OPERATIONS
The following discussion and analysis of our financial condition and results of operations for the Fiscal Year 2025, Fiscal Year 2024 and Fiscal Year 2023 is based on, and should be read in conjunction with, our Restated Financial Information, including the schedules, notes and significant accounting policies thereto, included in the chapter titled “Restated Financial Information ” beginning on page 197 of this Draft Red Herring Prospectus. Our Restated Financial Information has been derived from our audited financial statements and restated in accordance with the SEBI ICDR Regulations and the ICAI Guidance Note. Our financial statements are prepared in accordance with AS.
You should read the following discussion of our financial condition and results of operations together with our restated financial information included in this Draft Red Herring Prospectus. You should also read the section titled “Risk Factors” beginning on page 32 of this Draft Red Herring Prospectus, which discusses a number offactors, risks, and contingencies that could affect our financial condition and results of operations. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year are to the twelvemonth period ended March 31 of that year.
In this section, unless the context otherwise requires, any reference to “we”, “us ” or “our ” refers to Nanta Tech Limited, our Company. Unless otherwise indicated, financial information included herein are based on our “Restated Financial Information” for the Fiscal Year 2025, Fiscal Year 2024 and Fiscal Year 2023 included in this Draft Red Herring Prospectus beginning on page 197 of this Draft Red Herring Prospectus.
Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be “Forward Looking Statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.
Business Overview
Our Company is engaged in the business of Audio Visual (AV) integration, supply and distribution of AV Products, Service Robots and Software Development related services. We provide comprehensive, endtoend AV integration solutions which includes system design, integration and management and onsite support. Our diverse portfolio of customized offerings and our ability to tailor solutions of both large scale and smallscale clients to meet the specific requirements of each client have helped us build a loyal customer base across a broad spectrum of industries. We are offering our customized solution to various sectors such as corporates, education, hospitality and manufacturing industry and others. Our offerings play a vital role in driving digital transformation across sectors.
In addition to providing AV integration services, our company is actively involved in the direct selling and distribution of a wide range of AV products. These include, but are not limited to indoor and outdoor active LED screens, professional display screens (both touch and nontouch), digital signage displays, digital podiums, video conferencing cameras, processors, media players, speakers, microphones, amplifiers, unified communication (UC) devices as well as mounts, cables, and other related accessories. This segment comprises of procuring AV and networking products from both domestic and international vendors based on our specifications for further sale including sale under our brand “ NANTA”.
Further, our company is also engaged in the procurement of service robots from various vendors as per our specifications. Once the required software is installed, the robots are thoroughly tested, branded, marketed, and sold to the end customer under our brand “ALLBOTIX”. As part of our service offerings, we provide robots on a demo basis to our clients for various events. This initiative allows us to enhance client experiences.
Additionally, our company is also providing software development services whereby our inhouse team designs and develops customized software across various domains, including robotics, AI tools, mobile applications, portals, and websites. Our holistic approach ensures seamless integration between digital platforms and physical communication systems, enhancing productivity, collaboration, and business growth.
We can classify our business in following verticals:
Our Revenue bifurcations as per our business verticals are as follows:
(Z in Lakhs)
For the Year ended |
||||||
March 31, 2025 |
March 31, 2024 |
March 31, 2023 |
||||
| Amount | % | Amount | % | Amount | % | |
| AV integration | 3,886.88 | 75.86% | 2,068.38 | 77.77% | 806.79 | 84.42% |
| Sale and Distribution of AV Products | 244.46 | 4.77% | 191.96 | 7.22% | 148.94 | 15.58% |
| Service Robots | 545.71 | 10.65% | 119.33 | 4.49% | ||
| Software Development related Services | 446.51 | 8.71% | 279.95 | 10.53% | ||
| Total | 5,123.56 | 100.00% | 2,659.62 | 100.00% | 955.72 | 100.00% |
*As certified by Statutory Auditor of our Company, by way of their certificate dated September 22, 2025.
Our company is certified with ISO 9001:2015, ISO 160001:2017, FCC QVA certificate, UL (standard for safety) certificate and CE QVA certificate for manufacturing of premium hightech audiovisual products that deliver an unparalleled experience in sound and visuals. Our business is driven by a qualified team that ensures proficient handling of all aspects, from installation and connectivity to programming and aftersales services.
We are led by our promoters, Mayank Arvindbhai Jani, Managing Director, having more than 6 years of experience in the AudioVisual industry, while Mansiben Mayankkumar Jani, our Chairperson & Whole Time Director, has over 10 years of experience, including 4 years in Human Resources and 6 years in the AudioVisual industry. Each of them brings a unique set of operational strengths to the Company. For more details, see Our Management Brief Profile of our Directors on page 178.
We are operating from our registered office located in Ahmedabad, Gujarat having robust infrastructure, including desktop and laptops for development, support and testing, as well as surveillance system in all facilities to prevent physical data security and antivirus for any data theft. Additionally, we maintain redundant internet leased lines and an uninterrupted power supply to support continuous operations. Our presence extends across various regions in India through a network of dealers and distributors, we serve clients across various regions in India. A significant portion of our business is generated through system integrators and contractors on a subcontracting basis, making our revenue model predominantly B2B. For a detailed breakdown of revenue, please refer to page no. 148.
Key Performance Indicators of our Company.
As per Restated Financial Information
(Z in Lakhs, otherwise mentioned)
| Key Financial Performance | March 31, 2025 | March 31, 2024 | March 31, 2023 |
| Revenue from Operations (1) | 5,123.56 | 2,659.62 | 955.72 |
| EBITDA (2) | 648.32 | 389.87 | 97.41 |
| EBITDA Margin (%) (3) | 12.65% | 14.66% | 10.19% |
| PAT (4) | 471.49 | 259.28 | 19.21 |
| PAT Margin (%) (5) | 9.20% | 9.75% | 2.01% |
| Return on Equity (%) (6) | 46.79% | 77.77% | 38.14% |
| Debt to Equity Ratio (times) (7) | 0.04 | 5.70 | |
| Current Ratio (times) (8) | 1.75 | 1.62 | 1.48 |
| Return on capital employed (%) (9) | 50.15% | 63.16% | 22.32% |
| Net capital Turnover ratio (%) (10) | 5.58 | 6.73 | 3.90 |
*As certified by Statutory and Peer Review Auditor of our Company, by way of their certificate dated September 22, 2025.
