MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
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 164. You should also read the section titled "Risk Factors" on page 21 and the section titled "Forward Looking Statements" on page 19 of this Red Herring Prospectus, which discusses a number of factors 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 Restated Financial 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 August 03, 2026 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
We are an ISO 9001:2015 certified company engaged in the manufacturing of transformers across different voltage ratings. Our product offerings include distribution transformers, power transformers, transformers for solar applications, and special purpose transformers. These transformers are utilized across multiple sectors to facilitate the transmission and distribution of electrical energy. We focus on delivering quality and reliability in our product range, supported by standardized manufacturing practices and compliance with applicable industry norms. Transformers serve critical functions in power generation, transmission, and distribution networks, and are deployed in diverse industrial and infrastructure projects.
Our Company was incorporated in 1995, in the initial years of operation, we were primarily engaged in the repair and servicing of distribution and power transformers. Recognizing the growth potential in the power infrastructure sector and leveraging our experience, we established the manufacturing facility of transformers in the year 2005-06 from our first manufacturing facility located at Plot no. 1413, HSIDC, Industrial Estate, Rai, District Sonepat. Subsequently, to meet increasing market demand and expand our production capacity, we established a second manufacturing facility located at Plot No. 1676-1677, Sector-38, Phase-I, HSIIDC Industrial Estate, Rai, District Sonepat, Haryana. In line with our strategic growth plans and to improve operational efficiency, we have implemented a synergistic system of backward integration. As part of this integration, our group company, SHR Powers Private Limited, manufactures transformer tanks/bodies, which are key components utilized in the production of our transformers. This integration enables us to optimize our production processes, achieve cost efficiencies, enhance control over our supply chain, and reduce reliance on external suppliers.
We follow standard practices in quality assurance, regulatory compliance, and process improvement to meet customer and industry requirements. Our approach has supported the development of long-term relationships with a wide range of customers, including government entities, utility companies, EPC contractors, and industrial clients. The Company is an approved vendor for over 20 entities, which includes power distribution corporations, public sector undertakings, and public utility companies. Details of our revenue bifurcation based on transformer supplied to government and non-government customer provided below-
| (Amount in Rs. Lakhs) | ||||||
Particulars |
F.Y. 25-26 |
F.Y. 24-25 |
F.Y. 23-24 |
|||
| Amount | % of Revenue from Operations | Amount | % of Revenue from Operations | Amount | % of Revenue from Operations | |
B2B |
17873.84 | 49.22% | 8758.24 | 27.01% | 7060.51 | 43.87% |
B2G |
18419.15 | 50.73% | 23662.74 | 72.99% | 9034.10 | 56.13% |
B2C |
17.83 | 0.05% | - | - | - | - |
TOTAL |
36310.82 | 100% | 32420.98 | 100% | 16094.61 | 100% |
As of March 31, 2026, we operate through two manufacturing units, Plot No. 1676-1677, Sector-38, Phase-I, HSIIDC Industrial Estate, Rai, District Sonepat, Haryana and Plot no. 1413, HSIDC, Industrial Estate, Rai, District Sonepat collectively spread across approximately 2025 sq. mtrs and 1012.5 sq. mtrs. These facilities have a combined installed production capacity of approximately 15,00,000 KVA for Distribution transformer and 1350 MVA for Power transformer as on March 31, 2026. Our manufacturing units are equipped with requisite machinery and equipment, including wire jointing machine, CU strip machine, aluminium strip machine, slating machine, HT covering machine, power press machine, LT winding machine, HT winding machine, ovens, cranes, power disc welding machine, oil filtration machine, compressor, cutting machine and drill machines, etc. enabling us to maintain quality standards and efficiency in our production processes. Our manufacturing operations are conducted in accordance with applicable industry standards and regulatory guidelines. The company places emphasis on the strict manufacturing norms, testing, and timely delivery of transformers, all tailored to meet specific customer requirements.
