The following discussion is intended to convey managements perspective on our financial condition and results of operations for the Fiscals 2026, 2025 and 2024. You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our Restated Financial Information as of and for Fiscals 2026, 2025 and 2024, including the related annexures.
Unless otherwise indicated or context otherwise requires, the financial information for Fiscals 2026, 2025 and 2024, included herein is derived from the Restated Financial Information, included in this Red Herring Prospectus. For further information, see "Restated Financial Information" and "Summary of Financial Information" on pages 158 and 44.
The following discussion is intended to convey managements perspective on our financial condition and results of operations for the Fiscals 2026, 2025 and 2024. You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our Restated Financial Information as of and for Fiscals 2026, 2025 and 2024, including the related annexures.
Unless otherwise indicated or context otherwise requires, the financial information for Fiscals 2026, 2025 and 2024, included herein is derived from the Restated Financial Information, included in this Red Herring Prospectus. For further information, see "Restated Financial Information" and "Summary of Financial Information" on pages 158 and 44.
Our Fiscal year ends on March 31 of each year. Accordingly, all references to a particular Fiscal are to the 12-month period ended March 31 of that year.
This discussion contains forward-looking statements that involve risks and uncertainties and reflects our current view with respect to future events and financial performance. Actual results may differ from those anticipated in these forward-looking statements as a result of factors such as those set forth under "Forward Looking Statements" and "Risk Factors" on pages 17 and 18, respectively
Industry Overview
The Indian Rotary Nickel Screen industry market is projected to expand at a CAGR of 10.8% in terms of Volume and 12.6% in terms of Value, during the 2020-30 period. A number of important drivers behind this growth include rising demand from the textile printing industry, technology innovation in the making of screens, and rising demand for high-precision printing solutions. The sales volume of Rotary Nickel Screens has shown a steady upward trend in recent years. However, as a product with raw materials constituting a significant portion of its cost structure, its value is highly sensitive to fluctuations in raw material prices. The sharp ~40% increase in nickel prices in 2022 drove a rapid surge in market value. Conversely, the subsequent decline in nickel prices in 2023 and 2024 led to a moderation in value. (Source: CareEdge Report)
Business Overview
Incorporated in 2013, our Company is engaged in the manufacturing of rotary nickel screens, which are used in rotary screen-printing machines, primarily by the textile manufacturers for continuous printing on fabrics. Rotary nickel screens are cylindrical, perforated metal screens that act as stencils in rotary screen-printing machines, through which printing paste is applied to imprint patterns and designs on fabrics. These screens are manufactured in various mesh counts, thicknesses, and repeat sizes to suit varied printing requirements, ranging from fine detailing to background coverage, and represent a recurring consumable for textile manufacturers, as they are replaced periodically depending on usage and production intensity.
Key Performance Indicators
Our key performance indicators for the last three Fiscals are as follows:
(Rs. In Lakhs except percentages and ratios)
| Key Financial Performance | FY 2025-26 | FY 2024-25 | FY 2023-24 |
| Revenue from operations (1) | 5,072.73 | 4,534.12 | 3,570.53 |
| EBITDA (2) | 1,000.32 | 812.71 | 423.91 |
| EBITDA Margin (3) | 19.72% | 17.92% | 11.87% |
| PAT (4) | 648.33 | 468.53 | 150.36 |
| PAT Margin (5) | 12.78% | 10.33% | 4.21% |
| RoE (%) (6) | 49.37% | 62.07% | 33.76% |
| RoCE (%) (7) | 39.33% | 42.21% | 22.76% |
| Total Customers (8) | 210 | 228 | 205 |
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. |
| 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. |
| Total Customers | The total number of customers has been determined from the sales register and includes both customers to whom sales have been made as well from whom transport income has been generated |
SIGNIFICANT ACCOUNTING POLICIES
A. Basis of preparation of Financial Statements:
The Restated Statement of Assets and Liabilities of the Company as at March 31, 2026, March 31, 2025, and March 31, 2024, the Restated Statements of Profit and Loss for the year ended March 31, 2026, March 31, 2025, and March 31, 2024, the Restated Cash Flow Statement for the year ended March 31, 2026, March 31, 2025, and March 31, 2024, the Summary Statement of Significant Accounting Policies, the Notes and Annexures as forming part of these Restated Financial Statements (collectively, the "Restated Financial Information") has been extracted by the management from the Audited Financial Statements of the Company.
The financial statements of the company have been prepared and presented in accordance with the Generally Accepted Accounting Principles (GAAP). GAAP comprises the Accounting Standards notified u/s 133 read with Section 469 of the Companies Act, 2013. The accounting policies have been framed, keeping in view the fundamental accounting assumptions of Going Concern, Consistency and Accrual, as also basic considerations of Prudence, Substance over form, and Materiality. These have been applied consistently, except where a newly issued accounting standard is initially adopted or a revision in the existing accounting standards require a revision in the accounting policy so far in use. The need for such a revision is evaluated on an ongoing basis.
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 the Companys operations and the time involved between the acquisition of goods/inventory and their realization into 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
1 The preparation of financial statements required the management to make estimates and assumptions that affect the reported balance of assets and liabilities, revenues and expenses including of warranty claims and disclosures relating to contingent liabilities. The Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Future results could differ from these estimates. Any revision of accounting estimates is recognized prospectively in the current and future periods. Significant estimates used by the management in the preparation of these financial statements include provision for employee benefits, estimates of the economic useful life of plant and equipment, provision for expenses, etc.
C. 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.
Sales of services is recognized as and when the services are rendered and the collectability 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 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 are ready for use, as intended by the management;
b) Subsequent expenditures relating to Property, Plant and Equipment 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 is being calculated using the Written Down Value (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.
f) Depreciation methods, useful lives, and residual values are reviewed periodically, including at each financial year end;
ii. Intangible assets:
Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation and Impairment. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized. Amortisation on Intangible assets is calculated on Written down value method.
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 is valued at cost or net realizable value whichever is lower. 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 are valued cost or net realizable value whichever is lower.
Net realizable 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 noncash 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 cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of borrowings. Borrowing costs directly attributable to the acquisition, construction or production of an qualifying asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.
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
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.
Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.
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
Investments, 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 long-term 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.
Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary nature in value of investment."
13 Government Grants and Subsidies
Government grants and subsidies are recognized 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 recognized 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 the lease rentals are recognized in profit & loss account as per lease terms.
17 Segment Reporting
The Company operates in a single business segment, i.e., Rotary Nickel Screen, and accordingly, no separate segment reporting is required.
18 Employee Benefits
Defined Contribution:
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.