Notes:
<1) Revenue from operations means revenue from sales 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.
<4pat is calculated as Profit before tax Tax Expenses
<5 ‘pa t Margin is calculated as PA T for the year divided by revenue from operations <6 Return on Equity is the ratio of Profit after Tax and Average Shareholder Equity <7) Debt to Equity ratio is calculated as Long Term Debt + Short Term Debt divided by equity <8 Current Ratio is calculated by dividing Current Assets by Current Liabilities
<9 Return on Capital Employed is calculated as follows: Profit before tax + Finance Costs <EBIT) divided by <Tangible Net Worth + Total Debt + Deferred Tax Liabilities)
<10> Net Capital Turnover Ratio is calculated as sales of products divided by/Average working capital
(Z in Lakhs, otherwise mentioned)
| Key Operational Indicators | March 31, 2025 | March 31, 2024 | March 31, 2023 |
| No. of Clients | 100 | 163 | 117 |
| No. of Repeated Clients | 51 | 74 | 68 |
| % of Repeated Clients | 51.00% | 45.40% | 58.12% |
| Revenue From Repeated Clients <Rs. in Lakhs) | 3947.80 | 2065.50 | 897.62 |
| % of Revenue from Repeated Clients | 77.05% | 77.66% | 93.92% |
*As certified by Statutory and Peer review Auditors, by way of their certificate dated September 22, 2025.
Notes:
<1) % of Repeated Clients is Calculated as No. Repeated Clients divided by No. of Clients in the Current Year *100 <2) % of Revenue from Repeated Clients is Calculated as Revenue from Repeated Clients divided by Revenue from Operation *100
Significant Developments After March 31, 2025
Except as discussed below and elsewhere in this Draft Red Herring Prospectus, in the opinion of the Board of Directors of our Company, since the date of March 31, 2025 as disclosed in this Draft Red Herring Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months.
The Initial Public Offer has been authorized by our Board pursuant to resolutions passed at its meetings held on July 03, 2025 and by our Shareholders pursuant to a special resolution passed at their Annual General Meeting held on August 22, 2025.
Statement of Significant Accounting Policies
For details in respect of Statement of Significant Accounting Policies, please refer to the chapter titled “Restated Financial Information ” beginning on page 197.
Key Components of the Companys Balance Sheet
The following table sets forth selected financial data derived from our restated statement of assets & liabilities as at Fiscal 2025, 2024, and 2023:
(Z in Lakhs)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Liabilities | |||
| Longterm Borrowings | 49.57 | 171.10 | |
| ShortTerm Borrowings | 0.78 | 176.49 | |
| Trade Payables | 1,412.43 | 875.68 | 218.98 |
| Shortterm provisions | 200.55 | 53.19 | 13.42 |
| Other Current Liabilities | 42.98 | 18.70 | 12.94 |
| Assets | |||
| Property, Plant & Equipment and Intangible Assets | 208.93 | 15.32 | 20.33 |
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Trade receivables | 2,078.70 | 1,127.76 | 69.95 |
| Inventories | 816.72 | 365.13 | 296.25 |
| Cash and cash equivalents | 4.95 | 20.58 | 11.45 |
| Shortterm loans and advances | 6.76 | 21.66 | 247.06 |
A) LongTerm Borrowings:
The companys longterm borrowings have changed from ?171.10 Lakhs in Fiscal 2023 to Nil in Fiscal 2024 to ?49.57 Lakhs in Fiscal 2025.
(Z in Lakhs)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Secured | |||
| Vehicle Loan From Bank | 10.13 | ||
| Term Loan From Bank | 24.71 | ||
| Term Loan From NBFCs | 31.28 |
Unsecured
| Term Loan From Bank | 9.52 | ||
| Term Loan From NBFCs | 82.60 | ||
| Loan from Directors | 18.29 | ||
| Loan from Relatives of Directors/ Proprietors | 24.39 | ||
| Loan from Employees & others | 19.76 | ||
| 49.57 | 171.10 |
The companys longterm borrowings decreased from ^171.10 Lakhs in Fiscal 2023 to Nil in Fiscal 2024, following the prepayment of all outstanding loans as part of the business transfer from MNT Technologies to Nanta Tech Limited. However, in Fiscal 2025, longterm borrowings increased to ?49.57 Lakhs, driven by fresh loans availed from NBFCs and Directors to support the companys operational funding requirements.
B) ShortTerm Borrowings:
(Z in Lakhs)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Current Maturities of LongTerm Debt | |||
| Secured | |||
| Vehicle Loan From Bank | 3.19 | ||
| Term Loan From Bank | 25.76 | ||
| Term Loan From NBFCs | 0.78 |
Unsecured
| Term Loan From Bank | 9.22 | ||
| Term Loan From NBFCs | 104.29 |
Loans Repayable on Demand Secured
| Working Capital Loan from bank | 34.02 | ||
| 0.78 | 176.49 |
The companys shortterm borrowings decreased from ?176.49 Lakhs in Fiscal 2023 to Nil in Fiscal 2024, partially due to payment of current maturities of longterm debts & due to prepayment of remaining borrowings due to the transfer of Business from MNT Technologies to Nanta Tech Limited. Further, it increased to ?0.78 Lakhs in Fiscal 2025 due to current maturities of term loans taken from NBFCs during the year.
