costs of investment in the subsidiaries, over the net assets at the time of acquisition of subsidiary is recognized in the financial statements as Goodwill or Capital Reserve as the case may be.
e) Sleeploop India Private Limited became Wholly Owned subsidiary of Gallard Steel Limited, effective from 16th February 2024. The details are as follows:
Particulars |
% of holding of shares in subsidiary |
||
| As at 30th September 2025 | As at 31st March 2025 | As at 31st March 2024 | |
1. Sleeploop India Private Limited |
100.00% | 100.00% | 100.00% |
D. Accounting Convention
The Company follows the mercantile system of accounting, recognizing income and expenditure on accrual basis. The accounts are prepared on historical cost basis and as a going concern. Accounting policies not referred to specifically otherwise, are consistent with the generally accepted accounting principles.
The following significant accounting policies are adopted in the preparation and presentation of these financial statements:
1. Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
Sales of goods are recognized on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers.
Income from Services is recognized on an accrual basis when it is earned and the right to receive payment is reasonably assured.
Interest Income is Recognized on a time proportion basis taking into account the amount outstanding and the rate applicable i.e. on the basis of matching concept.
2. Property, Plant and Equipment and Intangible Assets i. Property, Plant & Equipments:
a) Property, Plant and Equipment Intangible Assets are stated as per Cost Model i.e., at cost less accumulated depreciation and impairment, if any; Costs directly attributable to acquisition are capitalized until the Property, Plant and Equipment and Intangible Assets are ready for use, as intended by the management;
b) Subsequent expenditures relating to Property, Plant and Equipment and Intangible Assets are capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs & maintenance costs are recognized in the Statement of profit & Loss when incurred;
c) The cost and related accumulated depreciated are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit or Loss. Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost to sell;
d) Depreciation on fixed assets will be calculated using the Written Down Value Method (WDV) method, which involves applying depreciation rates prescribed under Schedule II to the Companies Act 2013. to the carrying amount of the asset. The carrying amount is reduced each year by the amount of depreciation charged.
e) Depreciation methods, useful lives, and residual values are reviewed periodically, including at each financial year end;
3. Impairment
The Management periodically assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the assets net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.
4. Inventories
Raw material, Work in Progress and finished goods ::
Raw Materials -Lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on First in First out (FIFO) basis.
Finished goods and Work in progress are valued at the lower of cost and net realisable value. Cost is determined on First in First out (FIFO) basis.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale.
5. Foreign Exchange Transactions
All transactions in foreign currency are recorded at the rates of exchange prevailing at the date of transaction. Any gain/ loss on account of the fluctuation in the rate of exchange is recognized in the statement of Profit and Loss.
Monetary items in the form of Loans, Current Assets and Current Liabilities in foreign currencies outstanding at the close of the year are converted in Indian currency at the appropriate rates of exchange prevailing on the date of Balance Sheet. Resultant gain or loss on account of the fluctuation in the rate of exchange is recognized in the statement of Profit and Loss.
6. Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non- cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.
7. Borrowing Costs
Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are capitalized as part of the cost of that asset till such time the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. Costs incurred in raising funds are amortized equally over the period for which the funds are acquired. All other borrowing costs are charged to profit and loss account.
8. Income Tax
The accounting treatment for the Income Tax in respect of the Companys income is based on the Accounting Standard on ‘Accounting for Taxes on Income (AS-22). The provision made for Income Tax in Accounts comprises both, the current tax and deferred tax. Provision for Current Tax is made on the assessable Income Tax rate applicable to the relevant assessment year after considering various deductions available under the Income Tax Act, 1961.
Deferred tax is recognized for all timing differences; being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. The carrying amount of deferred tax asset/liability is reviewed at each Balance Sheet date and consequential adjustments are carried out.
9. Earnings Per Share
Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.
10. Provisions and Contingent Liabilities
A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the likely future outflow of economic benefits required to settle the obligation at the reporting date.
Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
11. Cash and Cash Equivalents
Cash and cash equivalents comprise cash and cash on deposit with banks. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.
12. Investments
Investment which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as non-current investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.
13. Government Grants and Subsidies
Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants / subsidy will be received. Government grants whose primary condition is that the Company should
purchase, construct or otherwise acquire capital assets are presented by deducting them from the carrying value of the assets. The grant is recognised as income over the life of a depreciable asset by way of a reduced depreciation charge. When the grant or subsidy relates to an expense item, it is recognized as income over the periods necessary to match them on a systematic basis to the costs, which it is intended to compensate.
14. Contingencies and events occurring after the Balance Sheet date
Events that occur between balance sheet date and date on which these are approved, might suggest the requirement for an adjustment(s) to the assets and the liabilities as at balance sheet date or might need disclosure. Adjustments are required to assets and liabilities for events which occur after balance sheet date which offer added information substantially affecting the determination of the amounts which relates to the conditions that existed at balance sheet date.
15. Related Party Transactions
Related parties as defined under Accounting Standard - 18 ‘Related Party Disclosures have been identified based on representations made by management and information available with the Company. All transactions with related parties are in the ordinary course of business and on arms length basis.
16. Leases
The company has taken Office & factory on lease and classified as an Operating lease and lease rentals are recognized in profit of loss account as per lease terms.
17. Segment Reporting
As per As -17 Segment Reporting is not applicable to the company for the reporting period.
18. Employee Benefits Defined-contribution plans:
All short-term employee benefits are accounted on undiscounted basis during the accounting period based on services rendered by employees.
