Financial Performance Summary

Half-Yearly Financial Results (FY25-26 vs FY24-25):

  • H1 FY26 Revenue: ₹32.64 crores (vs ₹24.90 crores in H1 FY25)
  • H2 FY26 Revenue: ₹36.1 crores (vs ₹31.51 crores in H2 FY25)
  • H1 FY26 EBITDA: ₹8.4 crores (vs ₹5.95 crores in H1 FY25)
  • H2 FY26 EBITDA: ₹11.3 crores (vs ₹9.0 crores in H2 FY25)
  • H1 FY26 PAT: ₹5.7 crores (vs ₹4.22 crores in H1 FY25)
  • H2 FY26 PAT: ₹6.82 crores (vs ₹5.47 crores in H2 FY25)

Annual Performance Context:

  • Total FY26 Revenue: Approximately ₹69 crores (fell short of initial ₹85 crores guidance)
  • EBITDA margin improved to 31% in H2 FY26 from 28% in H2 FY25

Operational and Business Highlights

Manufacturing Infrastructure:

  • Three manufacturing facilities: Bhiwandi (1 lakh sq ft), Pune (40,000 sq ft), Delhi (20,000-25,000 sq ft)
  • Two warehouses: Bhiwandi and Bangalore
  • Seven showrooms: Rajahmundry, Ahmedabad, Mumbai, two in Pune, Delhi
  • Plans to expand showroom network across India

Production Capacity and Utilization:

  • Current production: ~100,000 pots daily
  • Capacity utilization affected by approximately 10% due to raw material shortages
  • Current infrastructure can support revenues above ₹100 crores
  • Solar panel installation expected to save ₹10-15 lakhs monthly on electricity

Product Portfolio and Revenue Mix:

  • Grower Series: 42-43% of revenue (high volume, lower margin)
  • Roto-moulded Series: 30.66% of revenue (high margin, 10-year warranty)
  • Decorative Series: 14% of revenue
  • Fiberglass: 3.78% of revenue (handcrafted)
  • Shade Nets: 3% of revenue (new vertical, introductory year)
  • Garden Furniture: 1% of revenue (new category)
  • EcoSeries: 1-2% of revenue (sustainable materials)

New Product Launches:

  • Roto-moulded Fountains: First in India, UV resistant, lightweight, 10-year warranty
  • AgriShield Nets: Protective clothing for plants, greenhouse effect, ₹2,000 crore market potential
  • EcoSeries: Blend of sugarcane husk, coffee beans, rice husk with recycled plastic granules

Distribution Network:

  • 13 major distributors across India covering 27 states
  • Four new distributors added in NCR, Hisar, Aurangabad, and Kolhapur
  • B2B constitutes 75% of business, B2C 25%
  • Export markets: USA, Canada, Netherlands, Kuwait, Tanzania, Oman, Saudi Arabia, UAE, Nepal, Taiwan, New Zealand, Australia
  • Export contribution: ~2% of total revenue

Challenges and Headwinds

Raw Material Issues:

  • LPG gas shortage for approximately two months affecting rotational moulding operations
  • Raw material price inflation of 60% (PP prices increased from ₹100-120/kg to ₹160-170/kg, peaked at ₹220/kg)
  • Labour shortages due to fuel price increases and political statements

Market Conditions:

  • Geopolitical issues affecting export performance
  • Customers deferring purchases of non-essential luxury goods
  • Big infrastructure projects (Adani, Reliance) holding back orders
  • Price hikes of 20-25% implemented but not fully covering cost increases

Working Capital:

  • Inventory increased by 62%
  • Receivables increased by 51%
  • Increase attributed to capacity expansion, supporting customer growth (some customers grew 100%), and maintaining stock for large project requirements

Order Book and Business Pipeline

  • Three airport orders: Lucknow, Mumbai, Visakhapatnam totaling ~₹1.5 crores
  • Continuous orders from showrooms with monsoon season being favorable
  • Large customers include Ugaoo (~10% of business, grew from ₹1 crore to ₹10 crore)
  • Other major clients: L&T, Adani, Reliance, Kalpataru, Lodha

Growth Outlook and Guidance

  • Realistic growth expectation of 25-30% annually if geopolitical conditions normalize
  • No specific FY27 revenue guidance provided due to current uncertainties
  • Focus on maintaining margins rather than volume growth in challenging conditions
  • New verticals (fountains, shade nets) expected to contribute significantly to future growth

Expansion Plans

  • Opening new showrooms in Lucknow and Ludhiana
  • Distributor showroom planned for Guwahati
  • E-commerce website launch for direct B2C sales of fountains and furniture
  • No major CapEx plans for FY27, comfortable with current infrastructure