C) Trade Payables:
Trade payables include dues payable to creditors. The companys payables increased from U218.98 Lakhs in Fiscal 2023 to ?875.68 Lakhs in Fiscal 2024 to ?1,412.43 Lakhs in Fiscal 2025, which is in line with the growing expenses of the company. The following are details of the Trade Payables of the company:
(Z in Lakhs)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Total outstanding dues of micro enterprises and small enterprises | 673.03 | 203.15 | 74.99 |
| Total outstanding dues of creditors other than micro enterprises and small enterprises | 739.41 | 672.53 | 144.00 |
| 1,412.43 | 875.68 | 218.98 |
D) Shortterm Provisions:
The companys shortterm provisions have increased from ?13.42 Lakhs in Fiscal 2023 to ?53.19 Lakhs in Fiscal 2024 to ?200.55 Lakhs in Fiscal 2025, due to an increase in the provision of income tax, which is in line with the growing operations of the company. The table below shows details of the shortterm provisions of the company:
(Z in Lakhs)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Provision for Gratuity | 0.01 | ||
| Provision for Income Tax | 200.54 | 53.18 | 13.42 |
| 200.55 | 53.19 | 13.42 |
E) Other Current Liabilities
The companys other current liabilities have increased from ?12.94 Lakhs in Fiscal 2023 to ?18.70 Lakhs in Fiscal 2024 to ?42.98 Lakhs in Fiscal 2025. The table below shows details of the shortterm provisions of the company:
(Z in Lakhs)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Advance Received from Customers | 3.78 | 3.33 | 8.63 |
| TDS & TCS Payable | 27.27 | 7.11 | 4.31 |
| PT Payable | 0.26 | 0.04 | |
| Audit Fees Payable | 7.00 | 2.00 | |
| Electricity Bill Payable | 0.07 | 0.09 | |
| Conveyance Expense Payable | 0.07 | ||
| Director Remuneration Payable | 2.00 | ||
| Salary Payable | 4.54 | 4.13 | |
| 42.98 | 18.70 | 12.94 |
The companys other current liabilities increased due to an increase in TDS Payable, an increase in expenses payable such as salary payable, directors remuneration payable, audit fees payable, etc, which was offset by a decrease in advances received from customers of the company.
F) Property, Plant & Equipment and Intangible Assets:
The following are the details of “Property, Plant & Equipment and Intangible Assets
(Z in Lakhs)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Property, Plant and Equipment | 10.56 | 15.32 | 20.33 |
| Intangible Assets | 198.37 | ||
| 208.93 | 15.32 | 20.33 |
The companys Property, Plant & Equipment and Intangible Assets have decreased from ?20.33 Lakhs in Fiscal 2023 to ?15.32 Lakhs in Fiscal 2024. This was on account of depreciation charged during the fiscal year. Further, it was increased to ?208.93 Lakhs in Fiscal 2025 due to the purchase of Intangible assets (Software servers) of ?208.72 Lakhs during the year, which was offset by depreciation charged during the year.
G) Trade receivables:
Trade receivables refer to outstanding dues from customers that remain unpaid. The following are details of the Trade receivables of the company:
(Z in Lakhs)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Trade Receivables | 2,078.70 | 1,127.76 | 69.95 |
| 2,078.70 | 1,127.76 | 69.95 |
The companys trade receivables increased from ?69.95 Lakhs in Fiscal 2023 to ?1,127.76 Lakhs in Fiscal 2024 to ?2,078.70 Lakhs in Fiscal 2025, which is in line with the growing operations of the company.
H) Inventories:
The companys inventory increased from ?296.25 Lakhs in Fiscal 2023 to ?365.13 Lakhs in Fiscal 2024 to ?816.72 Lakhs in Fiscal 2025 due to an increase in Purchases of Stockintrade, which is in line with the growing operations of the company. The following are the details of the Inventories of the company:
(Z in Lakhs)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| StockinTrade | 816.72 | 365.13 | 296.25 |
| 816.72 | 365.13 | 296.25 |
I) Cash & Cash Equivalents:
The companys cash & cash equivalents changed from ^11.45 Lakhs in Fiscal 2023 to ?20.58 Lakhs in Fiscal 2024 to ?4.95 Lakhs in Fiscal 2025, which is in line with the operations of the company. The following are the details of the Cash & Cash Equivalents of the company:
(Z in Lakhs)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Cash in Hand | 2.66 | 12.82 | 4.96 |
| Balance in Current Account | 2.10 | 7.76 | 6.49 |
| Other Bank Balance | |||
| Fixed Deposits (having original Maturity of more than 3 Months and remaining Maturity of less than 12 Months) | 0.19 | ||
| 4.95 | 20.58 | 11.45 |
J) Shortterm Loans & Advances:
The companys Shortterm loans & advances decreased from ?247.06 Lakhs in Fiscal 2023 to ?21.66 Lakhs in Fiscal 2024 to ?6.76 Lakhs in Fiscal 2025 due to a decrease in GST receivable, advance given to suppliers, advance given to related parties & TDS receivable from NBFCs. The following are the details of the Shortterm loans & advances of the company:(Z in Lakhs)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| GST Receivable | 3.39 | 18.53 | 16.37 |
| Advance Given to Supplier | 3.37 | 3.13 | 25.71 |
| Advance Given to Related Party | 200.71 | ||
| TDS Receivable from NBFCs | 4.27 | ||
| 6.76 | 21.66 | 247.06 |
Results of our Operation
The following discussion on results of operations should be read in conjunction with the Restated Financial Information of our Company for the Fiscal Year 2025, Fiscal Year 2024 and Fiscal Year 2023:
(Z in Lakhs)
For the Year Ended on |
||||||||||||
March 31, 2025 |
% of Total Income |
March 31, 2024 |
% of Total Income |
March 31, 2023 |
% of Total Income |
|||||||
| Revenue From Operations | 5,123.56 |
100.00% |
2,659.62 |
100.00% |
955.72 |
99.68% |
||||||
| Other Income | 0.00% |
0.11 |
0.00% |
3.09 |
0.32% |
|||||||
| Total Income | 5,123.56 |