The Companys contribution to Provident Fund is determined based on a fixed percentage of the eligible employees salary and charged to the Statement of Profit and Loss on accrual basis.
The Company has made provision for payment of Gratuity to its employees. This Provision is made as per the method prescribed under the Payment of Gratuity Act. The cost of providing gratuity under this plan is determined on the basis of actuarial valuation at year/period end. The Company has adopted Accounting Standard 15 (revised 2005) on Employee Benefits during the restated financials period. The disclosure as envisaged under the Accounting Standard is provided hereunder:
(Rs In Lakhs)
Details of Gratuity Expenses |
Sep-25 | 2024-25 | 2023-24 | 2022-23 |
Profit and loss account for the period |
||||
Current service cost |
0.40 | 0.80 | 0.50 | 0.46 |
Interest on obligation |
0.20 | 0.23 | 0.18 | 0.14 |
Expected return on plan assets |
0.00 | - | - | - |
Net actuarial loss/(gain) |
-0.18 | 1.53 | 0.07 | -0.02 |
Recognized Past Service Cost-Vested |
- | - | - | - |
Benefits paid |
- | - | - | - |
Loss (gain) on curtailments |
- | - | - | - |
Total included in Employee Benefit Expense |
0.42 | 2.56 | 0.75 | 0.57 |
prior year charge |
- | - | - | - |
Total Charge to P&L |
0.42 | 2.56 | 0.75 | 0.57 |
Reconciliation of defined benefit obligation |
||||
Opening Defined Benefit Obligation |
5.74 | 3.18 | 2.43 | 1.87 |
Transfer in/(out) obligation |
- | - | - | - |
Current service cost |
0.40 | 0.80 | 0.50 | 0.46 |
Interest cost |
0.20 | 0.23 | 0.18 | 0.14 |
Actuarial loss (gain) |
-0.18 | 1.53 | 0.07 | -0.02 |
Past service cost |
- | - | - | - |
Benefits paid |
- | - | - | - |
Prior year charge |
- | - | - | - |
Closing Defined Benefit Obligation |
6.16 | 5.74 | 3.18 | 2.43 |
Table of experience adjustments |
||||
Defined Benefit Obligation |
- | - | - | - |
Plan Assets |
- | - | - | - |
Surplus/(Deficit) |
- | - | - | - |
Reconciliation of plan assets |
||||
Opening value of plan assets |
- | - | - | - |
Transfer in/(out) plan assets |
- | - | - | - |
Expenses deducted from the fund |
- | - | - | - |
Expected return |
- | - | - | - |
Actuarial gain/(loss) |
- | - | - | - |
Contributions by employer |
- | - | - | - |
Benefits paid |
- | - | - | - |
Closing value of plan assets |
- | - | - | - |
Details of Gratuity Expenses |
||||
Reconciliation of net defined benefit liability |
||||
Net opening provision in books of accounts |
5.74 | 3.18 | 2.43 | 1.87 |
-Transfer in/(out) obligation |
0.42 | 2.56 | 0.75 | 0.57 |
Transfer (in)/out plan assets |
- | - | - | - |
Employee Benefit Expense |
- | - | - | - |
Benefits paid by the Company |
- | - | - | - |
Contributions to plan assets |
- | - | - | - |
Closing provision in books of accounts |
6.16 | 5.74 | 3.18 | 2.43 |
Bifurcation of liability |
||||
Current Liability |
0.73 | 0.60 | 0.70 | 0.47 |
Non-Current Liability |
5.43 | 5.14 | 2.48 | 1.96 |
Net Liability |
6.16 | 5.74 | 3.18 | 2.43 |
Principle actuarial assumptions |
||||
Discount Rate |
7.00% | 7.00% | 7.25% | 7.25% |
Expected Return on Plan Assets |
- | - | - | - |
Salary Escalation Rate |
5.00% | 5.00% | 5.00% | 5.00% |
Withdrawal Rates (p.a.) |
10.00% | 10.00% | 10.00% | 10.00% |
19. Disclosure with respect to Investment in Subsidiary
Particulars |
Sep-25 | 2024-25 | 2023-24 | 2022-23 |
1. Sleep loop Private Limited |
||||
a. Net Assets, i.e., total assets minus total liabilities |
||||
(i) As % of consolidated Net assets |
21.35% | 19.52% | 2.16% | - |
(ii) Amount |
456.35 | 333.44 | 23.80 | - |
b. Share in profit or loss |
||||
(i) As % of consolidated profit or Loss |
28.63% | 22.11% | 7.48% | - |
(ii) Amount |
122.90 | 134.14 | 23.80 | - |
Our Result of Operations
The following discussion on results of operations should be read in conjunction with the Restated Financial Statements for the period ended 30th September 2025 and Fiscals 2025, 2024 and 2023.
%* = Percentage is calculated as a result of Total Income.
Key Components of Income and Expenses
We report on our income and expenditure in the following manner:
Total Income
Our total income comprises of revenue from operations and other incomes.
Revenue from operations:
Revenue from operations mainly consists of revenue from sale of Goods which includes Traction Motor Components & Bogie Assembly Components, Industrial Machinery & Equipment Components, Hydro Turbine & Power Generation Components , Defense Components, Rebounded Foam and Others.
The following table sets forth the bifurcation of revenue (product-wise) for the fiscal years 2025, 2024 and 2023.