Our company aims to deliver single/three phase CRGO oil filled distribution or power transformers which are designed according to customer requirements and individual factors like voltage, power, climate, system landscape, sound level etc. We implement control measures at each stage of the manufacturing process to ensure that the transformers comply with applicable technical specifications, regulatory standards, and customer requirements. Our manufacturing process uses key raw materials such as CRGO (Cold Rolled Grain Oriented) steel, copper/aluminium conductors, transformer oil, insulating materials and fabricated transformer tanks. Over the years, we have established long-standing relationships with our suppliers, enabling us to procure quality raw materials in a timely manner and at competitive prices.
The manufacturing process includes core cutting, coil winding, core-coil assembly, tank fabrication, drying, oil filling, final assembly, and testing. We have established in-house facilities for core cutting/slitting, wire drawing or strip drawing, tank fabrication etc. which helps us in meeting the design requirements and expectations of our customers with different types of shapes and size, it also helps us achieve sustain quality standards, reduce dependence on third party and make our process cost effective. We also operate an in-house testing laboratory equipped to conduct routine and type tests in line with relevant Indian Standards (IS) and customer requirements. Our company is ISO 9001:2015 certified. We manufacture products in compliance with Bureau of Indian Standards (BIS) and are authorized to use the ISI mark on applicable products. Additionally, several of our products are certified under the Bureau of Energy Efficiency (BEE) STAR rating program, supporting energy efficiency and compliance with regulatory norms.
Our business operations are led by our Promoter, Sanjeev Kanda, who has played a key role in the establishment and growth of the Company. With around 31 years of experience in the transformer industry, he has contributed towards strategic planning, operational execution, and expansion of our Company. Under his leadership, the Company has expanded its operations to a full-scale manufacturing and has established a presence in power transmission sector. He is further supported by our directors, Key Managerial Personnels and Senior management having diverse experiences in the field of transformer manufacturing, finance, regulatory compliance. The team is responsible for day-to-day operations and execution of the Companys business strategy, ensuring adherence to technical and commercial standards across functions. The combined expertise of our Promoter and senior management enables us to maintain operational discipline, respond to customer requirements, and pursue new opportunities in the power and energy sector.
Key Performance Indicators of our Company
(Rs. In Lakhs except percentages and ratios) |
|||
Key Financial Performance |
FY 2025-26 | FY 2024-25 | FY 2023-24 |
Revenue from operations (1) |
36310.82 | 32420.98 | 16094.61 |
EBITDA (2) |
4,671.90 | 2951.01 | 1019.37 |
EBITDA Margin (3) |
12.87% | 9.10% | 6.33% |
PAT (4) |
3360.48 | 2037.67 | 759.06 |
PAT Margin (5) |
9.25% | 6.28% | 4.72% |
RoE (%) (6) |
55.32% | 60.14% | 38.14% |
RoCE (%) (7) |
46.72% | 43.09% | 34.00% |
Notes:
(1
Revenue from operation means revenue from sales and other operating revenues<2) EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses - 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 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 which is defined as shareholders equity plus total borrowings {current & non-current}
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
For details in respect of "Statement of Significant Accounting Policies", please refer to Annexure IV of Restated Financial Statements beginning on page 164 of this Red Herring Prospectus.
Factors Affecting our Results of Operations
1. Changes in focus, laws and regulations or change in Government Policies towards Power & Distribution Industry;
2. Any change in the technology affecting transformer manufacturing;
3. Any adverse developments affecting our operations in the state, where our manufacturing facilities are located;
4. Loss of any of our top 10 customers;
5. Interruptions in the supply of raw materials;
6. Our ability to retain our key managements persons and other employees;
7. Our failure to keep pace with rapid changes in technology;
8. Our ability to make interest and principal payments on our existing debt obligations and satisfy the other covenants contained in our existing debt agreements;
9. Companys ability to successfully implement its growth strategy and expansion plans;
10. Inability to successfully obtain registrations in a timely manner or at all;
11. Occurrence of Environmental Problems & Uninsured Losses;
12. Conflicts of interest with affiliated companies, the promoter group and other related parties;
13. Any adverse legal proceedings initiated against our company or its promoters, directors and KMPs; and
14. Macroeconomic factors such as level of economic activity in the regions and cities in which we operate, general economic, business and political conditions in the industry, inflation, deflation, interest rate fluctuations and emergence of alternative destinations, impacting our growth.