100.00% |
2,659.73 |
100.00% |
958.81 |
100.00% |
||||||
| Expenditure | ||||||||||||
| Purchases of Stock in Trade | 4,469.93 |
87.24% |
1,941.81 |
73.01% |
714.65 |
74.54% |
||||||
| Changes in Inventories of Finished Goods, WIP & Stockintrade | (451.59) |
(8.81%) |
(68.88) |
(2.51%) |
33.63 |
3.51% |
||||||
For the Year Ended on |
||||||||||||
March 31, 2025 |
% of Total Income |
March 31, 2024 |
% of Total Income |
March 31, 2023 |
% of Total Income | |||||||
| Employee Benefits Expense | 105.29 |
2.05% |
14.68 |
0.55% |
10.14 |
1.06% | ||||||
| Finance Cost | 2.72 |
0.05% |
36.21 |
1.36% |
65.51 |
6.83% | ||||||
| Depreciation and Amortisation Expenses | 15.54 |
0.30% |
7.28 |
0.27% |
9.32 |
0.97% | ||||||
| Other Expenses | 351.60 |
6.86% |
382.13 |
14.37% |
99.89 |
10.42% | ||||||
| Total Expenditure | 4,493.49 |
87.70% |
2,313.24 |
86.97% |
933.14 |
97.32% | ||||||
| Profit/(Loss) Before Tax | 630.07 |
12.30% |
346.49 |
13.03% |
25.68 |
2.68% | ||||||
| Tax Expense: | ||||||||||||
| Tax Expense for Current Year | 154.96 |
3.02% |
88.51 |
3.33% |
7.63 |
0.80% | ||||||
| Deferred Tax | 3.62 |
0.07% |
1.30 |
0.05% |
1.16 |
0.12% | ||||||
| Net Current Tax Expenses | 158.58 |
3.10% |
87.20 |
3.28% |
6.46 |
0.67% | ||||||
| Profit After Tax | 471.49 |
9.20% |
259.28 |
9.75% |
19.21 |
2.00% | ||||||
Factors affecting our Results of Operations
Our business is subjected to various risks and uncertainties, including those discussed in the section titled “Risk Factors”
beginning on page 32 of this Draft Red Herring Prospectus. Our results of operations and financial conditions are affected
by numerous factors including the following:
Our Company has acquired the business of M/s MNT Technologies (sole proprietorship firm of one of our Promoters) thus we have limited operating history as a Company. Our limited history as a Company can make it difficult for investors to evaluate our historical performance or future prospects and any future acquisition(s) can result in operating difficulties, integration issues and other adverse consequences;
We are highly dependent on certain customers for a substantial portion of our revenues. Loss of relationship with any of these customers may have a material adverse effect on our profitability and results of operations;
Our business and profitability heavily rely on the consistent and timely availability of products. Any disruption in supply or price volatility of these products can negatively impact our operations and financial health. Additionally, our dependence on thirdparty manufacturers/suppliers/vendors, without firm supply commitments or exclusive arrangements, poses a risk. The loss of any suppliers could adversely affect our business, operational outcomes, and financial condition;
Our future growth is dependent upon our ability to identify and maintain new products, technologies and customers that achieve market acceptance with acceptable margins;
Our business is dependent on global suppliers/manufacturers effectively maintaining, promoting or developing their brands and maintaining standard quality products including launching new AV (AudioVideo) products and service robots at regular intervals;
Our revenue is heavily reliant on our operations within certain geographical regions. Any adverse developments, such as economic downturns, political instability, or natural disasters, in these regions could significantly impact our revenue and overall financial performance. Additionally, any disruption, breakdown or shutdown of our operating facilities concentrated in Gujarat, may also have a material adverse effect on our business, financial condition, results of operations and cash flow;
Majority of our Revenue from operation is derived from one segment i.e. providing AudioVideo Solutions to our clients. Any disruption in the continuous supply from our vendors would have a material adverse effect on our business, results of operations and financial;
We could be subject to product liability claims, refunds and recalls or return of products, warranty claims which may have a material adverse impact, in which case our business and revenues, and ultimately our reputation, could be negatively affected;
We may face the risk of becoming obsolete due to rapid technological changes;
The industry in which we operate possess various risks and challenges could have a material adverse effect on our business, financial condition, cash flow, and results of operations;
Restrictions on import may adversely impact our business, cash flows and results of operations;
Key Components of the Companys Profit and Loss Statement
Revenue from operations: Revenue from operations mainly consists of Income from AV Integration, Sale and Distribution of AV Products, Service Robots, IT Software Development/Consulting Services, etc.
Other Income: Other Income includes Interest income, Incentives, etc.
Expenses: The Companys expenses consist of Purchases of StockinTrade, Employee Benefit Expenses, Finance Cost, Depreciation and Amortization Expense, Other Expenses, and tax expenses.
Purchases of StockinTrade: Purchases of StockinTrade include purchases of various products such as speakers, robots, etc.
Employee Benefits Expense: Employee benefit expenses include Salary & Wages, Remuneration to Directors and Gratuity Expenses.
Finance Cost: Finance Cost includes Interest Expenses and Other Borrowing Costs.
Depreciation and Amortization Expense: We recognize Depreciation and Amortization expense on a WDV basis as per the rates outlined in the Companies Act, 2013.
Other Expenses: Other expenses include Freight Charges, Legal & Professional fees, Rent, Rates & Taxes, Commission & Brokerage, etc.