Particulars |
Consolidated |
Consolidated |
Consolidated |
Standalone |
||||
For the period ended September25 |
FY 24-25 |
FY 23-24 |
FY 22-23 |
|||||
| Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | |
Traction Motor Components & Bogie Assembly Components |
2,489.50 | 78.88% | 4,107.69 | 77.04% | 2,241.12 | 83.55% | 1,569.04 | 76.20% |
Industrial Machinery & Equipment Components |
99.71 | 3.16% | 88.79 | 1.67% | 71.37 | 2.66% | 148.37 | 7.21% |
Hydro Turbine & Power Generation Components |
0.96 | 0.03% | 7.60 | 0.14% | 136.51 | 5.09% | - | 0.00% |
Defense Components |
0.03 | 0.00% | 2.07 | 0.04% | 10.90 | 0.41% | - | 0.00% |
Rebounded Foam |
506.65 | 16.05% | 1,049.26 | 19.68% | 73.27 | 2.73% | - | 0.00% |
Others* |
59.18 | 1.88% | 76.4 | 1.43% | 149.29 | 5.57% | 341.65 | 16.59% |
Total |
3,156.02 | 100.00% | 5,331.80 | 100.00% | 2,682.44 | 100.00% | 2,059.06 | 100.00% |
*Others include components used in infrastructure and bridge projects such as Pot Piston, Machining charges, Freight of sale, job work and pattern cost.
Other Income:
Other income primarily comprises of Security deposit Interest on electricity, Interest on Fixed Deposit, Discount Received,
Government Grants, Bad debts recovered and Exchange rate difference.
Total Expenses:
Total expenses consist of operating cost like Cost of Material Consumed, Change in Inventories ,Employee benefit expenses, Finance costs, Depreciation and Amortization Expenses and Other Expenses.
Cost of material consumed:
Cost of Material consumed expenses primarily comprise of purchase of Raw Material & Consumables, as adjusted with opening and closing stock.
Change in inventories of finished goods:
Changes in inventories of finished goods and WIP between opening and closing dates of a reporting period.
Employee benefits expense:
Employee benefit expense primarily comprises of Salaries & Bonus, Wages, Director Remuneration, Contribution to PF, ESIC & Other Funds, Staff and Welfare expenses, Gratuity.
Finance Costs:
Our finance cost includes Interest on cash credit, Term loans, Plant and Machinery loans, Business Purpose Loans, Vehicle loans, and Unsecured loans from banks, directors, and other related parties, along with processing fees and bank charges.
Depreciation and Amortization Expenses:
Depreciation includes depreciation on tangible assts such as Building, plant & machinery, office equipment, furniture and fixtures, computer, Vehicles, Electrical equipment, Testing equipment and intangible assets such as software.
Other Expense:
Other Expenses includes manufacturing expenses like Factory Wages, Electricity Expense , Freight & Transportation Expenses, Machining Charges, Testing Charges, Crane service expense, Calibration Charges, Repair & Maintenance, cutting charges, lease and rent expenses and Other manufacturing expenses. In addition to other expenses like Factory expense, Factory Security Expenses, Factory License Expenses, Software Maintenance & Upgradation Expenses, Legal & Consultancy Charges, Commission Expenses, Insurance charges, Conveyance & Travelling Expenses, Water Charges, etc.
FINANCIAL PERFORMANCE HIGHLIGHTS FOR THE PERIOD ENDED 30th SEPTEMBER 2025:
Total Income:
Total income for the period ended September 30th, 2025 stood at Rs. 3,213.51 lakhs. The total income consists of revenue from operations and other income.
Revenue from Operations
During the period ended September 30th, 2025 the net revenue from operation of our Company was Rs. 3,156.02 Lakhs primarily driven by the sale of Traction Motor Components & Bogie Assembly Components amounting to Rs. 2,489.50 lakhs, sale of Industrial Machinery & Equipment Components and rebounding foam amounting to Rs. 99.71 and Rs.506.65 Lakhs respectively, along with revenue from Hydro Turbine & Power Generation Components, Defense Components and others combined forming a revenue of Rs.60.16 Lakhs.
Other Income:
During the period ended September 30th, 2025 the other income of our Company stood at Rs. 57.49 Lakhs. Other income primarily comprises Government Grants, Security deposit interest on electricity, Discount Received.
Total Expenses:
Total expenses consist of operating cost like Cost of Material Consumed, Change in Inventories, Employee benefit expenses, Finance costs, Depreciation and Amortization Expenses and Other Expenses. During the period ended September 30th, 2025 the total expenses of our Company stood at Rs 2,656.06 Lakhs.
Cost of Material Consumed:
During the period ended September 30th, 2025 the Cost of Material Consumed of our Company stood at Rs. 1,577.19 Lakhs.
Change in inventories of Finished Goods & WIP:
During the period ended September 30th, 2025 the Change in inventories of Finished Goods stood at Rs. 72.42 Lakhs.
Employee benefits expense:
During the period ended September 30th, 2025 the employee benefit expenses of our Company stood at Rs. 194.14 Lakhs. The components of the employee benefit expenses are Salaries & Bonus, Remuneration to Directors, Contribution to PF, ESIC & Other Funds, Staff and Welfare expenses and Gratuity.
Finance Costs:
During the period ended September 30th, 2025 the finance costs of our Company stood at Rs. 80.19 Lakhs. Our finance cost includes Interest on borrowings and Processing fees & Bank Charges.
Depreciation and Amortization Expenses:
During the period ended September 30th, 2025 the Depreciation on Property Plant & Equipment and Amortization of Intangible Assets charges of our Company stood at Rs. 162.30 Lakhs.
