Interiors — Q4 FY25 earnings call

Call held 16 Jun 2025

Management summary

Interiors & More Limited reported strong financial performance for FY25, with revenue growing 84.375% to ₹59 crores and PAT increasing 50% to ₹12 crores. The company is aggressively expanding its manufacturing capacity, aiming to double production this year and achieve 90% in-house production within five years. Distribution is also growing with new showrooms and plans for 10-20 B2C stores, though management acknowledges challenges in working capital and demand seasonality.

Highlights

  • Revenue for FY25 reached ₹59 crores, an 84.375% increase from ₹32 crores last year.

  • PAT for FY25 grew 50% to ₹12 crores, up from ₹8 crores last year.

  • Gross margins are maintained around 50%, with EBITDA margins around 28%, supported by in-house production.

  • Significant expansion of manufacturing capacity planned, aiming to double this year and triple in 2-3 years.

  • Expanding distribution network with new showrooms in Dubai, Pune, Jaipur, and Hyderabad, and plans for 10-20 B2C stores PAN-India.

Concerns

  • PAT percentage slightly declined to 20.24% in FY25 from 24.8% last year due to aggressive growth and margin sharing.

  • Working capital remains elevated, leading to negative cash flow in recent years, though management is working on improvement.

  • Seasonality in demand, particularly in Dubai (April-September dull season), which management cannot directly mitigate.

Key financials

  1. Revenue ₹59 Cr +84.4%YoY
  2. PAT ₹12 Cr +50%YoY
  3. PAT Percentage 20.2%
  4. Gross Margin 50%
  5. EBITDA Margin 28%

What they filed

Q4 FY26: revenue up 125.9%, net profit up 100.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue6 27 18 41 22 +267%61 +126%
EBITDA3 9 6 12 6 +100%16 +78%
Net profit2 5 4 8 3 +50%10 +100%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

medium confidence
  • Capex ₹20 Cr
    • New factory, warehousing, assembling
    This year should be around 20 crores, because it's like, part is completed, part will complete the average, I'll say. Weighted average could be around 20 crores additional CapEx this year.
  • Debt Debt disclosed
    Our financial directors are keep on working on this. And but, yes, we'll take as per requirement and whatever suits based to the company, the combo of equity debt or debt or equity.

Guidance & targets

Revenue

  • Revenue Growth Revenue · Future · Medium confidence 35-40%
    One last. When we say 35% to 40% kind of growth, it's only top line or at least in from a bottom line in the pure play, not margin, pure play number perspective, we'll be able to get that, right? (Vipul Lamba) Yes. May not be same percentage, but, yes, has to be there. (Manish Tibrewal)

    — Manish Tibrewal

Capacity

  • Production Capacity Capacity · This year · High confidence Double
    This year, we are planning to make the production capacity double. Next two, three years, maybe it could be triple.

    — Manish Tibrewal

  • Production Capacity Capacity · Next two, three years · High confidence Triple

    — Manish Tibrewal

Production Mix

  • Own Production Percentage Production Mix · Next five years · High confidence 90%
    We are trying our best to reach 90% own production and 10% import by next five years.

    — Manish Tibrewal

Distribution

  • B2C Stores Opened Distribution · Coming year · High confidence 10-20 stores
    So coming year from this year, we can expect 10 to 20 stores, PAN-India, and we'll keep on adding every year.

    — Manish Tibrewal

What to watch in Q1 FY26

New factory completion and operationalization

Within 3-4 months
Current Under construction, part completed
Target Ready in 3-4 months

Why it matters

Essential for increasing production capacity and achieving import substitution targets, directly impacting future margins and growth.

And therefore, the warehousing, assembling, other part is being constructed, which should be ready in three, four months.

Risks & concerns

  • Seasonality of demand in India and Dubai

    medium

    Dubai experiences a dull season from April to September due to heat, and India's primary season is H2, which management cannot directly mitigate.

    Both acknowledged

  • Working capital intensity for high growth

    medium

    High growth requires more inventory and receivables, leading to negative cash flow in recent years, though management is actively working to improve the ratio.

    Both acknowledged

  • Dependency on imported raw materials

    low

    Management states dependency on imported raw materials is almost negligible due to increased domestic sourcing and own production.

    Both downplayed

Q&A highlights

7 direct
Gross and EBITDA Margins (H1 vs H2, future stabilization) Direct
Yeah. You're absolutely correct. So, first is like H1 is there, see there could be combination. We have different kind of price level and different kind of customers... So, this H1, you can see the high GP could be result of that where B2C turnover is more. In fact, one or two BigFatWeddings were there... But average, you can see that GP is around 50%. And GP is around 50% which may not be very high, but should not go down, because we are compensating that with our own production. So, production also have extra margin.

Clarifies the variability in margins due to sales mix (B2C vs B2B, large wedding events) and the positive impact of in-house production on margins, with management aiming to maintain ~50% GP and ~28% EBITDA margin.

Asked by Agastya Dave

Capex Plan and Revenue Generation from Gross Block Direct
This year should be around 20 crores, because it's like, part is completed, part will complete the average, I'll say. Weighted average could be around 20 crores additional CapEx this year.