Fiscal 2025 Compared with Fiscal 2024
(Z in Lakhs)
For the Year Ended on |
|||
| March 31, 2025 | March 31, 2024 | % Change | |
| Revenue From Operations | 5,123.56 | 2,659.62 | 92.64% |
| Other Income | 0.11 | (100.00%) | |
| Total Income | 5,123.56 | 2,659.73 | 92.63% |
| Expenditure | |||
| Purchases of Stock in Trade | 4,469.93 | 1,941.81 | 130.19% |
| Changes in Inventories of Finished Goods, WIP & Stockintrade | (451.59) | (68.88) | 555.60% |
| Employee Benefits Expense | 105.29 | 14.68 | 617.24% |
| Finance Cost | 2.72 | 36.21 | (92.49%) |
| Depreciation and Amortisation Expenses | 15.54 | 7.28 | 113.30% |
| Other Expenses | 351.60 | 382.13 | (7.99%) |
| Total Expenditure | 4,493.49 | 2,313.24 | 94.25% |
| Profit/(Loss) Before Tax | 630.07 | 346.49 | 81.84% |
| Tax Expense: | |||
| Tax Expense for Current Year | 154.96 | 88.51 | 75.08% |
| Deferred Tax | 3.62 | (1.30) | (377.40%) |
| Net Current Tax Expenses | 158.58 | 87.20 | 81.84% |
| Profit After Tax | 471.49 | 259.28 | 81.84% |
Revenue from Operation
Revenue from operations has increased by 92.64% from ?2,659.62 Lakhs in Fiscal 2024 to ?5,123.56 Lakhs in Fiscal 2025. The table below sets forth the details of the revenue bifurcation of the company:
(Z in Lakhs, except percentages)
For the year ended March 31, 2025 |
For the year ended March 31, 2024 |
||||
| Amount | % of Revenue from operations |
Amount | % of Revenue from operations |
||
| AV Integration | 3,886.38 | 75.85% | 1,911.72 | 71.88% | 103.29% |
| Sale and Distribution of AV Products | 244.46 | 4.77% | 191.96 | 7.22% | 27.35% |
| Service Robots | 545.70 | 10.65% | 119.33 | 4.49% | 357.31% |
| Software Development related Services | 447.01 | 8.72% | 436.61 | 16.42% | 2.38% |
| 5,123.56 | 100.00% | 2,659.62 | 100.00% | ||
The companys revenue increased due to the following reasons:
1) Growth in Service Robot Revenue The companys revenue from the sale of service robots saw a substantial increase of 357.31%, rising from ?119.33 Lakhs in FY 202324 to ?545.70 Lakhs in FY 202425. This growth was driven by a sharp rise in sales volume, with 161 units sold in FY 202425 compared to just 10 units in the previous year. As a result, the contribution of service robots to the companys Revenue from Operations increased from 4.49% in FY 202324 to 10.65% in FY 202425.
2) Increase in Revenue from other Business Segments The company has entered into agreements with multiple dealers, facilitating the expansion of its AudioVisual (AV) Integration business. As a result, revenue from AV integration rose from ^1,911.72 Lakhs in FY 202324 (accounting for 71.88% of revenue from operations) to ?3,886.38 Lakhs in FY 202425 (75.85% of revenue from operations).
Additionally, revenue from the sale and distribution of AV products grew by 27.35%, increasing from ?191.96 Lakhs in FY 202324 to ?244.46 Lakhs in FY 202425. Revenue from IT software development and consulting services also saw a modest increase of 2.38%, rising from ?436.61 Lakhs to ?447.01 Lakhs over the same period.
Other Income
Other income had decreased by ?0.11 Lakhs from ?0.11 Lakhs in Fiscal 2024 to Nil in Fiscal 2025 due to a reduction in Interest income during the year.
Purchases of StockinTrade
The companys purchases of stockintrade increased by 130.19% from ?1,941.81 Lakhs in Fiscal 2024 to ?4,469.93 Lakhs in Fiscal 2025. The increase in the companys purchases is directly attributable to the increase in its operations.
Employee Benefit Expenses
Employee benefit expenses had increased by ?90.61 Lakhs from ?14.68 Lakhs in Fiscal 2024 to ?105.29 Lakhs in Fiscal 2025. This was primarily due to an increase in Salary & Wages from ?12.50 Lakhs in Fiscal 2024 to ?62.87 Lakhs in Fiscal 2025 and an increase in Remuneration to directors from ?2.00 Lakhs in Fiscal 2024 to ?42.00 Lakhs in Fiscal 2025.
Finance Cost
Finance Cost had decreased by ?33.48 Lakhs from ?36.21 Lakhs in Fiscal 2024 to ?2.72 Lakhs in Fiscal 2025. This was primarily due to a decrease in Interest paid on borrowings from ?34.91 Lakhs in Fiscal 2024 to ?1.36 Lakhs in Fiscal 2025 due to prepayment of borrowings. This was offset by an increase in Bank Charges & Processing fees from ?1.30 Lakhs in Fiscal 2024 to ?1.36 Lakhs in Fiscal 2025.
Depreciation and Amortization Expenses
Depreciation had increased by 113.30% from ?7.28 Lakhs in Fiscal 2024 to ?15.54 Lakhs in Fiscal 2025. This was primarily due to the addition of property, plant, and equipment of ?0.43 Lakhs and intangible assets of ?208.72 Lakhs by the company during Fiscal 2025.
Other Expenses
Other expenses had decreased by 7.99% from ?382.13 Lakhs in Fiscal 2024 to ?351.60 Lakhs in Fiscal 2025. The decrease was primarily due to a decrease in freight expenses by ?46.69 Lakhs, and Commission & brokerage expenses by ?23.53 Lakhs. This was offset by an increase in Legal & professional fees by ?26.47 Lakhs, Rent, rates & Taxes by ?5.36 Lakhs, etc., in Fiscal 2025.