Defined Benefits:
Leve balances are not carried forward and are settled in the same year. Accordingly, there is no outstanding obligation for leave encashment as at the reporting date.
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 end. The Company has an unfunded gratuity plan. The Company has adopted the Accounting Standard 15 (revised 2005) on Employee Benefits during the restated financials period. The disclosure as envisaged under the Accounting Standard is provided hereunder:
(In Lakhs)
| Details of Gratuity Expenses | 2025-26 | 2024-25 | 2023-24 |
| Profit and loss account for the period | |||
| Current service cost | 6.87 | 5.69 | 4.59 |
| Interest on obligation | 2.11 | 1.62 | 1.21 |
| Expected return on plan assets | - | - | - |
| Net actuarial loss/(gain) | 5.01 | 2.34 | 0.31 |
| Recognized Past Service Cost-Vested | - | - | - |
| Loss (gain) on curtailments | - | - | - |
| Total included in Employee Benefit Expense | 13.99 | 9.65 | 6.11 |
| prior year charge | - | - | - |
| Total Charge to P&L | 13.99 | 9.65 | 6.11 |
| Reconciliation of defined benefit obligation | |||
| Opening Defined Benefit Obligation | 31.91 | 22.57 | 16.46 |
| Transfer in/(out) obligation | - | - | - |
| Current service cost | 6.87 | 5.69 | 4.59 |
| Interest cost | 2.11 | 1.62 | 1.21 |
| Actuarial loss (gain) | 5.01 | 2.34 | 0.31 |
| Past service cost | - | - | - |
| Benefits paid | - | (0.31) | - |
Prior year charge |
- |
- |
- |
Closing Defined Benefit Obligation |
45.90 |
31.91 |
22.57 |
Details of Gratuity Expenses
Reconciliation of net defined benefit liability
| Net opening provision in books of accounts | 31.91 | 22.57 | 16.46 |
| Transfer in/(out) | - | - | - |
| Transfer (to)/from plan assets | - | - | - |
| Employee Benefit Expense | 13.99 | 9.65 | 6.11 |
| Benefits paid by the Company | - | (0.31) | - |
| Contributions to plan assets | - | - | - |
Closing provision in books of accounts |
45.90 |
31.91 |
22.57 |
Bifurcation of liability
| Current | 5.90 | 3.73 | 2.41 |
| Non-Current Liability | 40.00 | 28.18 | 20.16 |
Net Liability |
45.90 |
31.91 |
22.57 |
Principle actuarial assumptions
| Expected expenses for next year | 12.50 | 8.98 | 7.31 |
| Discount Rate | 6.61% | 6.61% | 7.19% |
| Expected Return on Plan Assets | - | - | - |
| Rate of increase in salary | 10.00% | 10.00% | 10.00% |
| Employee turnover | 20.00% | 20.00% | 20.00% |
| Mortality rate | IALM (2012-2014) | IALM (2012-2014) | IALM (2012-2014) |
19 Extraordinary items, Exceptional items, Prior period items & Changes in Accounting policies
a) Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such transactions/events is made in the financial statements.
Similarly, any external event beyond the control of the Company, significantly impacting income or expense, is also treated as extraordinary item and disclosed as such.
b) On certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the Company, is such that its disclosure improves an understanding of the performance of the Company. Such income or expense is classified as an exceptional item and accordingly disclosed in the notes to accounts.
c) There were no changes in accounting policies requiring adjustments in the Restated Financial Statements, except for the change in the Companys liability for benefits in accordance with AS-15 (Revised). The Company has accounted for retirement benefit based on an actuarial valuation certificate and recognized deferred tax as per the requirements of AS-22.
(Rs in Lakhs except percentage)
| Sr. No. Particulars | For the year ended March 31, 2026 | % | 2025 | % | 2024 | % |
A Income: |
||||||
| Revenue From Operations | 5,072.73 | 98.84% | 4,534.12 | 99.37% | 3,570.53 | 99.61% |
| Other Income | 59.28 | 1.16% | 28.92 | 0.63% | 14.01 | 0.39% |
Total Income |
5,132.01 |
100% |
4,563.04 |
100% |
3,584.54 |
100% |
B Expenses: |
||||||
| Cost of Material Consumed | 2,388.42 | 46.54% | 2,386.36 | 52.30% | 2,436.85 | 67.98% |
| Purchases of Stock in Trade | 825.60 | 16.09% | 504.96 | 11.07% | 40.18 | 1.12% |
| Changes in Inventories | (146.91) | -2.86% | (41.98) | -0.92% | (96.77) | -2.70% |
| Employee Benefit Expenses | 393.37 | 7.67% | 354.17 | 7.76% | 292.38 | 8.16% |
| Finance Costs | 73.06 | 1.42% | 90.88 | 1.99% | 128.74 | 3.59% |
| Depreciation and Amortization Expenses | 123.95 | 2.42% | 127.66 | 2.80% | 115.09 | 3.21% |
| Other Expenses | 605.89 | 11.81% | 514.43 | 11.27% | 466.92 | 13.03% |
Total Expenses |
4,263.37 |
83.07% |
3,936.47 |
86.27% |
3,383.40 |
94.39% |
C Profit/(Loss) Before Exceptional, Extraordinary Items & Tax |
868.63 |
16.93% |
626.57 |
13.73% |
201.14 |
5.61% |
| Less: Exceptional/Extraordinary Items | - | - | - | - | - | - |
D Profit/(Loss) Before Tax (A-B-C) |
868.63 |
16.93% |
626.57 |
13.73% |
201.14 |
5.61% |
E Tax expense: |
||||||
| Tax Expenses for Current Year | 226.54 | 4.41% | 163.84 | 3.59% | 54.59 | 1.52% |
| Deferred Tax Expense/(Income) | (6.24) | -0.12% | (5.80) | -0.13% | (3.81) | -0.11% |
F Profit/(Loss) after Tax for the Period (D-E) |
648.33 |
12.63% |
468.53 |
10.27% |
150.36 |
4.19% |
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 Manufactured Nickel Screen and trading of Nickel Cathodes.
The following table sets forth the bifurcation of revenue (product-wise) for the fiscal years 2026, 2025 and 2024.
