Shree Ganesh Rem

Shree Ganesh Remedies reported a challenging Q4 FY25, with revenue from operations declining 35% YoY to ₹24.43 crores, primarily due to a slowdown in the European region and a 25-30% reduction in domestic product realizations. EBITDA for the quarter fell 42% YoY to ₹9.88 crores, leading to a 492 bps contraction in EBITDA margin to 40.4%. Profit After Tax (PAT) also saw a significant 48% YoY drop to ₹6.60 crores, impacted by higher depreciation and finance costs from newly commissioned manufacturing block 8. For the full FY25, revenue was ₹108.60 crores (down 14% YoY), while EBITDA decreased 6% to ₹39.21 crores, though the EBITDA margin improved by 290 bps to 36% due to operational efficiencies and increased CRAMS contribution. Full-year PAT was ₹23.10 crores, an 18% decline YoY.

The CRAMS division remains a cornerstone of the company's growth strategy, contributing approximately 15-20% of FY25 revenue. A significant development is the signing of an MOU with a leading Japanese client for a Specialty Chemical project, with commercial supplies anticipated to commence later this year, targeting a peak annual revenue of 30+ crores. In the agrochemical sector, the company secured source status for a key product destined for the European market, with commercialization expected in H2 calendar year 2026, aiming for 30-35+ crores peak revenue. These new CRAMS projects are characterized by higher complexity, involving 4-8 steps compared to previous 2-3 step projects, and are chemistry-driven and customer-specific.

Shree Ganesh Remedies is actively expanding its capabilities and R&D efforts. A new pilot plant is under construction and is expected to be operational in the current financial year (FY26), which will accelerate the development and scale-up of new CRAMS projects. The company has also commenced the development of common infrastructures and utilities at its Dahej site, funded through internal accruals, to support future large-scale CRAMS projects. Manufacturing Block 8 was commissioned in Q1 FY25, and construction for the next manufacturing block is ongoing. The projected CapEx for FY26 is approximately ₹15 crores, demonstrating continued investment in growth.

Management anticipates FY26 to be a year of consolidation and capacity building. Short-term margin pressures are expected to persist due to contract repricing and ramp-up costs associated with new capacities. EBITDA margins are projected to normalize to a range of 24-26% for FY26. Despite these pressures, the company expects moderate top-line growth in FY26 and aims for a long-term vision of doubling revenue with a 20-25% CAGR over the next 3-4 years, driven by the commercialization of new CRAMS and agro projects.

The company's net asset turnover for property, plant, and machinery was 3x in FY24, but currently stands at 1.5-2x, reflecting the impact of recent capacity additions not yet fully utilized. The target is to achieve a 2x asset turnover going forward^⏳. In line with its commitment to sustainable manufacturing, Shree Ganesh Remedies commissioned a 2.5 MW solar power park, which is expected to contribute up to 70% of its electricity from renewable sources, reducing its environmental footprint.