Tax Expenses
The Companys tax expenses increased by 81.84% from ?87.20 Lakhs in Fiscal 2024 to ? 158.58 Lakhs in Fiscal 2025. This was on account of an increase in Tax expenses of the current year by ?66.45 Lakhs and deferred tax by ?4.92 Lakhs in Fiscal 2025.
Profit after Tax
In Fiscal 2025, the Company reported a net profit of ?471.49 Lakhs attributable to owners, marking a growth of 81.84% from ?259.28 Lakhs in Fiscal 2024. This growth was primarily driven by an increase in Total Income, which rose from ?2,659.73 Lakhs in Fiscal 2024 to ?5,123.56 Lakhs in Fiscal 2025.
Despite the increase in the absolute amount of profits, the companys profit margin decreased from 9.75% in Fiscal 2024 to 9.20% in Fiscal 2025. This reduction in profit margin was on account of an increase in the Purchase of StockinTrade from 75.39% of total revenue in Fiscal 2024 to 87.24% of total revenue in Fiscal 2025 & an increase in employee benefit expenses from 0.55% of total revenue in Fiscal 2024 to 2.05% of total revenue in Fiscal 2025. This was offset by a decrease in other expenses from 14.37% of total revenue in Fiscal 2024 to 6.86% of total revenue in Fiscal 2025.
Fiscal 2024 Compared with Fiscal 2023
(Z in Lakhs)
For the Year Ended on |
|||
| March 31, 2024 | March 31, 2023 | % Change | |
| Revenue From Operations | 2,659.62 | 955.72 | 178.28% |
| Other Income | 0.11 | 3.09 | (96.35%) |
| Total Income | 2,659.73 | 958.81 | 177.40% |
| Expenditure | |||
| Purchases of Stock in Trade | 1,941.81 | 714.65 | 171.72% |
| Changes in Inventories of Finished Goods, WIP & Stockintrade | (68.88) | 33.63 | (304.83%) |
| Employee Benefits Expense | 14.68 | 10.14 | 44.70% |
| Finance Cost | 36.21 | 65.51 | (44.72%) |
| Depreciation and Amortisation Expenses | 7.28 | 9.32 | (21.81%) |
| Other Expenses | 382.13 | 99.89 | 282.55% |
| Total Expenditure | 2,313.24 | 933.14 | 147.90% |
| Profit/(Loss) Before Tax | 346.49 | 25.68 | 1249.50% |
| Tax Expense: | |||
| Tax Expense for Current Year | 88.51 | 7.63 | 1060.65% |
| Deferred Tax | (1.30) | (1.16) | 12.08% |
| Net Current Tax Expenses | 87.20 | 6.46 | 1249.50% |
| Profit After Tax | 259.28 | 19.21 | 1249.50% |
Revenue from Operation
Revenue from operations has increased by 178.28% from ?955.72 Lakhs in Fiscal 2023 to ?2,659.62 Lakhs in Fiscal 2024. The table below sets forth the details of the revenue bifurcation of the company:
(Z in Lakhs, except percentages)
For the year ended March 31, 2024 |
For the year ended March 31, 2023 |
||||
| Amount | % of Revenue from operations |
Amount | % of Revenue from operations |
||
| AV Integration | 1,911.72 | 71.88% | 798.85 | 83.59% | 139.31% |
| Sale and Distribution of AV Products | 191.96 | 7.22% | 148.94 | 15.58% | 28.88% |
| Service Robots | 119.33 | 4.49% | 0.00% | 100.00% | |
| Software Development related Services | 436.61 | 16.42% | 7.94 | 0.83% | 5,402.35% |
| 2,659.62 | 100.00% | 955.72 | 100.00% | ||
The companys revenue increased due to the following reasons:
1) Introduction of Service Robot Segment During FY 202324, the company launched a new business segment focused on the sale of service robots. During FY 2023 24, the company sold 10 robots, generating revenue of ^119.33 Lakhs, which accounted for 4.49% of its Revenue from Operations. There were no sales in this segment during FY 202223.
2) Increase in Revenue from Software Development related Services During the year, the company strategically shifted its focus to expand its Software Development related Services. As a result, revenue from this segment increased significantly from ?7.94 Lakhs in FY 202223 to ?436.61 Lakhs in FY 202324.
3) Increase in Revenue from Other Business Segments The company has started entering into strategic agreements with multiple dealers, facilitating the expansion of its AudioVisual (AV) Integration business. As a result, revenue from AV integration rose by 139.31% from ?798.85 Lakhs in FY 202223 to ^1,911.72 Lakhs in FY 202324. Additionally, revenue from the sale and distribution of AV products grew by 28.88%, increasing from ?148.94 Lakhs in FY 202223 to ?191.96 Lakhs in FY 202324.
Other Income
Other income had decreased by ?2.98 Lakhs from ?3.09 Lakhs in Fiscal 2023 to ?0.11 Lakhs in Fiscal 2024. This was mainly due to a decrease in incentive received by ?2.82 Lakhs and a decrease in Interest income by ?0.16 Lakhs during the year.
Purchases of StockinTrade
The companys purchases of stockintrade increased by 171.72% from ?714.65 Lakhs in Fiscal 2023 to ?1,941.81 Lakhs in Fiscal 2024. The increase in the companys purchases is directly attributable to the increase in its operations.
Employee Benefit Expenses
Employee benefit expenses had increased by 44.70% from ?10.14 Lakhs in Fiscal 2023 to ?14.68 Lakhs in Fiscal 2024. This was primarily due to an increase in Salary & Wages from ?10.14 Lakhs in Fiscal 2023 to ?12.50 Lakhs in Fiscal 2024 and an increase in Remuneration to directors from Nil in Fiscal 2023 to ?2.00 Lakhs in Fiscal 2024.