(Rs in Lakhs)
| Particulars | FY 25-26 Amount | % of Total | FY 24-25 Amount | % of Total | FY 23-24 Amount | % of Total |
Sales of Products |
||||||
| Penta | 1,951.65 | 38.54 | 1,777.87 | 39.28 | 1,505.91 | 42.24 |
| Standard Screen | 1,109.04 | 21.90 | 1,025.90 | 22.67 | 1,125.17 | 31.56 |
| Delta | 818.27 | 16.16 | 947.15 | 20.93 | 747.90 | 20.98 |
Trading Goods |
558.33 | 6.48 | 278.83 | 5.28 | 119.93 | 3.93 |
| Nickel Cadmium | 85.50 | 16.91 | 536.37 | 11.85 | 45.96 | 1.29 |
Total Sale of Products |
5,043.84 |
100.00 |
4,726.12 |
100.00 |
2,564.87 |
100.00 |
Other Income:
Total Expenses
Cost of material consumed:
Purchase of stock in trade:
Change in inventories of finished goods:
Employee benefits expense:
Finance Costs:
Depreciation and Amortization Expenses:
Other Expenses:
FINANCIAL PERFORMANCE HIGHLIGHTS FOR THE FINANCIAL YEAR 2025-26:
Total Income:
Revenue from Operation
Other Income:
Total Expenses:
Total expenses consist of operating cost like Cost of Material Consumed, Purchases of Stock in Trade, Change in Inventories of Finished Goods, Employee benefit expenses, Finance costs, Depreciation and Amortization Expenses and Other Expenses. During the year ended March 31, 2026 the total expenses of our Company stood at Rs 4,263.37 Lakhs.
Cost of Material Consumed:
Cost of Material Consumed: During the year ended March 31, 2026 the Cost of Material Consumed of our Company stood at Rs. 2,388.42 Lakhs.
Purchase of Stock in Trade:
Purchase of Stock in Trade: During the year ended March 31, 2026 the Purchase of Stock in Trade stood at Rs. 825.60 Lakhs.
Change in inventories of Finished Goods:
Change in inventories of Finished Goods: During the year ended March 31, 2026 the Change in inventories of Finished Goods stood at Rs. (146.91) Lakhs.
Employee benefits expense:
Employee benefits expense: During the year ended March 31, 2026 the employee benefit expenses of our Company stood at Rs. 393.37 Lakhs. The components of the employee benefit expenses are Salaries & Bonus, Wages, Leave Encashment, Director Remuneration, Contribution to PF, ESIC & Other Funds, Staff Welfare expenses and Gratuity expense.
Finance Costs:
Finance Costs: During the year ended March 31, 2026 the finance cost expenses of our Company stood at Rs. 73.06 Lakhs. Our finance cost includes Interest on Loan & Loan Processing Charges and Bank charges.
Depreciation and Amortization Expenses:
Depreciation and Amortization Expenses: During the year ended March 31, 2026 the Depreciation charges of our Company stood at Rs. 123.95 Lakhs.
Other Expenses:
Other Expenses: Other expenses for the year ended March 31, 2026, were Rs. 605.89 Lakhs, comprising mainly manufacturing expenses, administrative and operating expenses, repairs and maintenance, selling and distribution expenses and other operational expenses.
Restated Profit before tax:
Restated Profit before tax: The Company reported Profit before tax for year ended March 31, 2026 of Rs. 868.63 Lakhs.
Restated Profit after tax:
Restated Profit after tax: The Company reported Profit after tax for year ended March 31, 2026 of Rs. 648.33 Lakhs.
FINANCIAL YEAR ENDED 31st MARCH 2026 COMPARED TO FINANCIAL YEAR ENDED 31st MARCH 2025
Total Income:
Total Income: The total income for FY 2026 stood at Rs. 5,132.01 Lakhs, compared to Rs. 4,563.04 Lakhs in FY 2025, reflecting a growth of 12.47%. This increase was primarily driven by higher Revenue from Operations and Other Income.
Revenue from Operations:
Revenue from Operations: In FY 2026, the revenue from operations was Rs. 5,072.73 Lakhs, showing a significant increase from Rs. 4,534.12 Lakhs in FY 2025, reflecting an increase of 11.88%. This increase was primarily driven by manufacturing of higher sales of Nickel Screens and trading in Nickel Cathodes, which contributed Rs. 5,063.84 lakhs (99.82% of total operating revenue) in FY 2026, compared to Rs. 4,526.12 lakhs (99.82% of total operating revenue) in FY 2025. The revenue from manufacturing rose by Rs. 217.59 lakhs i.e. 5.45%, while trading sales of Nickel Cathodes saw a substantial increase of Rs. 320.14 lakhs i.e. 59.69%. Additionally, other operating revenue increased by 0.88 lakhs, further contributing to the overall increase.
Other Income:
Other Income: Other income for FY 2026 stood at Rs. 59.28 lakhs, compared to Rs. 28.92 lakhs in FY 2025, marking an increase of 104.97%. The increase was primarily due to Government Interest Subsidy of Rs. 26.27 lakhs in FY 2026, as compared to Nil in FY 2025, along with an increase in Interest on Security Deposit from Rs. 0.15 lakhs in FY 2025 to Rs. 4.33 lakhs in FY 2026 and Electricity Subsidy from Rs. 5.74 lakhs in FY 2025 to Rs. 6.51 lakhs in FY 2026. The increase was also attributable to Export 0.17 lks and Foreign Exchange Gain of Rs. 0.48 lks recognized during FY 2026. Further, Renting of Commercial Vehicle increased marginally from Rs. 6.86 lks in FY 2025 to Rs. 7.52 lks in FY 2026.
Total Expenses:
Total expenses for FY 2026 were Rs. 4,263.37 Lakhs, compared to Rs. 3,936.47 Lakhs in FY 2025, reflecting an increase of 8.30%. This increase was due to increase in business operations of the Company resulting into higher purchase of stock in trade, employee benefits, depreciation and other operational expenses.
Cost of Material Consumed:
Cost of Material Consumed: The cost of material consumed increased to Rs. 2,388.42 Lakhs in FY 2026 from Rs. 2,386.36 Lakhs in FY 2025, representing a negligible rise of 0.09% representing a controlled cost of production as compared to FY 2025, hence resulting a rise in margins of the company.
Purchases of Stock in Trade:
Purchases of Stock in Trade: The purchases of stock in trade increased to Rs. 825.60 Lakhs in FY 2026 from Rs. 504.96 Lakhs in FY 2025, representing increase of 63.50% primarily due to increased trading activity in Nickel Cathodes.
Change in inventories:
Change in inventories: Our Company has incurred Rs. (146.91) Lakhs as Change in inventories of finished goods during the financial year 2025-26 as compared to Rs. (41.98) Lakhs in the financial year 2024-25, primarily due to rise in the closing stock of Rotary Nickel Screen.