Other Expenses:
Other expenses the period ended September 30th, 2025, were Rs. 569.80 Lakhs, including mainly Factory Wages , Electricity Expenses , Freight & Transportation Expenses , Machining Charges, Legal & Consultancy, Charges Job work charges, Commission Expenses, Repair & Maintenance, Business Promotion expenses, Packing & Forwarding Expenses, Conveyance & Travelling Expenses and Other Operational Outflows.
Restated Profit before tax:
The Company reported Restated profit before tax for period ended September 30th, 2025 of Rs. 557.45 Lakhs.
Restated profit after tax:
The Company reported Restated profit after tax for period ended September 30th, 2025 of Rs. 429.31 Lakhs.
FINANCIAL YEAR ENDED 31st MARCH 2025 COMPARED TO FINANCIAL YEAR ENDED 31st MARCH 2024 Total Income:
The total income for FY 2025 stood at Rs. 5,352.40 Lakhs, compared to Rs. 2,786.09 Lakhs in FY 2024, reflecting a growth of 92.11 %. This increase was primarily driven by higher Revenue from Operations and Other Income.
Revenue from Operations:
In FY 2025, the revenue from operations was Rs. 5,331.80 Lakhs, showing a significant increase from Rs. 2,682.44 Lakhs in FY 2024, reflecting an increase of 98.77%. This growth was primarily attributed to increased sales of traction motor components and bogie assembly components for the railway sector, which increased from ? 2,241.12 lakhs in FY 2024 to ? 4,107.69 lakhs in FY 2025, reflecting a growth of approximately 83.29%. The revenue from manufacturing of Industrial Machinery & Equipment Components, Hydro Turbine & Power Generation Components, Defense Components, Rebounded Foam and others increased from ?441.34 lakhs in FY 2024 to ?1,224.12 lakhs in FY 2025, reflecting a growth of 177.36%.
Other Income:
Other income for FY 2025 stood at Rs. 20.60 Lakhs, compared to Rs. 103.65 Lakhs in FY 2024, marking an decrease of 80.13%. The decline was primarily due to decrease in Government Grants (Rs. 1.86 Lakhs in FY 2025 vs. Rs. 93.84 in FY 2024) and increase in Interest on Fixed Deposit (Rs. 15.21 Lakhs in FY 2025 vs. Rs. 7.86 in FY 2024).
Total Expenses:
Total expenses for FY 2025 were Rs. 4,510.30 Lakhs, compared to Rs. 2,419.10 Lakhs in FY 2024, reflecting an increase of 86.45 %. This increase was due to increase in business operations of the Company resulting in higher purchase of stock in trade, employee benefits, depreciation and other operational expenses.
Cost of Material Consumed:
The cost of material consumed increased to Rs. 2,986.11 Lakhs in FY 2025 from Rs. 1,404 Lakhs in FY 2024, representing a increase of 112.54 % when compared to the sales of goods and services, the cost increased from 52.38% in FY 2024 to 56.01% in FY 2025. Such increase was due to higher material cost on account of increase in business operations of the Company.
Change in inventories:
Our Company has incurred Rs. (76.09) Lakhs as Change in inventories of finished goods & work in progress during the financial year 2024-25 as compared to Rs. (53.26) Lakhs in the financial year 2023 -24.
Employee Benefits Expense:
Our Company has incurred Rs. 296.26 lakhs as Employee Benefits Expense during the FY 2024-25 as compared to Rs. 89.76 lakhs in FY 2023-24. This increase was primarily due to a rise in Salaries and Bonus from ?65.79 lakhs to ?230.10 lakhs, and Director Remuneration from ?13.50 lakhs to ?45.00 lakhs. Contributions to PF, ESIC, and other funds also increased from ?3.31 lakhs to ?5.33 lakhs. Additionally, Staff Welfare Expenses rose from ?6.41 lakhs to ?13.28 lakhs, and Gratuity expenses increased from ?0.75 lakhs to ?2.56 lakhs.
Finance Cost:
Our Company has incurred Rs. 163.57 Lakhs as finance cost during the financial year 2024-25 as compared to Rs. 110.71 Lakhs in the financial year 2023-24 reflecting a increase of Rs.52.86 lakhs. This incline was primarily due to increase in interest on borrowings, from Rs.103.03 lakhs in FY 2023-24 to Rs.153.85 lakhs in FY 2024-25.
Depreciation and Amortization Expenses:
Depreciation for the financial year 2024-25 stood at Rs. 261.15 Lakhs as against Rs. 130.71 Lakhs during the financial year 2023-24. The increase in depreciation was around 99.80%, which was primarily due to purchase of Plant & Machinery, Building, Furniture & Fixture, Electric Equipment, Testing equipment, Computers, Vehicles and others.
Other Expenses:
Our Company incurred Rs. 878.35 Lakhs in other expenses during FY 2024-25, compared to Rs. 734.42 Lakhs in FY 2023-24, an increase of 19.60%. This increase was driven primarily by rise in costs of Electricity Expenses , Factory Expenses , Freight & Transportation Expenses, Factory Wages , Packing & Forwarding Expenses Repair & Maintenance, Legal & Consultancy Charges, Commission expense, Crane service expense and other manufacturing expense. At the same time it was a decline in Machining Charges, Late Deduction, Other Import charges, Professional Expenses and Site development expenses.
Restated profit before tax:
Net profit before tax for the financial year 2024-25 increased to Rs. 842.10 Lakhs as compared to Rs. 366.99 Lakhs in the financial year 2023-24, marking an increase of 129.46%. This significant growth was primarily driven by the factors mentioned above.