Finance Cost
Finance Cost had decreased by ?29.30 Lakhs from ?65.51 Lakhs in Fiscal 2023 to ?36.21 Lakhs in Fiscal 2024. This was primarily due to a decrease in Interest paid on borrowings from ?59.54 Lakhs in Fiscal 2023 to ??34.91 Lakhs in Fiscal 2024 and a decrease in Bank Charges & Processing fees from ?6.03 Lakhs in Fiscal 2023 to ?1.30 Lakhs in Fiscal 2024. This decrease was mainly due to reduction in total borrowings of the company.
Depreciation and Amortization Expenses
Depreciation had decreased by 21.81% from ?9.32 Lakhs in Fiscal 2023 to ?7.28 Lakhs in Fiscal 2024. This was primarily due to increase in current years depreciation.
Other Expenses
Other expenses had decreased by ?282.24 Lakhs from ?99.89 Lakhs in Fiscal 2023 to ?382.13 Lakhs in Fiscal 2024. This increase was primarily due to an increase in freight expenses by ?329.82 Lakhs, and Commission & brokerage expenses by ?23.53 Lakhs. This was offset by a decrease in Legal & professional fees by ?13.24 Lakhs and Packing & Courier charges by ?5.83 Lakhs, etc., in Fiscal 2024.
Tax Expenses
The Companys tax expenses increased by ?80.74 Lakhs from ?6.46 Lakhs in Fiscal 2023 to ?87.20 Lakhs in Fiscal 2024. This was on account of an increase in Tax expenses of the current year by ?81.05 Lakhs.
Profit after Tax
In Fiscal 2024, the Company reported a net profit of ?259.28 Lakhs attributable to owners, marking an increase from ?19.21 Lakhs in Fiscal 2023. This growth was primarily driven by an increase in Total Income, which rose from ?958.81 Lakhs in Fiscal 2023 to ?2,659.73 Lakhs in Fiscal 2024.
The companys profit margin also increased from 2.00% in Fiscal 2023 to 9.75% in Fiscal 2024. This increase in profit margin was on account of a decrease in the Finance Cost from 6.83% of total revenue in Fiscal 2023 to 1.36% of total revenue in Fiscal 2024 & a decrease in employee benefit expenses from 1.06% of total revenue in Fiscal 2023 to 0.55% of total revenue in Fiscal 2024. This was offset by an increase in other expenses from 10.42% of total revenue in Fiscal 2023 to 14.37% of total revenue in Fiscal 2024.
Cash Flows
(T in Lakhs)
| Particulars | Year ended March 31, 2025 | Year ended March 31, 2024* | Year ended March 31, 2023# |
| Net Cash from Operating Activities | (186.24) | 19.61 | 85.59 |
| Net Cash from Investing Activities | (209.15) | (2.70) | |
| Net Cash from Financing Activities | 379.57 | 0.98 | (93.38) |
| Net Increase/ (Decrease) in Cash & Cash Equivalents | (15.82) | 20.58 | (10.49) |
| Opening Balance of Cash & Cash Equivalent | 20.58 | 21.94 | |
| Closing Balance of Cash & Cash Equivalent | 4.76 | 20.58 | 11.45 |
*Nanta Tech was incorporated on June 26, 2023. The company acquired the business of MNT Technologies through a Business Transfer Agreement dated February 20, 2024. As the company was incorporated during the same financial year, its opening balance of Cash and Cash Equivalents is Nil
# The business of the proprietorship firm, MNT Technologies, was taken over by Nanta Tech Limited through a Business Transfer Agreement dated February 20, 2024. As a result, the closing balance of Cash and Cash Equivalents for FY 202223 does not match the opening balance for FY 202324.
Cash Flows from Operating Activities
For the financial year ended March 31, 2025
Our net cash used in operating activities for the year ended March 31, 2025, was (?186.24 Lakhs) as compared to the Profit Before Tax at ?630.07 Lakhs. Our operating profit before working capital changes was ?648.74 Lakhs for the financial year ended March 31, 2025 which was primarily adjusted against increase in trade receivables by (?950.95 Lakhs), increase in inventory by (?451.59 Lakhs), decrease in short term loans and advances by ?14.90 Lakhs, increase in trade payables by ?536.76 Lakhs, increase in other current liabilities by ?24.28 Lakhs and Net Income taxes paid of (?7.59 Lakhs).
For the financial year ended March 31, 2024
Our net cash generated from operating activities for the year ended March 31, 2024, was at ?19.61 Lakhs as compared to the Profit Before Tax at ?245.43 Lakhs. Our operating profit before working capital changes was ?246.42 Lakhs for the period ended March 31, 2024 which was primarily adjusted against increase in trade receivables by (?478.82 Lakhs), increase in inventory by (?365.13 Lakhs), increase in short term loans and advances by (?21.66 Lakhs), increase in trade payables by ?628.35 Lakhs, increase in other current liabilities by ?18.70 Lakhs and Net income taxes paid of (?8.26 Lakhs).
For the financial year ended March 31, 2023
Our net cash generated from operating activities for the year ended March 31, 2023, was at ?85.59 Lakhs as compared to the Profit Before Tax at ?25.68 Lakhs. Our operating profit before working capital changes was ?100.23 Lakhs for the financial year ended March 31, 2023 which was primarily adjusted against decrease in trade receivables by ?109.90 Lakhs, decrease in inventory by ?33.63 Lakhs, increase in short term loans and advances by (?84.87 Lakhs), decrease in trade payables by (?89.82 Lakhs), increase in other current liabilities by ?12.94 Lakhs and Net income tax refund of ?3.16 Lakhs.
Cash Flows from Investment Activities
For the financial year ended March 31, 2025
For the financial year ended March 31, 2025, the net cash used in Investing Activities was (?209.15 Lakhs). This was mainly on account of Purchase of Property, Plant and Equipment of (?0.43 Lakhs) and Purchase of Intangible Assets of (?208.72 Lakhs).