Discussion on Result of Operations
The following discussion on results of operations should be read in conjunction with the Restated Consolidated Financial Statements for the years ended on March 31, 2026, March 31, 2025, and March 31, 2024.
For the year ended |
||||||
Particular |
31-Mar-26 | % of Total Income | 31-Mar-25 | % of Total Income | 31-Mar-24 | % of Total Income |
Revenue |
||||||
Revenue from operations |
36310.82 | 99.86 | 32420.98 | 99.82 | 16094.61 | 99.03 |
Other income |
51.81 | 0.14 | 57.05 | 0.18 | 157.84 | 0.97 |
Total income |
36362.63 | 100.00 | 32478.03 | 100.00 | 16252.45 | 100.00 |
Expenses |
||||||
Cost of Materials Consumed |
26776.98 | 73.64 | 26853.98 | 82.68 | 14258.81 | 87.73 |
Purchase of stock in trade |
2527.32 | 6.95 | - | - | - | - |
Changes in inventories of finished goods, work in process & traded goods |
-189.26 | -0.52 | 235.12 | 0.72 | -396.34 | -2.44 |
Employee benefits expense |
817.92 | 2.25 | 765.13 | 2.36 | 448.42 | 2.76 |
Finance costs |
105.54 | 0.29 | 164.45 | 0.51 | 172.19 | 1.06 |
Depreciation and amortization expense |
137.79 | 0.38 | 95.78 | 0.29 | 38.11 | 0.23 |
Other expenses |
1667.64 | 4.59 | 1588.91 | 4.89 | 691.11 | 4.25 |
Total expenses |
31843.92 | 87.57 | 29703.37 | 91.46 | 15212.3 | 93.60 |
Profit before Exceptional & Extra Ordinary Items & Tax |
4518.71 | 12.43 | 2774.66 | 8.54 | 1040.16 | 6.40 |
Exceptional item |
||||||
Profit before Extra-Ordinary items & tax |
4518.71 | 12.43 | 2774.66 | 8.54 | 1040.16 | 6.40 |
Extraordinary items |
||||||
Profit before tax |
4518.71 | 12.43 | 2774.66 | 8.54 | 1040.16 | 6.40 |
Tax expense |
||||||
Current tax |
1158.01 | 3.18 | 747.59 | 2.30 | 273.76 | 1.68 |
Deferred tax (income)/expense |
0.22 | 0.00 | -10.59 | -0.03 | 7.34 | 0.05 |
Profit After Tax |
3360.48 | 9.24 | 2037.67 | 6.27 | 759.06 | 4.67 |
Total Income
Total income includes Revenue from operations of the Company and other income.
Revenue from Operations
Revenue from operations of the Company primarily arises from the sale of transformers and related products, which are recognised upon transfer of significant risks and rewards of ownership to the customers.
Other Income
Other income includes interest on FDR, interest on income tax refund, debtors written off recovered, accident insurance claim, liability written off written back, gain on investment, interest on delayed payment received, gain on sale of fixed assets, and remeasurement gain on actuarial valuation.
Cost of Material Consumed
This head represents amount incurred towards raw material consumed including the costs of lamination, copper, oil, and other products, and comprises of opening stock at the beginning of the financial year, purchases during the year and less closing stock at the end of the financial year / period.
Employee Benefits Expense
Employee benefit includes Salary, Wages, Labour Charges & Allowances, Leave Encashment, Directors Remuneration, Employee Training Expenses, Bonus, Employers contribution to provident & other funds, Staff Welfare Expenses, Expenses related to post employment defined benefit plans, medical expenses.
Finance Costs
Finance cost includes Bank Charges, Interest expenses on term loan, Interest expenses on unsecured loan, Interest expenses on working capital limit, Interest expenses on letter of credit (LC) and bill discounting, Interest expenses on delay payment of taxes.
Depreciation and Amortization Expense
Depreciation and Amortization expense represents depreciation on Property, Plant and Equipment.