Employee Benefits Expense:
Employee Benefits Expense: Our Company has incurred Rs. 393.37 lakhs as Employee Benefits Expense in FY 2025-26, reflecting an increase of Rs. 39.20 lakhs from Rs. 354.17 lakhs in FY 2024-25. This increase was primarily due to Salaries and Bonus rose from Rs. 72.68 lakhs to Rs. 74.25 lakhs, while Director Remuneration increased from Rs. 65.40 lakhs to Rs. 82.80 lakhs. Wages increased from Rs. 136.55 lakhs to Rs. 152.98 lakhs and Leave Encashment increased from Rs. 7.48 lakhs to Rs. 9.04 lakhs. There was also an increase in Contribution to PF, ESIC & Other Funds, which increased from Rs. 21.73 lakhs to Rs. 23.90 lakhs. Additionally, Staff Welfare Expenses decreased from Rs. 40.68 lakhs to Rs. 36.41 lakhs, and Gratuity provisions rose from Rs. 9.65 lakhs to Rs. 13.99 lakhs.
Finance Cost:
Finance Cost: Our Company incurred Rs. 73.06 lakhs as finance cost during the financial year 2025-26 as compared to Rs. 90.88 lakhs during the financial year 2024-25, reflecting a decrease of Rs. 17.82 lakhs, representing a decrease of 19.61%. The decrease was primarily attributable to a reduction in interest expenses on borrowings during FY 2025-26.
Depreciation and Amortization Expenses:
Depreciation and Amortization Expenses: Depreciation for the financial year 2025-26 stood at Rs. 123.95 Lakhs as against Rs. 127.66 Lakhs during the financial year 2024-25. The decrease in depreciation was around 2.91%, which was primarily due to deletion of Plant & Machinery in the FY 2026.
Other Expenses:
Other Expenses: Our Company incurred Rs. 605.89 Lakhs in other expenses during FY 2025-26, compared to Rs. 514.43 Lakhs in FY 2024-25, an increase of 17.78%. This increase was driven primarily by rise in costs of Power & Fuel, Factory rent, Conveyance expenses, Commission charges, Legal and professional charges, Repairs and Maintenance charges, Other Administrative and Selling & Distribution expenses.
Restated profit before tax:
Restated profit before tax: Net profit before tax for the financial year 2025-26 increased to Rs. 868.63 Lakhs as compared to Rs. 626.57 Lakhs in the financial year 2024-25, marking an increase of 38.63%. This significant growth was primarily driven by the factors mentioned above.
Restated profit for the year:
Restated profit for the year: As a result of the foregoing factors, our profit after tax increased by 38.38%, rising from Rs. 468.53 Lakhs in the financial year 2024-25 to Rs. 648.33 Lakhs in the financial year 2025-26.
1st MARCH 2025 COMPARED TO FINANCIAL YEAR ENDED 31st MARCH 2024
Total Income:
The total income for FY 2025 stood at Rs. 4,563.04 Lakhs, compared to Rs. 3,584.54 Lakhs in FY 2024, reflecting a growth of 27.30%. This increase was primarily driven by higher Revenue from Operations and Other Income.
Revenue from Operations:
The increase in Revenue from Operations by 26.99% in FY 2024-25 is primarily attributable to the expansion of our installed manufacturing capacity, which enabled the Company to cater to higher demand. The installed capacity for Rotary Nickel Screens increased from 60,000 units in FY 2022-23 to 88,800 units in FY 2024-25. Although the capacity enhancement was undertaken during FY 2023-24, its full benefit materialised in FY 2024-25, resulting in higher production volumes and improved fulfilment of customer orders.
Consequently, sales of our core manufactured product rose from approximately 3,518.90 lakhs in FY 2023-24 to 3,989.75 lakhs in FY 2024-25, reflecting the improved utilisation of the expanded capacity. Further, revenue from traded goods also increased, rising from 1.29% of total revenue in FY 2023-24 to 11.83% in FY 2024-25, providing an additional contribution to the overall growth.
Other Income:
Other income for FY 2025 stood at Rs. 28.92 Lakhs, compared to Rs. 14.01 Lakhs in FY 2024, marking an increase of 106.39%. The increase was primarily due to Sale of Scrap (Rs. 13.52 Lakhs in FY 2025 vs. Rs. 5.31 lakhs in FY 2024) and increase in Government Subsidy, Interest on Fixed Deposit, Interest on Security Deposit, Balance Written back, Renting of Commercial Vehicle consisting of (Rs. 15.40 Lakhs in FY 2025 vs Rs. 8.70 Lakhs in FY 2024).
Total Expenses:
Total expenses for FY 2025 were Rs. 3,936.47 Lakhs, compared to Rs. 3,383.40 Lakhs in FY 2024, reflecting an increase of 16.35%. This increase was due to increase in business operations of the Company resulting into higher purchase of stock in trade, employee benefits, depreciation and other operational expenses.
Cost of Material Consumed:
The cost of material consumed decreased marginally by 2.07% from 2,436.85 lakhs in FY 2024 to 2,386.36 lakhs in FY 2025. As a percentage of revenue from operations, the cost of material consumed decreased from 68.25% in FY 2024 to 52.63% in FY 2025, indicating improved material efficiency.
Purchases of Stock in Trade:
The purchases of stock in trade increased to Rs. 504.96 Lakhs in FY 2025 from Rs. 40.18 Lakhs in FY 2024, representing increase of 1156.80% primarily due to the increased trading activity of Nickel Cathodes.
Change in inventories:
Our Company has incurred Rs. (41.98) Lakhs as Change in inventories of finished goods during the financial year 2024-25 as compared to Rs. (96.77) Lakhs in the financial year 2023-24.
Employee Benefits Expense:
Our Company has incurred Rs. 354.17 lakhs as Employee Benefits Expense in FY 2024-25, reflecting an increase of Rs. 61.79 lakhs from Rs. 292.38 lakhs in FY 2023-24. This increase was primarily due to Salaries and Bonus rose from Rs. 59.51 lakhs to Rs. 72.68 lakhs, while Director Remuneration increased from Rs. 51.00 lakhs to Rs. 65.40 lakhs. Wages increased from Rs. 114.50 lakhs to Rs. 136.55 lakhs and Leave Encashment increased from Rs. 6.60 lakhs to Rs. 7.48 lakhs. There was also an increase in Contribution to PF, ESIC & Other Funds, which increased from Rs. 16.99 lakhs to Rs. 21.73 lakhs. Additionally, Staff Welfare Expenses increased from Rs. 37.68 lakhs to Rs. 40.68 lakhs, and Gratuity provisions rose from Rs. 6.11 lakhs to Rs. 9.65 lakhs.