Provides specific capex guidance for the current year and links it to future production capacity and import substitution efforts.

Asked by Agastya Dave

Working Capital Management Direct
Improvement. Yeah, we are trying our best to improve this ratio. We bring down this ratio. So, it will increase, not in proportionate.

Indicates management's focus on improving working capital efficiency, which is critical for a high-growth business to manage cash flow.

Asked by Agastya Dave

Soft Revenue Growth Guidance for FY26 Direct
See it's good from your part. See making anything documented, because the construction and the capacity is getting increased, not increased. Until it's increased, it won't be fair from our part to have more and more bigger numbers. So, if we have a lower number and we achieve bigger, so that is good always from our side. But otherwise, it won't look good, so we are being conservative in terms of placing the number.

Explains management's conservative approach to guidance, linking it to the timing of capacity expansion and a preference to over-deliver rather than set aggressive, potentially unachievable targets.

Asked by Ajay Desai

Manufacturing vs. Trading Margin Difference Direct
Around 15%, 20%.

Quantifies the margin advantage of in-house manufacturing over trading, reinforcing the strategic importance of capacity expansion and import substitution for profitability.

Asked by Vipul Lamba

Cash Flow Positivity and Future Capital Needs Partial
We are working on this cash flow. Internal accruals are already happening... we are not getting very aggressive on getting fund and putting into this. We are planning our thing, and as per requirement, we're putting funds so that we get control growth... The cash flows would be, I think controlling one or two years. It won't take much time.

Addresses the company's cash flow situation and funding strategy for growth, indicating a reliance on internal accruals and a controlled approach to external funding.

Asked by Vipul Lamba

Seasonality Mitigation (India vs Dubai) Direct
Yes. Dubai is more like this. April to September is very dull season there due to heat... We cannot mitigate this. We can just try based on the requirement. Like, this mitigation has to come from the customer side, from the wedding side.

Highlights the seasonal nature of demand in key markets (Dubai's dull season, India's H2 peak) and management's limited ability to directly mitigate it, relying instead on customer-driven demand.

Asked by Sahil

Perception of Artificial Flowers and Marketing Efforts Direct
Yes. Market perception is very good, because using fresh flower, which was alternative. Like, earlier artificial flower was alternative. Now we say fresh flower is alternative... So, I can say, we're selling best quality, which is available globally, and there is nothing more than that which we are selling.

Addresses a key market perception challenge regarding artificial flowers and management's strategy to overcome it by emphasizing quality and practical advantages over fresh flowers.

Asked by Ruchit Shah

2 min read 6 chapters

Detailed narrative

Manufacturing Expansion & Import Substitution Strategy

Interiors & More is aggressively expanding its manufacturing capabilities, with plans to double production capacity this year and triple it in the next two to three years. The company aims to increase its in-house production from the current 32% of total goods to 90% within the next five years, significantly reducing reliance on imports. A new factory spanning 200,000 square feet is under construction, with warehousing and assembling sections expected to be ready in three to four months, supported by an additional CapEx of approximately ₹20 crores this year.

Robust Sales Growth & Margin Management

The company reported strong financial performance for FY25, with revenue growing 84.375% YoY to ₹59 crores from ₹32 crores last year. Net profit also saw a 50% increase, reaching ₹12 crores from ₹8 crores. While the PAT percentage slightly decreased to 20.24% from 24.8%, management attributes this to aggressive growth and the need to share margins, aiming to maintain gross margins around 50% and EBITDA margins around 28% through increased in-house production.

Showroom & Distribution Network Expansion

Interiors & More is expanding its physical presence with new showrooms in Dubai (12,000 sq ft for exports), Pune (catering to B2B and B2C), Jaipur (B2B franchisee), and Hyderabad (a seven-floor building for wedding products and retail). The company plans to open 10-20 B2C stores PAN-India in the coming year through a partnership with Franchise India, alongside 10-15 new B2B stores, to cater to regional requirements and decentralize sales.

Market Dynamics & Artificial Flower Acceptance

The company primarily serves the wedding and home decor industries, both experiencing significant growth, with the wedding industry estimated at ₹550,000 crores and the decor industry at ₹50,000 crores. Management highlighted the increasing acceptance of artificial flowers due to their non-perishable nature, ease of installation, and improving quality. This positions them as a superior alternative to fresh flowers for large events, addressing previous market perceptions.

Working Capital & Cash Flow Focus

Management acknowledged that working capital remains elevated due to high growth, which has led to negative cash flow in recent years. However, they are actively working to improve working capital efficiency and reduce the ratio as sales grow. The company expects cash flows to become positive within the next one to two years, relying on internal accruals and a controlled growth strategy to fund its CapEx and operational needs without aggressive external funding.

E-commerce & International Market Penetration

The company is expanding its e-commerce presence, with platforms like Meesho generating around 200 orders, and is building a dedicated team for this channel. Internationally, the Dubai showroom serves as a hub for catering to the Middle East and African countries, currently serving 15 nations. Participation in global exhibitions like Ambiente 2025 in Frankfurt has generated significant leads and orders, including interest from major retailers like Walmart U.S. and HomeCentre, indicating strong international market penetration.

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