Other Expenses
Other expense includes major items such as freight outward, commission, power & fuel expenses, legal & professional fees, insurance, loading & unloading charges, job work charges, repair & maintenance to building and machinery, fees & taxes, interest on late payment to MSME vendors, and payment to auditors, delayed delivery charges.
Financial Performance Highlights for the Year Ended on March 31, 2026
(Based on Restated Consolidated Financial Statements)
Total Income
Total income for the year ended March 31, 2026 stood at Rs.36,362.63 lakhs, comprising of revenue from operations of Rs.36,310.82 lakhs which includes sale of transformers, scrap sale, traded goods and job work charges and other income of Rs.51.81 lakhs which includes interest on FDR and other interest.
Revenue from Operations
During FY 2025-26, revenue from operations was Rs.36,310.82 lakhs. The revenue primarily comprises the sale of the Companys products which includes sale of products like transformers, scrap sale and traded goods and services like job work charges. Revenue from operations represented 99.86% of the total income of the Company.
Other Income
Other income for FY 2025-26 stood at Rs.51.81 lakhs, representing 0.14% of the total income. Other income primarily comprises interest income on bank deposits, interest on income tax refunds, and other miscellaneous non-operating income.
Cost of Materials Consumed
The Company incurred Rs.26,776.98 lakhs towards cost of materials consumed during the year, representing 73.64% of the total income. This primarily includes the cost of raw materials consumed in the manufacturing process.
Purchase of Stock-in-Trade
Purchase of stock-in-trade amounted to Rs.2,527.32 lakhs, representing 6.95% of the total income. This comprises the purchase of traded goods required for business operations.
Employee Benefits Expense
Employee benefits expense for FY 2025-26 amounted to Rs.817.92 lakhs, representing 2.25% of the total income. This includes salary, wages, labour charges & allowances, leave encashment, directors remuneration, employee training expense, bonus, employers contribution to provident & other funds, staff welfare expense, post-employment defined benefit plans, medical expenses and other employee-related benefits.
Finance Costs
Finance costs for the year were Rs.105.54 lakhs, representing 0.29% of the total income. These primarily comprise interest expenses on borrowings and other finance-related charges.
Depreciation and Amortisation Expense
Depreciation and amortisation expense for FY 2025-26 was Rs.137.79 lakhs, representing 0.38% of the total income.
Other Expenses
Other expenses stood at Rs.1,667.64 lakhs during FY 2025-26, representing 4.59% of the total income. Major components include power & fuel expenses, testing & inspection charges, warranty, discount & settlement, freight outward, insurance, legal & professional fees, delayed delivery charges, commission and operational expenses.
Restated Profit Before Tax
The Company reported a restated profit before tax of Rs.4,518.71 lakhs for FY 2025-26, representing 12.43% of the total income. Restated Profit After Tax
The Company reported a restated profit after tax of Rs.3,360.48 lakhs for FY 2025-26, representing 9.24% of the total income. Comparison of Financial Year 2026 with Financial Year 2025 (Based on Restated Financial Consolidated Statements)
Total Income
Total income increased from Rs.32,478.03 lakhs in FY 2025 to Rs.36,362.63 lakhs in FY 2026, representing an increase of Rs.3,884.60 lakhs
i.e. 11.96%. The increase was primarily attributable to higher revenue from operations which increased from Rs.32,420.98 lakhs in FY 2025 to Rs.36,310.82 lakhs in FY 2026. These revenue includes revenue from sale of transformers and traded goods. Revenue from the sale of transformers increased from Rs.32,252.65 lakhs in FY 2025 to Rs.33,651.74 lakhs in FY 2026, reflecting an increase of 4.34%. scrape sales decreased from Rs.160.52 lakhs in FY 2025 to Rs.88.03 lakhs in FY 2026, however, the company has earned a revenue from traded goods amounted to Rs.2,537.93 lakhs in FY 2026 which was Nil in FY 2025. Revenue from operations continued to constitute the major portion of the Companys total income, accounting for 99.86% of total income in FY 2026 as compared to 99.82% in FY 2025.
