Agarwal Indl.

Agarwal Industrial Corporation Ltd. delivered a strong performance in FY25, with revenue from operations increasing by 12.9% year-on-year to ₹2,399 crores. The company's operating profitability also saw significant improvement, with EBITDA reaching ₹213 crores, a 19.5% increase over the previous year. This resulted in a margin expansion of 47 basis points, bringing the EBITDA margin to 8.8%. Net profit for the year stood at ₹116 crores, marking a 5.9% increase.

For Q4 FY25, revenue from operations was ₹823 crores, a 6.1% increase year-on-year, and a 52% sequential increase compared to Q3 FY25. EBITDA for the quarter was ₹58 crores, showing a 4% sequential increase. However, the EBITDA per ton in Q4 FY25 declined to ₹2,900, significantly lower than the ₹3,800-₹3,900 in preceding quarters. This margin compression was primarily attributed to prolonged vessel dry docking and maintenance, which impacted the profitability of the chartering segment, reducing its EBIT margin from 31% to 25%.

The company made significant strategic investments during FY25 to bolster its infrastructure. A new 40,000 metric tons storage terminal is being developed at Mangalore port with a CAPEX of ₹40 crores, expected to be operational in Q2 FY26. This facility will allocate 10,000 metric tons for bitumen and 30,000 metric tons for allied products. Additionally, a new manufacturing facility was commissioned in Guwahati with an investment of ₹6 crores to cater to the eastern and northeastern markets, expanding the company's manufacturing footprint and logistics network of over 650 vehicles.

Total bitumen volume for FY25 reached 536,000 metric tons, with 186,000 metric tons in Q4 FY25. While the company targets a 20% volume growth, it fell short in FY25 due to operational limitations and logistical challenges in managing high import volumes. Approximately 15,000 metric tons of volume were affected in Q4 due to vessels being in dry dock. Management aims to achieve 650,000-700,000 metric tons in FY26 by improving supply chain efficiency and potentially adding more vessels.

Agarwal Industrial Corporation Ltd. is optimistic about future growth, driven by India's robust infrastructure development, particularly in road networks. The company reconfirmed its long-term topline guidance of ₹4,000-₹5,000 crores in the next five years. For FY26, it targets a 20% volume growth, aiming for 650,000-700,000 metric tons, and an improved EBITDA per ton of ₹4,200-₹4,500. The company also plans to increase the contribution from its own marine vessels to 65-70% from the current 60%, enhancing logistical advantage and bottom-line performance.