Restated profit for the year:
As a result of the foregoing factors, our profit after tax increased by 89.84%, rising from Rs. 319.56 Lakhs in the financial year 2023-24 to Rs. 606.67 Lakhs in the financial year 2024-25.
FINANCIAL YEAR ENDED 31st MARCH 2024 COMPARED TO FINANCIAL YEAR ENDED 31st MARCH 2023 Total Income:
The total income for FY 2024 stood at Rs. 2,786.09 Lakhs, compared to Rs. 2,164.78 Lakhs in FY 2023, reflecting a growth of 28.70%. This increase was primarily driven by higher revenue from operations.
Revenue from Operations:
In FY 2024, the revenue from operations was Rs. 2,682.44 Lakhs, showing a significant increase from Rs. 2,059.06 Lakhs in FY 2023, reflecting an increase of 30.28%. This growth was primarily attributed to increased sales of traction motor components and bogie assembly components for the railway sector, which increased from ?1,569.04 lakhs in FY 2023 to ?2,241.12 lakhs in FY 2024, reflecting a growth of approximately 42.81%. Additionally, revenue from Hydro Turbine & Power Generation Components increased from nil in FY 2023 to ?136.51 lakhs in FY 2024, revenue from Defense Components rose from nil in FY 2023 to ?10.90 lakhs in FY 2024 and revenue from Rebonded Foam, contributed by our wholly-owned subsidiary Sleeploop India Private Limited, amounted to ?73.27 lakhs in FY 2024 as compared to nil in FY 2023, further contributing to the overall growth in revenue from operations.
Other Income:
Other income for FY 2024 stood at Rs. 103.65 Lakhs, compared to Rs. 105.72 Lakhs in FY 2023, marking a decrease of 1.96%. The decline was primarily due to lower Government Grants (Rs. 93.84 Lakhs in FY 2024 vs. Rs. 103.71 Lakhs in FY 2023). Interest on Fixed deposits increased to Rs. 7.86 Lakhs from Rs. 0.93 Lakhs in FY 2023.
Total Expenses:
Total expenses for FY 2024 were Rs. 2,419.10 Lakhs, compared to Rs. 2,012.22 Lakhs in FY 2023, reflecting a rise of 20.22%. This increase was due to increase in business operations of the Company resulting into higher material costs, employee benefits, depreciation and other operational expenses.
Cost of Material Consumed:
The cost of material consumed increased to Rs. 1,404.99 Lakhs in FY 2024 from Rs. 1,384.26 Lakhs in FY 2023, representing an increase of 1.50%. Such increase was due to higher material cost on account of increase in business operations of the Company.
Change in inventories:
Our Company has incurred Rs. (53.26) Lakhs as Change in inventories of Work in progress during the financial year 2023 24 as compared to Rs. 14.06 Lakhs in the financial year 2022-23.
Employee benefits expense:
Our Company has incurred Rs. 89.76 Lakhs as Employee benefits expense during the financial year 2023-24 as compared to Rs. 36.72 Lakhs in the financial year 2022-23. The increase was due to increase in (i)Employees Salary and Bonus Expenses from Rs. 29.90 lakhs to Rs. 65.79 lakhs in the financial year 2023-24 and (ii)Remuneration to Directors to Rs. 13.50 Lakhs, (nil in FY 2023).
Finance Cost:
Our Company has incurred Rs. 110.71 Lakhs as finance cost during the financial year 2023-24 as compared to Rs. 72.64 Lakhs in the financial year 2022-23. The increase was due to increase in Interest on borrowings from Rs.67.95 Lakhs to Rs. 103.03 Lakhs and increase in Processing fees and Bank charges from Rs. 4.69 Lakhs to Rs.7.68 Lakhs during the FY 2023 -24.
Depreciation and Amortization Expenses:
Depreciation for the financial year 2023-24 stood at Rs. 132.48 Lakhs as against Rs. 70.21 Lakhs during the financial year 2022- 23. The increase in depreciation was around 88.69 % which was due to purchase of building, Plant & machinery, furniture, vehicle and other office equipment
Other Expenses:
Our Company incurred Rs. 734.42 Lakhs in other expenses during FY 2023-24, compared to Rs. 434.32 Lakhs in FY 2022 23, an increase of 69.10%. This rise was driven by higher costs in Manufacturing, Sales Promotion, Commission, Business Promotion, Audit Fees, Factory Expenses, Professional Expenses and Transaction Charges.
Restated profit before tax:
Net profit before tax for the financial year 2023-24 increased to Rs. 366.99 Lakhs as compared to Rs. 152.56 Lakhs in the financial year 2022-23, marking an increase of 140.56%. This significant growth was primarily driven by the factors mentioned above. The revenue from operations of the company increased by approximately 28.70%, mainly due to higher sales of Goods.
