Kriti Industries

Kriti Industries reported a challenging Q4 FY25 with revenue declining 29.3% year-on-year to ₹138 crores, resulting in a minimal EBITDA of ₹0.2 crores and a net loss of approximately ₹4 crores. For the full fiscal year 2025, revenue stood at ₹722 crores, a 16.7% decline from the previous year, with EBITDA at ₹28 crores and an EBITDA margin of 3.93%, a decrease of 294 basis points year-on-year. The company also reported a net loss of around ₹4 crores for the full year.

In Q4 FY25, total sales volume decreased by 24% year-on-year to 13,337 metric tons. The agri segment saw a 9% decline to 9,154 metric tons, while building products grew 18% to 2,513 metric tons. The industrial segment experienced a significant 68% decline to 1,671 metric tons. Annually, total sales volume for FY25 was 67,543 metric tons, down 10.7% year-on-year. The agri segment grew 5% to 53,696 metric tons, building products surged 30% to 9,185 metric tons, but the industrial segment plummeted 73% to 4,662 metric tons.

The company intentionally reduced its exposure to the industrial segment due to sluggish payments from MEP contractors involved in government projects. Management stated they decided to 'stay away as far as we are not sure that now industry has stabilized and government contracts and everything is streamlined,' prioritizing timely payments and margin certainty. This strategic decision led to the substantial volume decline in the industrial segment, which is expected to remain low until market conditions improve.

Kriti Industries has initiated new investments, spending approximately ₹10 crores recently out of ₹55 crores raised, with the remaining plans in discussion. The primary focus for this capital expenditure is the building materials segment and column pipes, which are considered value-added products. These investments aim to augment capacity, improve product range, and enhance offerings, particularly in the building materials sector, which is expected to see 'fairly good growth' from a low base.

Management noted that raw material prices, after a period of continuous decline, have begun to stabilize since April 2025, with a recent marginal price increase. This stability is expected to support margin improvement, with the company targeting overall margins of 'around 10% going forward^⏳.' The agri market is projected to grow at an 8-10% range, and while agri margins are expected to be around 10%, building products are anticipated to offer 'better margins.' The company also highlighted its efficient price pass-through mechanism, typically within 24 hours of raw material price changes.

Kriti Industries maintains a strong market position in its core regions like MP and Rajasthan, holding over 40% market share. The company is also expanding its presence in Maharashtra. For future growth, particularly in the agri business, the company plans to establish new facilities in regional areas to overcome transportation costs. Management emphasized differentiation through product quality, branding, marketing, and timely services, aiming to be recognized as a premium brand appreciated by customers.