Finance Cost:
Our Company has incurred Rs. 90.88 Lakhs as finance cost during the financial year 2024-25 as compared to Rs. 128.74 Lakhs in the financial year 2023-24 reflecting a decrease of Rs. 37.86 lakhs. This reduction was primarily due to decline in interest on loans, from Rs. 121.69 lakhs in FY 2023-24 to Rs. 87.40 lakhs in FY 2024-25 a decrease of Rs. 34.29 lakhs. 2023-24. The increase in depreciation was around 10.91%, which was primarily due to purchase of Plant & Machinery.
Other Expenses:
Other Expenses: Our Company incurred Rs. 514.43 Lakhs in other expenses during FY 2024-25, compared to Rs. 466.92 Lakhs in FY 2023-24, an increase of 10.17%. This increase was driven primarily by rise in costs of Power & Fuel, Factory rent, Labour charges, Water charges, Other Administrative and Selling & Distribution expenses.
Restated profit before tax:
Restated profit before tax: Net profit before tax for the financial year 2024-25 increased to Rs. 626.57 Lakhs as compared to Rs. 201.14 Lakhs in the financial year 2023-24, marking an increase of 211.51%. This significant growth was primarily driven by the factors mentioned above.
Restated profit for the year:
Restated profit for the year: As a result of the foregoing factors, our profit after tax increased by 211.61%, rising from Rs. 150.36 Lakhs in the financial year 2023-24 to Rs. 468.53 Lakhs in the financial year 2024-25.
Cash Flows and Cash and Cash Equivalents:
For the year ended March 31, |
|||
| Particulars | 2026 | 2025 | 2024 |
| Net cash (used)/generated from operating activities | 284.64 | 381.31 | 586.45 |
| Net cash (used)/generated from investing activities | -257.81 | -100.70 | -292.82 |
| Net cash (used)/generated from financing activities | -33.89 | -286.35 | -299.03 |
| Net increase / (decrease) in cash and cash equivalents at the end of the year | -7.06 | -5.74 | -5.40 |
| Cash and Cash equivalents at the beginning of the year | 13.86 | 19.60 | 25.00 |
| Cash and Cash equivalents at the end of the year | 6.80 | 13.86 | 19.60 |
Operating Activity:
FY 2025-26
Net cash generated from operating activities was Rs. 284.64 lakhs for FY 2025-26. While our net profit before tax was Rs. 868.63 lakhs, we had an operating profit before working capital changes of Rs. 1,086.44 lakhs for the FY 2025-26 which was primarily due to depreciation of Rs. 123.75 lakhs, finance cost of Rs. 73.06 lakhs, provision for gratuity of Rs. 13.99 lakhs, bad debts of Rs. 19.82 lakhs and offset by interest income for (Rs. 5.21) lakhs and renting of commercial vehicle for (Rs. 7.52) lakhs. Our changes in working capital for the FY 2025-26 primarily consisted of a increase in trade receivables by (Rs. 271.40) lakhs, increase in inventories by Rs. (288.95) lakhs, decrease in other current liabilities by Rs. (4.83) lakhs, increase in trade payables by Rs. 41.15 lakhs and increase in short term loans & advances by (Rs. 66.71) lakhs. Our income taxes were Rs. 211.05 lakhs for the financial year 2025-26.
FY 2024-25
Net cash generated from operating activities was Rs. 381.31 lakhs for the FY 2024-25. While our net profit before tax was Rs. 626.57 lakhs, we had an operating profit before working capital changes of Rs. 845.50 lakhs for the FY 2024-25 which was primarily due to depreciation of Rs. 127.66 lakhs, finance cost of Rs. 90.88 lakhs, provision for gratuity of Rs. 9.65 lakhs, bad debts of Rs. 0.40 lakhs and offset by interest income for (Rs. 0.84) lakhs, renting of commercial vehicle for (Rs. 6.86) lakhs and balance written back for (Rs. 1.97) lakhs. Our changes in working capital for the FY 2024-25 primarily consisted of a increase in trade receivables by (Rs. 324.90) lakhs, decrease in inventories by Rs. 39.17 lakhs, decrease in other current liabilities by Rs. 22.23 lakhs, increase in trade payables by (Rs. 16.8) lakhs, increase in short term loans & advances by (Rs. 14.45) lakhs and increase in short term provisions by (Rs. 0.31) lakhs. Our income taxes paid was Rs. 169.14 lakhs for the financial year 2024-25.
FY 2023-24
Net cash generated from operating activities was Rs. 586.45 lakhs for the FY 2023-24. While our net profit before tax was Rs. 201.14 lakhs, we had an operating profit before working capital changes of Rs. 452.14 lakhs for the FY 2023-24 which was primarily due to depreciation of Rs. 115.09 lakhs, finance cost of Rs. 128.74 lakhs, provision for gratuity of Rs. 6.11 lakhs, bad debts of Rs. 7.76 lakhs and offset by interest income for (Rs. 0.58) lakhs, renting of commercial vehicle for (Rs. 6.12) lakhs. Our changes in working capital for the FY 2023-24 primarily consisted of a decrease in trade receivables by Rs. 679.450 lakhs, increase in inventories by (Rs. 228.67) lakhs, increase in other current liabilities by (Rs. 56.72) lakhs, increase in trade payables by (Rs. 270.42) lakhs and decrease in short term loans & advances by Rs. 30.88 lakhs. Our income taxes paid was Rs. 20.20 lakhs for the financial year 2023-24.
Investing Activity:
FY 2025-26
Net cash outflow from investing activities was Rs. 257.81 lakhs for FY 2025-26, primarily comprising payment for purchase of fixed assets of Rs. 142.43 lakhs, capital advances of Rs. 111.00 lakhs, increase in fixed deposits of Rs. 12.79 lakhs and increase in other non-current assets of Rs. 4.31 lakhs. These outflows were partially offset by interest income received of Rs. 5.21 lakhs and income from renting of commercial vehicle of Rs. 7.52 lakhs.
FY 2024-25
Net cash outflow in investing activities was (Rs. 100.70) lakhs for the FY 2024-25, primarily comprising payment for purchase of fixed assets of (Rs. 107.55) lakhs, increase in fixed deposit by (Rs. 0.62), increase in other non-current assets (Rs. 0.22) lakhs, interest income received for Rs. 0.84 lakhs, income from renting of commercial vehicle of Rs. 6.86 lakhs.
FY 2023-24
Net cash outflow in investing activities was (Rs. 292.82) lakhs for the FY 2023-24, primarily comprising payment for purchase of fixed assets of (Rs. 254.78) lakhs, increase in fixed deposit by (Rs. 0.52) lakhs, increase in non-current assets by Rs. 44.21 lakhs, interest income received for Rs. 0.58 lakhs, income from renting commercial vehicle of Rs. 6.12 lakhs.
