Key Financial Performance - Consolidated

Half Year Comparison (YoY):

  • Revenue from Operations: ₹53.88 crore (H1 FY27) vs ₹48.92 crore (H1 FY26) - 10.14% increase
  • EBITDA: ₹6.70 crore vs ₹7.53 crore - 11.10% decrease
  • EBITDA Margin: 12.43% vs 15.40% - 297 basis points decline
  • PAT: ₹3.58 crore vs ₹4.23 crore - 15.41% decrease
  • PAT Margin: 6.64% vs 8.64% - 200 basis points decline

Half Year Comparison (HoH):

  • Revenue from Operations: ₹53.88 crore (H1 FY27) vs ₹47.61 crore (H2 FY26) - 13.17% increase
  • EBITDA: ₹6.70 crore vs ₹6.43 crore - 4.19% increase
  • EBITDA Margin: 12.43% vs 13.50% - 107 basis points decline
  • PAT: ₹3.58 crore vs ₹3.18 crore - 12.42% increase
  • PAT Margin: 6.64% vs 6.68% - 4 basis points decline

Operating Environment and Cost Pressures

The half year faced significant input cost inflation due to:

  • West Asia conflict disrupting Gulf energy supplies and shipping, keeping crude prices elevated
  • Weaker rupee raising landed cost of imported printer components and consumables
  • Broad-based wholesale price inflation in India lifting raw material, packaging and service costs

Material costs increased to 57.6% of revenue from 54.7% a year ago. The company absorbed part of the cost increase to protect customer relationships and market share.

Financial Position and Cash Flow

Consolidated Indicators:

  • Net cash from operating activities: ₹5.34 crore (6 months) vs ₹8.06 crore (12 months in FY26)
  • Operating cash flow to PAT: 1.5x
  • Net worth: ₹61.28 crore (up ₹3.75 crore in six months from ₹57.53 crore)
  • Debt to equity: 0.29x (unchanged from FY26)
  • Interest cover (EBITDA to finance cost): 9.3x vs 9.4x
  • Current ratio: 1.35x vs 1.41x

Cash Flow Highlights:

  • Operating cash flow of ₹5.34 crore covered approximately 94% of the ₹5.67 crore invested in capital expenditure and product development
  • Standalone operating cash flow of ₹3.03 crore already exceeds the ₹2.58 crore generated in the whole of FY26
  • Annualized return on average net worth was approximately 12%

Strategic Update: AZTRACE Launch

Launched in August 2026, AZTRACE is an intelligence platform for product traceability that provides:

  • Unique digital identity for physical products at point of manufacture
  • Seven integrated engines: Identity, Traceability, Authentication, Inventory, Rewards, Analytics and Anti-Counterfeit
  • Integration with customer ERP, CRM, warehouse and manufacturing systems

Expected Benefits:

  • New revenue streams from platform subscriptions, per-unit coding and verification fees, and premium modules
  • Higher margins from software and recurring service revenues compared to hardware
  • Built-in route to market through existing customer base and installed printers
  • Target sectors: pharmaceuticals, FMCG, food and beverages, consumer durables, industrial goods, and government traceability programs

Management Commentary

Mr. Pulin Vaidhya, Managing Director, stated that despite challenging cost conditions:

  • Consolidated revenue grew 10.1% YoY
  • Jet Inks grew 24.3%
  • Profits improved steadily through the half compared with H2 FY26
  • The company is taking calibrated pricing actions, broadening sourcing base, and tightening working capital
  • Expects margins to recover as input costs normalize
  • Balance sheet remains strong with healthy cash generation

Company Background

Aztec Fluids & Machinery Limited manufactures industrial coding and marking printers, inks, make-up and wash fluids, consumables and service. The group operates manufacturing facilities at Kheda, Gujarat and Chennai, Tamil Nadu through its wholly owned subsidiary Jet Inks. The company's equity shares have been listed on the BSE SME Exchange since May 2024.