Revenue from Operations
Revenue from operations increased from Rs.32,420.98 lakhs in FY 2025 to Rs.36,310.82 lakhs in FY 2026, reflecting an increase of Rs.3,889.84 lakhs i.e. 12.00%. These revenue includes revenue from sale of transformers and traded goods. Revenue from the sale of transformers increased from Rs.32,252.65 lakhs in FY 2025 to Rs.33,651.74 lakhs in FY 2026, reflecting an increase of 4.34%. scrape sales decreased from Rs.160.52 lakhs in FY 2025 to Rs.88.03 lakhs in FY 2026, however, the company has earned a revenue from traded goods amounted to Rs.2,537.93 lakhs in FY 2026 which was Nil in FY 2025. Also, Income from job work charges increased from Rs.7.81 lakhs in FY 2025 to Rs.33.12 lakhs in FY 2026, representing an increase of Rs.25.31 lakhs i.e. 324.07%.
Other Income
Other income decreased from Rs.57.05 lakhs in FY 2025 to Rs.51.81 lakhs in FY 2026, representing a decline of Rs.5.24 lakhs i.e. 9.18%. The decrease was primarily attributable to lower interest income and other miscellaneous non-operating income during the year. Other income constituted 0.14% of total income in FY 2026 as compared to 0.18% in FY 2025.
Cost of Materials Consumed
Cost of materials consumed marginally decreased from Rs.26,853.98 lakhs in FY 2025 to Rs.26,776.98 lakhs in FY 2026, representing a decrease of Rs.77.00 lakhs i.e. 0.29%. Although revenue increased during the year, the cost of materials consumed remained substantially at the previous years level. This was primarily attributable to changes in the product mix, efficient material utilisation and the impact of inventory movements during the year. Consequently, the cost of materials consumed as a percentage of total income decreased from 82.68% in FY 2025 to 73.64% in FY 2026.
Purchase of Stock-in-Trade
Purchase of stock-in-trade amounted to Rs.2,527.32 lakhs in FY 2026 as compared to Nil in FY 2025. The expenditure was incurred towards procurement of traded goods to meet customer requirements and reflects the commencement or increase of trading activities during the year. Purchase of stock-in-trade represented 6.95% of total income in FY 2026.
Employee Benefits Expense
Employee benefits expense increased from Rs.765.13 lakhs in FY 2025 to Rs.817.92 lakhs in FY 2026, representing an increase of 6.90%. The increase was primarily attributable to increase in Directors Remuneration from Rs.98.00 lakhs in FY 2025 to Rs.198.00 lakhs in FY2026 and Bonus from Rs.4.56 lakhs in FY 2025 to Rs.14.42 lakhs in FY2026. However, the Salary, Wages, Labour Charges & Allowances reduced to Rs.562.78 lakhs in FY2026 from Rs.618.28 lakhs in FY2025. Employee benefits expense represented 2.25% of total income in FY 2026 as compared to 2.36% in FY 2025.
Finance Costs
Finance costs decreased from Rs.164.45 lakhs in FY 2025 to Rs.105.54 lakhs in FY 2026, representing a reduction of Rs.58.91 lakhs i.e. 35.82%. The decrease was primarily attributable to lower utilisation of working capital borrowings and reduced interest costs during the year. The total borrowings of the Company decreased from Rs.2350.87 lakhs in FY2025 to Rs.2073.64 lakhs in FY2026. Finance costs represented 0.29% of total income in FY 2026 as compared to 0.51% in FY 2025.
Depreciation and Amortisation Expense
Depreciation and amortisation expense increased from Rs.95.78 lakhs in FY 2025 to Rs.137.79 lakhs in FY 2026, representing an increase of 43.86%. The increase was mainly attributable to additions to property, plant and equipment during the year. The addition to the fixed assets during the period was around Rs.820.57 lakhs excluding land. Depreciation and amortisation expense represented 0.38% of total income in FY 2026 as against 0.29% in FY 2025.