For the financial year ended March 31, 2024 Nil For the financial year ended March 31, 2023
For the financial year ended March 31, 2023, the net cash used in Investing Activities was (?2.70 Lakhs). This was mainly on account of the Purchase of Property, Plant and Equipment of (?2.47 Lakhs), increase in NonCurrent Investment of (?0.50 Lakhs) and Interest received of ?0.27 Lakhs.
Cash Flows from Financing Activities
For the financial year ended March 31, 2025
For the financial year ended March 31, 2025, the net cash generated from financing activities was ?379.57 Lakhs. This was mainly on account of proceeds from the Issue of Share Capital of ^331.94 Lakhs, proceeds from longterm borrowings of ?49.57 Lakhs, proceeds from ShortTerm Borrowings of ?0.78 Lakhs, and Finance Cost of (?2.72 Lakhs).
For the financial year ended March 31, 2024
For the financial year ended March 31, 2024, the net cash generated from financing activities was ?1.00 Lakhs. This was mainly on account of proceeds from the Issue of Share Capital of ?1.00 Lakhs and Finance Cost of (?0.02 Lakhs).
For the financial year ended March 31, 2023
For the financial year ended March 31, 2023, the net cash used in financing activities was (?93.38 Lakhs). This was mainly on account of proceeds from LongTerm Borrowings of ?24.71 Lakhs, repayment of LongTerm Borrowings of (?134.84 Lakhs), proceeds from ShortTerm Borrowings of ?70.61 Lakhs, capital introduced of ?70.61 Lakhs. Capital withdrawn of (?6.49 Lakhs) and Finance Cost of (?66.24 Lakhs).
Related Party Transactions
Related party transactions with certain of our promoters, directors and their entities and relatives primarily relate to remuneration, salary, loans & advances, sales and the issue of Equity Shares. For further details of related parties kindly refer chapter titled “RestatedFinancial Statements” beginning on page 197.
OffBalance Sheet Items
We do not have any other offbalance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purpose of facilitating offbalance sheet arrangements.
Qualifications 0f the Statutory Auditors which have not been given effect to in the Restated Financial Statements
There are no qualifications in the audit report that require adjustments in the Restated Financial Statements.
Qualitative Disclosure About Market Risk Financial Market Risks
Market risk is the risk of loss related to adverse changes in market prices, including interest rate risk. We are exposed to interest rate risk, inflation and credit risk in the normal course of our business.
Interest Rate Risk
Our financial results are subject to changes in interest rates, which may affect our debt service obligations in future and our access to funds.
Effect of Inflation
We are affected by inflation as it has an impact on the salary, wages, etc. In line with changing inflation rates, we rework our margins to absorb the inflationary impact.
Credit Risk
We are exposed to credit risk on monies owed to us by our customers. If our customers do not pay us promptly, or at all, we may have to make provisions for or write off such amounts.
Other Matters
Details of Default, if any, Including Therein the Amount Involved, Duration of Default and Present Status, in Repayment of Statutory Dues or Repayment of Debentures or Repayment of Deposits or Repayment of Loans from any Bank or Financial Institution
Except as disclosed in chapter titled “Restated Financial Statements” beginning on page 197 of this Draft Red Herring Prospectus, there have been no defaults in payment of statutory dues or repayment of debentures and interest thereon or
repayment of deposits and interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.
Material Frauds
There has been no material fraud, as reported by our statutory auditor, committed against our Company, in the last three Fiscals.
Unusual or infrequent events or transactions
Except as described in this Draft Red Herring Prospectus, during the years under review there have been no transactions or events, which in our best judgment, would be considered “unusual” or “infrequent”.
Significant Economic Changes that Materially Affected or are Likely to Affect Income from Continuing Operations
Indian rules and regulations as well as the overall growth of the Indian economy have a significant bearing on our operations. Major changes in these factors can significantly impact income from continuing operations. There are no significant economic changes that materially affected our Companys operations or are likely to affect income from continuing operations except as described in chapter titled “RiskFactors” beginning on page 32.
Known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations
Other than as described in the section titled “Risk Factors ” and chapter titled “Managements Discussion and Analysis of Financial Conditions and Results of Operations ”, beginning on page 32 and 245 of this Draft Red Herring Prospectus respectively to our knowledge there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our company from continuing operations.
Future relationship between Costs and Income
Other than as described in the section titled “Risk Factors” beginning on page 32 of this Draft Red Herring Prospectus, to our knowledge there are no factors, which will affect the future relationship between costs and income, or which are expected to have a material adverse impact on our operations and finances.
The extent to which material increases in revenue or income from operations are due to increased volume, introduction of new products or services or increased prices
Changes in revenue in the last three financial years are as explained in the part “Financial Year 2024 25 compared with Financial Year 202324 and Financial Year 202324 Compared with Financial Year 202223” above.
Significant dependence on a single or few Suppliers or Customers
Significant proportion of our total revenue have historically been derived from a limited number of customers. Our top ten customers for the Fiscals 2025, 2024 and 2023 is amounting to t4,711.35lakhs, t2,143.13lakhs and t813.55lakhs constituting 91.95%, 80.58% and 85.12% respectively of our revenue from top ten clients.
Our business is, therefore, heavily dependent on our relationships with empanelled vendors. Purchases made from our top 10 suppliers for the financial year ended March 31, 2025, 2024 and 2023, were t 4,287.21lakhs, t 1,827.30lakhs and t 550.94lakhs representing 95.91%, 91.12% and 77.09% of our total purchases. We place purchase orders with empaneled vendors from timetotime basis our requirements and prices for products are normally based on the quotes we receive from these empaneled vendors.
Status of any publicly announced new products or business segments
Please refer to the chapter titled “Our Business” beginning on page 133 of this Draft Red Herring Prospectus for new products or business segments.
The extent to which the business is seasonal
Our business is not seasonal in nature.
Competitive Conditions
Competitive conditions are as described in the Chapter “Our Business ” beginning on page 133 of this Draft Red Herring Prospectus.
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