One of India's leading players in circular economy with a proven track record with demonstrated
operational stability.
Application of Hedging Mechanism for Commodity Price Risk Related Protection.
Strong customer base along with robust raw materials sourcing capabilities.
Track record of profitability and consistent financial performance.
Experienced promoters and professional management team.
The company served 52, 54 and 54 customers for the Fiscals 2026, 2025 and 2024. The revenue from the company's top customer
was Rs. 4,745.56 million, Rs. 3,804.08 million and Rs. 3,352.94 million and contributed to 40.64%, 51.22% and
72.42% of revenue from operations during the respective years. The loss of any of these customers could have
a material adverse effect on its business, financial condition, results of operations and cash flows.
During the Fiscals 2026, 2025 and 2024, 84.79%, 87.23% and 88.64% of the company's revenue from operations,
respectively, were attributed to the battery and metal industries and therefore its business operations is
dependent upon the said industries. Any downturn in the demand of battery and metal industries and the other
industries in which the company's customers operates, could adversely affect its business, financial performance and
condition.
The company depends on third party suppliers for the supply of raw material required for its business operations. Any
disruptions in the supply or availability of the raw material or fluctuations in their prices may have an adverse
impact on the company's business operations, cash flows and financial performance. Further, its cost of raw material
purchased from the company's top 10 suppliers were Rs. 3,567.49 million, Rs. 3,047.48 million and Rs. 1,881.67 million,
representing 38.48%, 53.71% and 51.06%, of its total purchases of raw materials in the Fiscals 2026, 2025
and 2024, respectively.
The company has a limited operating history, and its historical performance may not be indicative of the company's future growth
or financial results.
The company debt-to-equity ratio, as per its Restated Financial Information, was 1.25 times, 2.65 times and 4.87 times
for Fiscals 2026, 2025 and 2024, respectively. A high debt-to-equity ratio may adversely affect the company's financial
condition and results of operations.
The company operates in a labour-intensive industry and dependent on contract labour for its manufacturing operations.
In the event of non-availability of contract labour or increase in labour cost or any adverse regulatory orders
or strikes or labour unrest, it may have a material adverse impact on its operations.
Any adverse revision to the company's credit rating by rating agencies may adversely affect its ability to raise additional
financing and the interest rates and other commercial terms at which such funding is available.
The company's inability to comply with repayment and other covenants in the financing agreements or otherwise meet
its debt servicing obligations could adversely affect the company's business, financial condition, cash flows and credit
rating. Further, the company is subject to risks arising from interest rate fluctuations, which could reduce its
profitability and adversely affect the company's business, financial condition and results of operations.
The company derived about 83.68% to 92.80% of its Revenue from Operations from repeat customers in the preceding
three Fiscals and any loss of or a significant reduction in the repeat customers or revenue generated from them
could adversely affect the company's business, results of operations, financial condition and cash flows.
Out of the company's Revenue from Operations from 12 states/union territories across India, more than 40.84% of its
revenue from operations during the Fiscal 2026 was derived from Andhra Pradesh. Further out of the company's Revenue
from Operations from 8 countries, a significant amount of revenue is earned from countries such as Singapore,
Switzerland and South Korea. Any disruption, including occurrence of any internal or external factors in the
State of Andhra Pradesh or in Singapore, Switzerland and South Korea may restrict its operations and
adversely affect the company's business, results of operations and financial conditions.