Other Expenses
Other expenses increased from Rs.1,588.91 lakhs in FY 2025 to Rs.1,667.64 lakhs in FY 2026, representing an increase of Rs.78.73 lakhs (4.96%). The increase was primarily attributable to higher operational activities during the year. Major components of other expenses include power & fuel expenses, testing & inspection charges, warranty, discount & settlement, freight outward, insurance, legal & professional fees, delayed delivery charges, commission and other operational expenses. As a percentage of total income, other expenses decreased from 4.89% in FY 2025 to 4.59% in FY 2026, indicating improved operating efficiency.
Profit Before Tax (PBT)
Profit before tax increased from Rs.2,774.66 lakhs in FY 2025 to Rs.4,518.71 lakhs in FY 2026, representing an increase of Rs.1,744.05 lakhs i.e. 62.86%. The increase was primarily attributable to higher revenue from operations which increased from Rs.32,420.98 lakhs in FY
2025 to Rs.36,310.82 lakhs in FY 2026, reflecting an increase of Rs.3,889.84 lakhs i.e. 12.00%. As compared with revenue, stable material costs, lower finance costs resulting in an improvement in operating margins. The total expenses increased from Rs.29,703.37 lakhs in FY 2025 to Rs.31,843.92 lakhs in FY 2026, representing an increase of 7.21% which lead to improvement in the margins.
Tax Expense
Current tax expense increased from Rs.747.59 lakhs in FY 2025 to Rs.1,158.01 lakhs in FY 2026, reflecting an increase of Rs.410.42 lakhs (54.90%), primarily due to higher taxable profits during the year. Deferred tax expense amounted to Rs.0.22 lakhs in FY 2026 as compared to a deferred tax credit of Rs.10.59 lakhs in FY 2025.
Profit After Tax (PAT)
Profit after tax increased from Rs.2,037.67 lakhs in FY 2025 to Rs.3,360.48 lakhs in FY 2026, representing an increase of Rs.1,322.81 lakhs i.e. 64.92%. The increase was primarily attributable to higher revenue from operations which increased from Rs.32,420.98 lakhs in FY 2025 to Rs.36,310.82 lakhs in FY 2026, reflecting an increase of Rs.3,889.84 lakhs i.e. 12.00%. As compared with revenue, stable material costs, lower finance costs resulting in an improvement in operating margins. The total expenses increased from Rs.29,703.37 lakhs in FY 2025 to Rs.31,843.92 lakhs in FY 2026, representing an increase of 7.21% which lead to improvement in the margins.
Comparison of Financial Year 2025 with Financial Year 2024 (Based on Restated Financial Consolidated Statements)
Revenue from Operations
Revenue from Operations increased significantly from Rs.16,094.61 lakhs in FY 2024 to Rs.32,420.98 lakhs in FY 2025, reflecting a rise of 101.44%. The increase was primarily on account of higher sales volumes of transformers. Another reason is due to New orders received by company during FY 2025.
Other Income
Other income reduced from Rs.157.84 lakhs in FY 2024 to Rs.57.05 lakhs in FY 2025, a decline of Rs.100.79 lakhs (63.86%). This reduction was mainly due to an accident insurance claim received amounting to Rs.78.47 in FY 2024. Other reason includes Remeasurement gain on actuarial valuation amounting to Rs.15.78 Lakhs in FY 2024 which is Nil in FY 2025.
Cost of Materials Consumed
Cost of Materials Consumed rose from Rs.14,258.81 lakhs in FY 2024 to Rs.26,853.98 lakhs in FY 2025, an increase of Rs.12,595.17 lakhs (88.34%). This was directly in line with the growth in production and sales volumes.
Employee Benefits Expense
Employee benefits expense increased from Rs.448.42 lakhs in FY 2024 to Rs.765.13 lakhs in FY 2025, a rise of Rs.316.71 lakhs (70.65%). Also, remuneration to directors Rs.93.00 lakhs in FY 2025 and corresponding amount in FY 2024 Rs.46.20 lakhs also staff welfare expense increased from 9.73 Lakhs to 19.00 Lakhs.
Finance Costs
Finance costs marginally decreased from Rs.172.19 lakhs in FY 2024 to Rs.164.45 lakhs in FY 2025, showing a reduction of Rs.7.74 lakhs (4.49%).