Financing Activity
FY 2025-26
Net cash flow used in financing activities was (Rs. 33.89) lakhs for the FY 2025-26, primarily comprising of proceeds from long-term borrowings of Rs. 36.19 lakhs, increase in short term borrowings by Rs. 200.70 lakhs, repayment of long-term borrowings of (Rs. 197.73) lakhs and interest expense of (Rs. 73.06) lakhs.
FY 2024-25
Net cash flow used in financing activities was (Rs. 286.35) lakhs for the FY 2024-25, primarily comprising of proceeds from long-term borrowings of Rs. 14.21 lakhs, increase in short term borrowings by Rs. 57.82 lakhs, repayment of long-term borrowings of (Rs. 267.51) lakhs and interest expense of (Rs. 90.88) lakhs.
FY 2023-24
Net cash flow used in financing activities was (Rs. 299.03) lakhs for the FY 2023-24, primarily comprising of proceeds from long-term borrowings of Rs. 194.88 lakhs, repayment of short-term borrowings by (Rs. 251.24) lakhs, repayment of long-term borrowings of (Rs. 113.93) lakhs and interest expense of (Rs. 128.74) lakhs.
Details of change in the Revenue, EBITDA and PAT year on year are as below:
(Rs. in lakhs except percentage)
| Particulars | FY 2025-26 | FY 2024-25 | FY 2023-24 |
| Revenue from Operation | 5,072.73 | 4,534.12 | 3,570.53 |
| % rise in Revenue from operation year on year | 11.88% | 26.99% | 3.01% |
| EBITDA | 1,000.32 | 812.71 | 423.91 |
| EBITDA margin (%) | 19.72% | 17.92% | 11.87% |
| % rise in EBITDA year on year | 23.09% | 91.72% | 86.87% |
| PAT | 648.33 | 468.53 | 150.36 |
| % PAT margin to revenue | 12.78% | 10.33% | 4.21% |
Rationale for increase / decrease in Revenue, EBITDA and PAT from FY 2023-24 to FY 2024-25 to FY 2025- 26:
The increase in Profit After Tax (PAT) and PAT margin, despite a lower growth in total income, is primarily attributable to the significant reduction in the cost of nickel plate, which constitutes a major component of the Companys raw material consumption.
The Companys total income increased from ?5,384.54 lakhs in FY 2023-24 to ?5,423.04 lakhs in FY 2024-25 and further to ?5,132.01 lakhs in FY 2025-26. The reduction in the FY 2025-26 was due to reduction in sale of Nickel Cadmium.
The Cost of Goods Sold (COGS) increased from ?2,28.26 lakhs in FY 2023-24 to ?2,849.14 lakhs in FY 2024-25 and to ?2,676.12 lakhs in FY 2025-26, with an increase in business volumes. However, COGS as a percentage of Revenue from Operations improved from 62.81% in FY 2024-25 to 60.46% in FY 2025-26, reflecting a decrease in raw material costs, including a reduction in the price of nickel plate. This was primarily attributable to improved material cost efficiency, including favorable price trends.
The improvement in operating margins, together with a reduction in finance costs from ?1.28 lakhs in FY 2023-24 to ?0.88 lakhs in FY 2024-25 and further to ?1.02 lakhs in FY 2025-26, alongside lower depreciation charges, contributed to the increase in EBITDA and PAT. Consequently, EBITDA increased from ?21.14 lakhs in FY 2023-24 to ?26.37 lakhs in FY 2024-25 and further to ?27.80 lakhs in FY 2025-26, while PAT increased from ?11.51 lakhs to ?14.88 lakhs and ?8.48 lakhs, respectively.
Year-on-Year Analysis of Cost of Material Consumed in relation to Revenue from Operations:
(? in lakhs except percentage)
| Particulars | FY 2025-26 | FY 2024-25 | FY 2023-24 |
| Cost of Material consumed (a) | 2,588.42 | 2,386.36 | 1,430.85 |
| Revenue from Operations (b) | 5,072.73 | 4,726.12 | 2,564.87 |
| Purchase of Stock in Trade (c) | 87.69 | 504.19 | 40.13 |
Total Cost (a+c) |
2,676.11 |
2,890.54 |
1,470.98 |
Total Cost as a % of Revenue from Operations |
52.76% |
61.16% |
57.35% |
Cost as a % of Revenue from Operations |
50.03% |
62.81% |
66.46% |
Rationale for changes in Cost of Goods as a percentage of Revenue from Operations from FY 2023-24 to FY 2024-25 and FY 2025-26:
The Cost of Goods as a percentage of Revenue from Operations declined from 66.46% in FY 2023-24 to 62.84% in FY 2024-25 and further to 60.46% in FY 2025-26. This reduction was primarily attributable to favourable movement in nickel prices, improved cost efficiency, along with higher revenue growth.
During FY 2024-25, the Cost of Goods increased from ?2,28.26 lakhs to ?2,849.14 lakhs, primarily due to the increase in business volumes and trading activities. However, Revenue from Operations increased at a higher rate from ?2,564.54 lakhs to ?4,726.12 lakhs, resulting in a reduction in the Cost of Goods to Revenue ratio from 66.46% to 62.84%. The decline in raw material prices further supported this improvement.
During FY 2025-26, the Cost of Goods increased further to ?2,676.11 lakhs, while Revenue from Operations decreased to ?5,072.73 lakhs. As revenue grew at a higher rate than the corresponding increase in Cost of Goods, the ratio further improved to 60.46%.
Discussion on Balance Sheet Items:
Long / Short term borrowings:
The Companys long-term borrowings, net of current maturities, stood at Rs. 74.49 lakhs as at March 31, 2026, as compared to Rs. 56.14 lakhs as at March 31, 2025 and Rs. 56.88 lakhs as at March 31, 2024. The decrease of Rs. 48.75 lakhs during FY 2024-25 was primarily attributable to repayment of term loans and vehicle loans.
Secured long-term borrowings stood at Rs. 74.40 lakhs as at March 31, 2026, as compared to Rs. 146.42 lakhs as at March 31, 2025 and Rs. 223.76 lakhs as at March 31, 2024. The decrease was primarily due to scheduled repayments of term loans and vehicle loans.
Unsecured borrowings from directors and their relatives, which stood at Rs. 414.73 lakhs as at March 31, 2025 and Rs. 543.13 lakhs as at March 31, 2024, were not classified as long-term borrowings as at March 31, 2026. During Fiscal 2026, an amount of Rs. 340.02 lakhs outstanding towards loans from directors was classified as short-term borrowings, as the same was payable on demand. Accordingly, the decrease in long-term borrowings during Fiscal 2026 was partly attributable to the reclassification of such borrowings and should not be construed as full repayment of the outstanding director loans.