Restated profit for the year:
As a result of the foregoing factors, our profit after tax increased by 180.45%, rising from Rs. 113.49 Lakhs in the financial year 202223 to Rs. 318.29 Lakhs in the financial year 2023-24
Cash Flows and Cash and Cash Equivalents:
Particulars |
For the period ended Sept 30, 2025 |
For the year ended March 31, |
||
| 2025 | 2024 | 2023 | ||
Net cash (used)/generated from operating activities |
296.79 | 418.71 | 152.21 | -202.49 |
Net cash (used)/generated from investing activities |
-93.74 | -579.01 | -1,008.39 | 58.86 |
Net cash (used)/ generated from financing activities |
-204.91 | 115.15 | 896.44 | 155.47 |
Net increase / (decrease) in cash and cash equivalents at the end of the year |
-1.86 | -45.15 | 40.26 | 11.84 |
Cash and Cash equivalents at the beginning of the year |
24.51 | 69.66 | 29.40 | 17.56 |
Cash and Cash equivalents at the end of the year |
22.65 | 24.51 | 69.66 | 29.40 |
Operating Activity:
For the Period ended September 30th, 2025
Net cash generated from operating activities was Rs.269.79 lakhs for period ended 30th September 2025. While our net profit before tax was Rs.557.45 lakhs, we had an operating profit before working capital changes of Rs.754.42 lakhs for period ended 30th September 2025 which was primarily due to depreciation of Rs.162.30 lakhs, finance cost of Rs.80.19 lakhs, provision for gratuity of Rs.0.42 lakhs, provision for NCLT penalty of Rs.10.00 lakhs and offset by Subsidy received against Purchase of Plant & Machinery (Rs.55.94). Our changes in working capital for period ended 30th September 2025 primarily consisted of a decrease in trade receivables by Rs.89.85 lakhs, increase in inventories by (Rs. 3.22 lakhs), decrease in other current liabilities and non-current liabilities by Rs. 34.73 lakhs, increase in trade payables by (Rs.312.09) lakhs, increase in short term loans & advances by (Rs.219.80 lakhs). Our income taxes paid was Rs.9.30 lakhs for period ended 30th September 2025.
FY 2024-25
Net cash generated from operating activities was Rs.418.71 lakhs for the FY 2024-25. While our net profit before tax was Rs.840.87 Lakhs, we had an operating profit before working capital changes of Rs.1,252.03 Lakhs for the FY 2024-25 which was primarily due to depreciation of Rs.262.10 Lakhs, finance cost of Rs.163.57 Lakhs, provision for gratuity of Rs.2.56 Lakhs, and offset by interest income for (Rs.15.21) and Subsidy received against Purchase of Plant & Machinery for (Rs.1.86) lakhs. Our changes in working capital for the FY 2024-25 primarily consisted of a increase in trade receivables by (Rs.570.23) lakhs, increase in inventories by (Rs. 101.29) lakhs, increase in other non-current asset by (Rs 243.16 lakhs), increase in other current liabilities by (Rs.201.49 lakhs), decrease in trade payables by Rs.89.19 lakhs, decrease in short term loans & advances by Rs.161.75 lakhs and increase in short term provisions by (Rs.35.96) lakhs. Our income taxes paid was Rs.57.75 lakhs for the financial year 2024-25.
FY 23-24
Net cash generated from operating activities was Rs.152.21 lakhs for the FY 2023-24. While our net profit before tax was Rs.366.99 lakhs, we had an operating profit before working capital changes of Rs.501.54 lakhs for the FY 2023-24 which was primarily due to depreciation of Rs.132.48 lakhs, finance cost of Rs.103.03 Lakhs, provision for gratuity of Rs.0.75 Lakhs and offset by interest income for (Rs.7.86) lakhs and Subsidy received against Purchase of Plant & Machinery (Rs.93.84). Our changes in working capital for the FY 2023-24 primarily consisted of a increase in trade receivables by (Rs.456.57) Lakhs, increase in inventories by (Rs.201.84) lakhs, decrease in other non-current liabilities by Rs.201.49 lakhs, increase in trade payables by Rs.279.45 lakhs and increase in short term loans & advances by (Rs.281.74) lakhs. Our income taxes paid was Rs. 12.22 lakhs for the financial year 2023-24.
FY 22-23
Net cash generated from operating activities was (Rs.202.56) lakhs for FY 2022-23. While our net profit before tax was Rs.152.56 lakhs, we had an operating profit before working capital changes of Rs.187.41 Lakhs for the FY 2022-23 which was primarily due to depreciation of Rs.70.21 lakhs, finance cost of Rs.67.95 Lakhs, provision for gratuity of Rs.0.57 lakhs and offset by interest income for (Rs.0.17) lakhs and Subsidy received against Purchase of Plant & Machinery (Rs.103.71), our changes in working capital for the FY 2022-23 primarily consisted of a increase in trade receivables by (Rs.254.05) lakhs, increase in inventories by (Rs.54.98) lakhs, increase in other current liabilities by (Rs.2.53) lakhs, decrease in trade payables by Rs.82.41 lakhs, increase in short term loans & advances by (Rs.22.56) lakhs. Our income taxes refunded was Rs.0.07 lakhs for the financial year 2022-23.
Investing Activity:
Period ended September 30th, 2025
Net cash outflow in investing activities was (Rs.93.74) lakhs for the period ended 30th September , primarily comprising payment for purchase of fixed assets of (Rs.242.03) lakhs, income from Subsidy Received for Capital Expenditures from Govt of Rs. 148.29 Lakhs.
FY 2024-25
Net cash outflow in investing activities was (Rs.579.01) Lakhs for the FY 2024-25, primarily comprising payment for purchase of fixed assets of (Rs.696.53) lakhs, income from Subsidy Received for Capital Expenditures from Govt of Rs. 5.97 Lakhs, Fixed Deposits (Maturity Within 12 Months) Rs.96.33 and Interest on Fixed Deposit received of Rs.15.21.