Depreciation and Amortisation
Depreciation increased sharply from Rs.38.11 lakhs in FY 2024 to Rs.95.78 lakhs in FY 2025, higher by Rs.57.67 lakhs 151.34%. This is attributable to significant additions in Property, Plant & Equipment, particularly plant & machinery amounting to 38.30 Lakhs and Vehicle purchased during the year amounting to 45 lakhs.
Other Expenses
Other expenses more than doubled from Rs.691.11 lakhs in FY 2024 to Rs.1,588.91 lakhs in FY 2025, an increase of Rs.897.80 lakhs (129.90%). The reason for this increase was primarily attributable to the growth in business operations. The major contributors to this increase were freight outward Rs.421.27 lakhs vs. Rs.247.28 lakhs owing to higher dispatches, late delivery charges Rs.320.17 lakhs in FY
2025 the corresponding amount in FY Rs.16.49 lakhs due to penalties linked with delayed delivery, commission expenses Rs.230.29 lakhs in FY 230.29 Lakhs in FY 2025 and Rs.15.07 lakhs in FY 2024 on account of increased sales volumes. Additionally, insurance costs rose to Rs.57.18 lakhs from Rs.10.18 lakhs reflecting enhanced coverage for expanded assets and operations, while loading & unloading charges increased to Rs.37.78 lakhs in FY 2025 from Rs.15.34 lakhs in FY 2024.
Profit Before Tax (PBT)
PBT improved from Rs.1,040.16 lakhs in FY 2024 to Rs.2,774.66 lakhs in FY 2025, higher by Rs.1,734.50 lakhs (166.75%). The growth was mainly driven by strong top-line expansion.
Profit After Tax (PAT)
PAT rose from Rs.759.06 lakhs in FY 2024 to Rs.2,037.67 lakhs in FY 2025, an increase of Rs.1,278.61 lakhs (168.45%). The increase in PAT reflects strong operational performance and effective financial management. The increase was primarily attributable to higher revenue from operations which increased from Rs.16094.61 lakhs in FY 2024 to Rs.32420.98 lakhs in FY 2025, reflecting an increase of Rs.16326.37 lakhs i.e. 101.44%. As compared with revenue, material costs increased by 88.33%, employees cost increased by 70.63%, lower finance costs, depreciation and amortization increased by 151.33%. Thus, higher increase in revenue as compared with corresponding expenses resulting in an improvement in operating margins. The PAT margins improved from 4.67% of the total income in the FY2024 to 6.27% of the Total income in the FY2025.
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 trend on account of our business activity. Except as disclosed in this Red Herring Prospectus, there are no unusual or infrequent events or transactions in our Company.
2. Significant economic changes that materially affected or are likely to affect income from continuing operations.
There are no significant economic changes that may materially affect or likely to affect income 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 21 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 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 21, 121 and 216 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 business activity primarily falls within a single business and geographical segment, other than as disclosed in "Restated Financial Statements" on page 164 we do not follow any other segment reporting
6. Status of any publicly announced New Products or Business Segment
Except as disclosed in the Chapter "Our Business", our Company has not announced any new product or service.
7. Seasonality of business
Our business and revenue from operations are subject to seasonal variations and cyclicality. Our sales and results of operations may vary by fiscal quarter to other fiscal quarter. For further information, see "Industry Overview" and "Our Business" on pages 108 and 121, respectively of this Red Herring Prospectus.
8. Dependence on single or few customers
Our business is dependent on limited number of customer such as state electricity distribution boards. For details please refer to "Risk Factor" on page 21.
9. Competitive conditions
Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on pages 108 and 121, respectively of this Red Herring Prospectus.
10. Details of material developments after the date of last balance sheet i.e. March 31, 2026
There is no material development that has taken effect after the date of last Balance sheet i.e. March 31, 2026.
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IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, IA SEBI Regn. No: INA000000623, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
ARN NO : 47791 (Date of initial registration – 17/02/2007; Current validity of ARN – 08/02/2027), PFRDA Reg. No. PoP 20092018, IRDAI Corporate Agent (Composite) : CA1099
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