Short Term Borrowings:
The Companys short-term borrowings stood at Rs. 667.35 lakhs as at March 31, 2026, as compared to Rs. 141.43 lakhs as at March 31, 2025 and Rs. 131.18 lakhs as at March 31, 2024. The increase of Rs. 525.92 lakhs during Fiscal 2026 was primarily attributable to the classification of Rs. 340.02 lakhs of loans from directors as short-term borrowings, along with increased utilisation of secured working capital facilities.
Secured bank overdraft/cash credit facilities increased to Rs. 264.82 lakhs as at March 31, 2026, from Rs. 64.11 lakhs as at March 31, 2025, primarily due to higher utilisation of working capital facilities. Current maturities of long-term secured borrowings stood at Rs. 62.52 lakhs as at March 31, 2026, as compared to Rs. 77.32 lakhs as at March 31, 2025, reflecting repayment of scheduled instalments during the year.
Trade Receivables:
The Companys trade receivables increased from Rs. 701.57 lakhs as at March 31, 2024 to Rs. 1,026.07 lakhs as at March 31, 2025 and further increased to Rs. 1,277.75 lakhs as at March 31, 2026, in line with the growth in revenue from operations. Revenue from operations increased from Rs. 3,570.53 lakhs in FY 2023-24 to Rs. 4,534.12 lakhs in FY 2024-25 and further to Rs. 5,072.73 lakhs in FY 2025-26. Correspondingly, the receivables cycle was 72 days in FY 2023-24, 83 days in FY 2024-25 and 92 days in FY 2025-26, reflecting the increase in sales while maintaining controlled credit terms. Overall, the movement in trade receivables is aligned with the growth in business operations.
Trade Payables:
The Companys trade payables decreased from Rs. 453.52 lakhs as at March 31, 2024 to Rs. 434.76 lakhs as at March 31, 2025 and increased to Rs. 475.90 lakhs as at March 31, 2026. The increase in trade payables in FY 2025-26 was in line with the growth in business operations. The trade payables cycle was 64 days in FY 2023-24, 69 days in FY 2024-25 and 52 days in FY 2025-26, reflecting improved management of supplier payments and working capital. Overall, the movement in trade payables is aligned with the Companys procurement and operating cycle.
Inventories:
The Companys inventories stood at Rs. 409.45 lakhs as at March 31, 2025 and increased to Rs. 698.40 lakhs as at March 31, 2026. The increase in inventory was primarily in line with the growth in Revenue from Operations, which increased from Rs. 4,534.12 lakhs in FY 2024-25 to Rs. 5,072.73 lakhs in FY 2025-26, and stocking of inventory to meet anticipated demand and support the Companys production and sales requirements.
The reduction in raw material holding is primarily attributable to improvement in the raw material turnover cycle and enhanced production efficiency. During FY 2023-24, the Company increased its installed production capacity, enabling higher manufacturing output and more efficient consumption of raw materials, resulting in progressive optimisation of raw material inventory levels. Improved production planning and procurement discipline led to a faster consumption cycle, thereby reducing the need to maintain higher raw material inventory at year end.
The inventory holding period was 69 days in FY 2023-24, 52 days in FY 2024-25 and 83 days in FY 2025-26. The movement in inventory days was in line with the Companys production and sales requirements, including stocking of inventory to support anticipated demand. Accordingly, the inventory levels were commensurate with the scale of operations and Revenue from Operations, while improvements in raw material consumption and production efficiency supported working capital management and liquidity utilisation.
Loans and Advances given:
Short-term loans and advances increased significantly from Rs. 14.33 lakhs in FY 2023-24 to Rs. 28.79 lakhs in FY 2024-25. This was primarily due to Preliminary expenses for IPO amounting to Rs. 15.40 lakhs in FY 2025-26, short-term loans and advances increased to Rs. 95.50 lakhs, mainly on account of an increase in Preliminary expenses for IPO to Rs. 51.89 lakhs and an increase in Prepaid expenses to Rs. 24.57 lakhs.
Contingent liability:
Other than as described in the section titled "Risk Factors" beginning on page 18 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.
Apart from the risks as disclosed under Section "Risk Factors" beginning on page 18 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.
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 18, 109 and 210 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.
Our company operates in a single segment i.e. Nickel Rotary Screen.
Our Company has not announced any new product or service during the last three financial years.
Our business is not subject to seasonality. For further information, see "Industry Overview" and "Our Business" on pages 98 and 109 respectively.
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 21 of this RHP.
Competitive conditions are as described under the Chapter "Our Business - Competition" beginning on page 117 of this Red Herring Prospectus.
CAPITALISATION STATEMENT
CAPITALISATION STATEMENT AS AT MARCH 31, 2026
| Particulars | Pre Issue | Post Issue |
Borrowings |
||
| Short term debt (A) | 604.84 | * |
| Long term debt (B) | 136.92 | * |
Total debts (C) |
741.75 |
* |
Shareholders funds |
||
| Equity share capital | 806.75 | * |
| Reserve and surplus - as restated | 830.64 | * |
Total shareholders funds |
1,637.39 |
* |
| Long term debt / shareholders funds | 0.08 | * |
| Total debt / shareholders funds | 0.45 | * |
* The corresponding post issue figures are not determinable at this stage pending the completion of public issue and hence have not been furnished.
SECTION VI - LEGAL AND OTHER INFORMATION
OUTSTANDING LITIGATION AND MATERIAL DEVELOPMENTS
Except as stated in this section, there are no: (i) criminal proceedings; (ii) actions by statutory or regulatory authorities; (iii) claims relating to direct and indirect taxes; (iv) disciplinary actions including penalties imposed by SEBI or stock exchanges against the Promoter in the last five financial years, including outstanding action; or (v) Material Litigation (as defined below); involving our Company, its Directors and Promoters.
Our Board, in its meeting held on August 11, 2025, determined that outstanding legal proceedings involving the Company, its Directors and Promoters will be considered as material litigation ("Material Litigation") if the aggregate amount involved in such individual litigation exceeds 1% of profit after tax of the Company, as per the last restated financial statements of the Company or such litigations outcome could have a material impact on the business, operations, prospects or reputation of the Company. Further, as per the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2025, other pending litigations shall also be classified as material based on the lower of the threshold criteria mentioned below -
(i) As per the policy of materiality defined by the board of directors of the issuer
and disclosed in the offer document; or
(ii) Litigation where the value or expected impact in terms of value, exceeds the lower of
the following:
(a) two percent of turnover, as per the latest annual restated financial statements of
the issuer; or
(b) two percent of net worth, as per the latest annual restated financial statements of
the issuer, except in case the arithmetic value of the net worth is negative; or
(c) five percent of the average of absolute value of profit or loss after tax, as per the
last three annual restated consolidated financial statements of the issuer."