FY 2023-24
Net cash outflow in investing activities was (Rs.1008.39) lakhs for the FY 2023-24, primarily comprising payment for purchase of fixed assets of (Rs.1,036.89) lakhs and Fixed Deposits (Maturity Within 12 Months) of (Rs.96.33 Lakhs), income from Subsidy Received for Capital Expenditures from Govt of Rs.116.97 Lakhs, Interest on Fixed Deposit received for Rs.7.86 lakhs.
FY 2022-23
Net cash outflow in investing activities was Rs.58.86 lakhs for the FY 2022-23, primarily comprising payment for purchase of fixed assets of (Rs.82.52) lakhs, increase in Subsidy Received for Capital Expenditures from Govt by Rs.141.21 lakhs, Interest on Fixed Deposit on fixed deposit received for Rs.0.17 lakhs.
Financing Activity
Period ended September 30th, 2025
Net cash flow used in financing activities was (Rs.204.91) lakhs for the period ended September 30th 2025, primarily comprising increase of long-term borrowings Rs.584.96, short-term borrowings Rs.3,741.36 and repayment of long-term borrowings of (Rs.669.97) lakhs, short-term borrowings (Rs.3781.07) and interest expense of (Rs.80.19) Lakhs.
FY 2024-25
Net cash flow used in financing activities was Rs.115.15 lakhs for the FY 2024-25, primarily comprising increase of long-term borrowings Rs.1,333.20, short-term borrowings Rs.6,757.82 and repayment of long-term borrowings of (Rs.1,201.80) lakhs, short-term borrowings (Rs.6.610.49) and interest expense of (Rs. 163.57) Lakhs.
FY 2023-24
Net cash flow used in financing activities was Rs.896.44 lakhs for the FY 2023-24, primarily comprising proceeds from Issuance of Equity Share of Rs.174.50, increase of long-term borrowings Rs.994.62, short-term borrowings Rs.3,725.68 and repayment of longterm borrowings of (Rs.350.54) lakhs, short-term borrowings (Rs.3,544.80) and interest expense of (Rs.103.03) Lakhs.
FY 2022-23
Net cash flow used in financing activities was Rs.155.47 lakhs for the FY 2023-24, primarily comprising of proceeds of long-term borrowings Rs.1,209.93, short-term borrowings Rs.3,245.18 and repayment of long-term borrowings of (Rs.1231.73) lakhs, short-term borrowings (Rs.2,999.95) and interest expense of (Rs.67.95) Lakhs.
Details of change in the Revenue, EBITDA and PAT year on year are as below:
(Rs. in lakhs)
Particulars |
FY 2024-25 | FY 2023-24 | FY 2022-23 |
Revenue from Operation |
5,331.80 | 2,682.44 | 2,059.06 |
% Rise in Revenue from operation year on year |
98.77% | 30.28% | 46.08% |
EBITDA |
1,247.17 | 506.53 | 189.69 |
EBITDA margin (%) |
23.39% | 18.88% | 9.21% |
% rise in EBITDA year on year |
146.22% | 167.03% | 53.76% |
PAT |
606.67 | 319.56 | 113.49 |
% PAT margin to revenue |
11.38% | 11.91% | 5.51% |
Rationale for increase/ decrease in Revenue, EBITDA and PAT from F.Y 2022-23 to F.Y 2023-24 to F.Y 2024- 25:
> The reasons for the increase/decrease in revenue have been discussed in detail in the section ‘Comparative Financial Performance for each of the respective years
> EBITDA increased to 23.39 % from Rs.506.53 lakhs in FY 2023-24 to Rs.1247.17 lakhs in FY 2024-25, primarily growth in revenue from operation and reduction in Cost of Goods Sold and finance cost.
EBITDA increased to 18.88 % from Rs.189.69 lakhs in FY 2022-23 to Rs.506.53 lakhs in FY 2023-24, primarily growth in revenue from operation and reduction in Cost of Goods Sold.
> PAT margin slightly decreased to 11.38% in FY 2024-25, compared to 11.91% in FY 2023-24; however, it shows a significant improvement from 5.51% in FY 2022-23.
Year-on-Year Analysis of Cost of Material Consumed in relation to Revenue from Operations:
Particulars |
For the period ended Sept 30th 2025 | FY 2024-25 | FY 2023-24 | FY 2022-23 |
Cost of Material consumed (a) |
1,577.19 | 2,986.11 | 1,404.99 | 1,384.26 |
Change in Inventories (b) |
72.42 | -76.09 | -53.26 | 14.06 |
Total Cost (a+ b) |
1,649.61 | 2,910.02 | 1,351.73 | 1,398.33 |
Revenue from Operations |
3,156.02 | 5,331.80 | 2,682.44 | 2,059.06 |
Cost as a % of Revenue from Operations |
52.27% | 54.58% | 50.39% | 67.91% |
Rationale for changes in Cost of Goods as a percentage of Revenue from Operations from FY 2022-23 to FY 2023-24 and FY 2024-25 to period ended September 30th, 2025:
> Decrease in cost of goods attributable to revenue from operations was driven by higher revenue and improved cost efficiency. Discussion on Balance Sheet Items Long / Short term borrowings:
Our borrowings include term loans from banks, working capital loans, cash credit, Business purpose loan, unsecured loan and vehicle loans. The Companys total long-term borrowings stood at ?1,183.85 lakhs as on September 30, 2025, compared to ?1,185.91 lakhs as on March 31, 2025, and ?1,054.51 lakhs in FY 2023-24. The borrowings primarily comprise secured loans from banks and NBFCs and unsecured loans from directors and related parties. The marginal change in long-term debt reflects stable financing arrangements and consistent debt servicing. Short-term borrowings amounted to ?729.30 lakhs as on September 30, 2025, compared to ?851.95 lakhs as on March 31, 2025, and ?704.63 lakhs in FY 2023-24. The reduction in short-term debt during the period was mainly due to repayment of cash-credit facilities and better working capital management.
Trade Receivables:
Our Companys trade receivables stood at ?1,390.20 lakhs as on September 30, 2025, compared to ?1,480.05 lakhs as on March 31, 2025, ?909.83 lakhs as on March 31, 2024, and ?453.25 lakhs as on March 31, 2023. The marginal decrease during the current period indicates improved collection efficiency and timely realization from customers. The overall increase in receivables over the past years aligns with the significant growth in revenue from operations, which increased from ?2,059.06 lakhs in FY 2022-23 to ?3,156.02 lakhs for the half year ended September 30, 2025..
Trade Payables:
Our trade payables increased from ?359.33 lakhs in FY 2022-23 to ?638.78 lakhs in FY 2023-24 and further to ?727.97 lakhs in FY 2024-25, with a balance of ?415.88 lakhs as on September 30, 2025. The rise in trade payables was primarily driven by higher procurement of raw materials and components in line with the increase in production and sales volumes during the year. Additionally, extended credit terms negotiated with suppliers and timing differences in payments around the year-end also contributed to the higher outstanding balance.
Inventories:
Our inventories increased from ?325.76 lakhs in FY 2022-23 to ?527.60 lakhs in FY 2023-24 and further to ?628.89 lakhs in FY 202425, representing a growth of 61.96% from FY 2022-23 to FY 2023-24 and 19.20% from FY 2023-24 to FY 2024-25. As on September 30, 2025, inventories stood at ?632.11 lakhs. The increase was primarily driven by higher stocking of raw materials and finished goods to meet anticipated demand and support the growing scale of operations. The Company continues to maintain optimal inventory levels to ensure smooth production while effectively managing carrying costs.
Short Term Loans and Advances:
Our short-term loans and advances stood at ?404.24 lakhs as on September 30, 2025, compared to ?184.44 lakhs as on March 31, 2025, ?346.20 lakhs in FY 2023-24, and ?64.46 lakhs in FY 2022-23. The significant increase in FY 2023-24 was primarily due to higher advances to suppliers amounting to ?331.74 lakhs, reflecting the procurement requirements for increased production. In FY 2024-25, the balance declined to ?184.44 lakhs mainly due to a reduction in advances to suppliers to ?166.94 lakhs. The subsequent rise to ?404.24 lakhs as of September 30, 2025, was largely attributable to higher advances to suppliers of ?376.75 lakhs and preliminary expenses of ?13.45 lakhs related to the proposed IPO.
Information required as per Item (II)(C)(iv) of Part A of Schedule VI to the SEBI Regulations:
An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:
1. Unusual or infrequent events or transactions:
There has not been any unusual events or transactions on account of our business activity.
2. Significant economic changes that materially affected or are likely to affect income from continuing operations:
Other than as described in the section titled “Risk Factors” beginning on page 28 of this Red Herring Prospectus, to our knowledge there are no known significant economic changes that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.
3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations:
Apart from the risks as disclosed under Section “Risk Factors” beginning on page 28 of the Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.
4. Future changes in the relationship between costs and revenues:
Other than as described in the sections “Risk Factors”, “Our Business” and “Managements Discussion and Analysis of Financial
Condition and Results of Operations” on pages 28, 108 and 220 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.
5. Segment Reporting:
Our company operates in a single segment i.e. Ferrous Casting
6. Status of any publicly announced New Products or Business Segment:
Our Company has not announced any new product or service during the last three financial years.
7. Seasonality of business:
Our business is not subject to seasonality. For further information, see “Industry Overview” and “Our Business” on pages 101 and 108 respectively.
8. Dependence on single or few customers:
Substantial portion of our revenue has been dependent upon few customers with which we do not have any firm commitments. For details, please refer to risk factor “Substantial portion of our revenue has been dependent upon few customers with which we do not have any firm commitments. The loss of any one or more of our major customers would have a material adverse effect on our business, cash flows, results of operations and financial conditions” on page 29 of this DRHP.
9. Competitive conditions:
Competitive conditions are as described under the Chapter “Our Business - Competition” beginning on page 116 of this Red Herring Prospectus.
10. Details of material developments after the date of last balance sheet i.e., September 30, 2025:
After the date of last Balance sheet i.e., September 30, 2025, the following material events have occurred after the last audited period:
1. Incorporation of Foreign Subsidiary: Foreign Subsidiary in the name and style of Gallard Steel Europe B.V. has been incorporated in Netherlands. Dated October 21st, 2025
CAPITALISATION STATEMENT
Particulars |
Pre-Issue
30-09-2025 |
Post Issue |
Borrowings |
||
Short term debt (A) |
729.30 | - |
Long Term Debt (B) |
1,183.85 | - |
Total debts (C) |
1,913.14 | - |
Shareholders funds |
||
Equity share capital |
700.00 | * |
Reserve and surplus - as restated |
1,437.54 | * |
Total shareholders funds |
2,137.54 | * |
Long term debt / shareholders funds |
0.55 | * |
Total debt / shareholders funds |
0.90 | * |
* The corresponding post issue figures are not determinable at this stage pending the completion of public issue and hence have not been furnished.
Short term Debts represent which are expected to be paid/payable within 12 months.
Long term Debts represent debts other than short term Debts as defined above.
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