Accordingly, other pending litigations involving the Company, Directors and Promoters has been disclosed in this chapter.
The Company has a policy for identification of Material Outstanding Dues to Creditors in terms of the SEBI (ICDR) Regulations, 2018 as amended for creditors where outstanding due to any one of them exceeds 5.00% of the Companys trade payables as per the last restated financial statements.
A. LITIGATION INVOLVING THE COMPANY
(a) Criminal proceedings against the Company
As on the date of this Red Herring Prospectus, there are no outstanding criminal proceedings initiated against the Company.
(b) Criminal proceedings filed by the Company
As on the date of this Red Herring Prospectus, there are no outstanding criminal proceedings initiated by the Company.
(c) Actions by statutory and regulatory authorities against the Company
As on the date of this Red Herring Prospectus, there are no outstanding actions by statutory or regulatory authorities initiated against the Company.
(d) Tax Proceedings:
(i) Direct Tax: - NIL
1) Indirect Tax:-
The Company received an intimation in Form GST DRC-01A under Section 73(5) of the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017, read with Rule 142(1A) of the respective Rules, bearing Reference No. ZD240726037819X, dated July 14, 2026, for Fiscal 2022-23, in relation to alleged excess/wrong avalment or utilisation of input tax credit, pursuant to which an aggregate liability of 33.38 lakhs, comprising tax, interest and penalty, was ascertained.
In response, The company has filed a detailed reply on August 15, 2026, disputing the aforesaid liability along with the supporting documents.
Current Status: As on the date of this Red Herring Prospectus, the matter is pending before the relevant tax authority for its response on the submissions made by the Company.
(e) Other pending material litigations against the Company
As on the date of this Red Herring Prospectus, there are no other pending material litigations against the Company.
(f) Other pending material litigations filed by the Company
Roopa Screen Private Limited Vs. Star Decor Processors (Opponent), Mediation Application filed in July 2025, pending before the City Civil Court Compound, Bhadra, Ahmedabad
In Mediation Application filed in July, 2025, in the City Civil Court Compound, Bhadra, Ahmedabad, the applicant, initiated legal action against the opponent under Section 2(1)(c) of the Commercial Court Act 2016 (4 of 2016). The case stems from a 2024 transaction where the applicant supplied fabricated metal products to the Opponent based on verbal orders, with the alleged goods delivered and received in perfect condition between January 2019 and September 2019. Despite this, the Opponent failed to pay 14,82,877/-, with the last partial payment made on December 23, 2024, prompting the filing of this commercial suit.
The case is currently at the Application stage, with no settlement or compromise amount agreed upon, and the payment status remains unpaid. As on the date of this Red Herring Prospectus, the case status remains pending.
B. LITIGATIONS INVOLVING THE PROMOTERS & DIRECTORS OF THE COMPANY
(a) Criminal proceedings against the Promoters & Directors of the company
As on the date of this Red Herring Prospectus, there are no outstanding criminal proceedings initiated against the Promoters & Directors of the Company.
(b) Criminal proceedings filed by the Promoters & Directors of the company
As on the date of this Red Herring Prospectus, there are no outstanding criminal proceedings filed by the Promoters & Directors of the Company.
(c) Actions by statutory and regulatory authorities against the Promoters & Directors of the company
As on the date of this Red Herring Prospectus, there are no outstanding actions by statutory or regulatory authorities initiated against the Promoters & Directors.
(d) Tax Proceedings: (i) Direct tax -
(1) E-proceeding
A Letter was issued to Mr. Ghanshyambhai Ranchodbhai Thakkar vide Notice/ Communication Reference ID 100025474868, DIN& Letter No: ITBA/COM/F/17/2019-20/1025329148(1) on 18th February 2020 for pendency of outstanding arrear demand under section 154 of the Income Tax Act, 1961 involving an amount of ?4,190/- for the assessment year 2017-18-. The due date to reply was on 24th February 2020. No response was submitted by the assessee.
Current Status: The matter remains pending since the assessee has not furnished any reply to the department.
(ii) Indirect Tax: - NIL
(e) Other pending material litigations against the Promoters & Directors of the company
As on the date of this RHP, there are no outstanding litigations initiated against the Promoters & Directors, which have been considered material by the Company in accordance with the Materiality Policy.
C. Criminal Proceedings Involving Key Managerial Personnel("KMP") And Senior Management Personnel("SMP")
As on the date of this Red Herring Prospectus, there are no outstanding criminal proceedings involving KMP or SMP of the Company.
D. LITIGATIONS INVOLVING THE GROUP COMPANIES WHICH CAN HAVE A MATERIAL IMPACT ON THE COMPANY
As on the date of this Red Herring Prospectus, we do not have a Group Company.
OUTSTANDING DUES TO SMALL SCALE UNDERTAKINGS OR ANY OTHER CREDITORS
The Board of Directors of our Company considers dues exceeding 5% of our Companys total Trade payables as per Restated financial statements, to small scale undertakings and other creditors as material dues for our Company. Our Board of Directors considers dues owed by our Company to the creditors exceeding 5% of the Companys trade payables as per the last restated financial statements as material dues for the Company.
The trade payables for the year ended on March 31, 2026 were Rs. 475.90 lakhs. Accordingly, a creditor has been considered material if the amount due to such creditor exceeds Rs. 23.80 lakhs. This materiality threshold has been approved by our Board of Directors pursuant to the resolution passed on August 11, 2025. As on March 31, 2026, there are 3 creditors to each of whom our Company owes amounts exceeding 5% of our Companys Trade Payables and the aggregate outstanding dues to the 3 creditors amount to approximately Rs. 467.42 lakhs. The details pertaining to amounts due towards material creditors are available on the website of our Company. Further, our Company has 1 creditors which are registered under the Micro, Small and Medium Enterprises Development Act, 2006 and the aggregate outstanding dues to them being approximately Rs. 0.84 lakhs. During the F.Y 2025-26, our company has ensured that payments to all MSME creditors have been made within the statutory timeline of 45 days as prescribed under the MSMED Act, 2006. Since there has been no delay in payment beyond the permitted period, there is no requirement to provide for any interest on MSME dues and hence no provision has been created for the same in the books of accounts.
As on March 31, 2026, our Company owes amounts aggregating to Rs 475.90 lakhs approximately towards 8 trade creditors. There are no disputes with such entities in relation to payments to be made to them.
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