Marvel Decor Ltd — Q4 FY25 earnings call

Call held 12 Jun 2025

Management summary

Marvel Decor Ltd reported an 18% revenue growth to ₹63 crores in FY25, driven by strategic investments in sales, marketing, and new product launches like Solis Motors. Despite a dip in EBITDA margin to 11.8% due to these growth-focused expenditures, management is confident in achieving 20-30% revenue growth and 12-13% EBITDA margin in FY26. The company is actively building a project funnel in both domestic and international markets, with a strong focus on the GCC and USA regions.

Highlights

  • FY25 Revenue increased by 18% to ₹63 crores, demonstrating momentum towards the 10x journey.

  • EBITDA grew from ₹7.14 crores in FY24 to ₹7.56 crores in FY25, despite significant investments.

  • Successful launch of Solis Motors, securing a large project of 900 motors in a Dubai hotel.

  • Established a new sales and marketing office and experience center in Mumbai, hiring 20+ salespeople.

  • Entered the new category of system integrators and onboarded 25+ new channel partners.

Concerns

  • EBITDA margin decreased from 13.2% in FY24 to 11.8% in FY25 due to increased investments in sales, marketing, and new hires.

  • Receivables increased, particularly in Dubai, attributed to high growth and project business.

  • The ambitious 10x revenue target by 2030-31 requires significant incremental growth each year, which analysts questioned given current growth rates.

Key financials

  1. Revenue ₹63 Cr +18%YoY
  2. EBITDA ₹7.56 Cr +5.9%YoY
  3. EBITDA Margin 11.8% -1.4%YoY

What they filed

Q4 FY26: revenue up 15.7%, net profit up 31.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY23Q4 FY23Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue23 26 26 27 31 +32%32 +23%37 +41%32 +16%
EBITDA0 3 3 3 4 +693%3 +1%3 −18%2 −31%
Net profit1 1 1 2 2 +162%2 +14%2 +39%2 +31%
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.

Guidance & targets

Revenue

  • Revenue Growth Revenue · upcoming year (FY26) · High confidence 20% to 30%
    And this year, we are expecting somewhere around a 20% to 30% increase in the upcoming year.

    — Khwahish Paun

  • Revenue Growth Revenue · this year (FY26) · High confidence 20% to 30%
    This year we may grow to 20% to 30%.

    — Ashok Paun

  • Revenue Growth Revenue · Next year (FY27) · Medium confidence 30% to 50% or 40% to 50%
    Next year, maybe 30% to 50% or 40% to 50%.

    — Ashok Paun

Profitability

  • EBITDA Margin Profitability · this year (FY26) · High confidence 12% to 13%
    But yes, definitely this year maybe 12% to 13% we may achieve.

    — Ashok Paun

Strategic

  • 10x Revenue Goal Strategic · 2030-31 · High confidence ₹500 crores (from ₹50 crores)
    So we have target to 2030, '31 that we have set the goal and we are into it.

    — Ashok Paun

Distribution

  • Architect/Interior Designer Onboarding Distribution · this year (FY26) · High confidence more than 200
    So, and this year, almost we will onboard more than 200 architect interior in Mumbai, in PAN India.

    — Ashok Paun

What to watch in Q1 FY26

EBITDA Margin Recovery

next quarter / FY26
Current 11.8%
Target 12-13%

Why it matters

Indicates the effectiveness of investments and return to profitability targets.

But yes, definitely this year maybe 12% to 13% we may achieve.

Risks & concerns

  • EBITDA margin compression

    medium

    EBITDA margin decreased from 13.2% to 11.8% due to investments in sales, marketing, and new hires, but management expects recovery to 12-13% in FY26.

    Both acknowledged

  • Achieving ambitious 10x growth target

    medium

    Analyst questioned the feasibility of the 10x target by 2030-31 given current growth, but management expressed confidence based on foundational investments made.

    Analyst acknowledged

  • Increased receivables impacting working capital

    medium

    Receivables increased, particularly in Dubai, due to high growth in project business; management expects improvement with new banking facilities in Dubai.

    Analyst acknowledged

Q&A highlights

7 direct
Feasibility of 10x revenue target given current growth rates Direct
Definitely. So last year, we have not got that much months. Like, we have raised the fund, which received after seven month of year ended. We have started experience centre in April. But by doing interviews and onboarding to them, giving them training, so entire year, we have not worked. So something we got for the month or one month, three month, and four months, six months. So considering those things, we did 18% growth in last year. And this momentum, I'm sure will be increased every year.

Analyst questioned the aggressive 10x target, and management explained the foundational investments made in FY25 that will yield results in future years.

Asked by Mrunal Kadam

EBITDA margin decline and outlook for recovery Direct
Yeah. So, the EBITDA value was increased compared to last year. But yes, margin has decreased from 13% to yeah 13.2% to 11.8%. But considering those activities, I'm sure that we'll get benefit of last year and this year. And let's see, I think within the six months, we'll come to know more. But 10x, the journey may always require to do such activities. So we are not in the way of the burning or something like that. But yes, definitely this year maybe 12% to 13% we may achieve.

Analyst highlighted margin compression, and management clarified it's due to growth investments, expecting recovery to 12-13% in FY26.

Asked by Mrunal Kadam

Inventory management, aging, and potential write-downs Direct
Yeah. I would like to say a few things. So I think this will be help to everyone. So one, the first thing is this is fabrics most of them. So fabric never get damaged or something like that. So there's no loss from the inventory. But, yes, there's a 500 linen metre process we need to do to produce this fabric. So if there is a product, which I need to keep because there is a challenges in interior designer. So if the team would green or would orange, so those products we should have. So that's why and when you are going to the internationally to the brand, then the product range should be very huge. So that is always you need to keep, when you want to fight with the giant people.

Analyst probed on the large inventory levels, and management explained its strategic nature, non-perishability, and how it's managed through discounts for discontinued products.

Asked by Vinay Ambekar

Contribution and realization from motorized products Direct
So, generally, if we look at the one blind, so this one blinds maybe let's say, if it is ₹5,000 and then motor will add ₹7,000. So it was almost a double sales value. And so motorised and whatever motorised will increase. So, especially, we were looking into our ticket size. So maybe ticket size is ₹25,000. But motorised, as I said, if the blinds of entire home is with the motor. So it is going to 2 lakhs also. So, the system integrator what we are talking about, this will play a bigger role to increase our ticket size.

Management clarified the significant value addition and higher ticket size potential of motorized products, which are a key growth driver.

Asked by Lalit Rai

Shift in focus towards USA/UK markets over India Partial
I would like to say instead of shifting focus, I would like to say, yes, the international business will be a bigger part for us. And the efforts what we need to do over there, and get the businesses comparison is better than India, 100% for sure. So, but yes, in India, there's a different totally teams. So they are working on that event. And, if you ask me, then definitely I'm spending more time nowadays for an industrial market as well. And from there, we will get a good chunk of the growth. And you are absolutely right for that.

Analyst questioned a potential strategic shift, and management confirmed international business will be a larger part but emphasized continued focus and dedicated teams for India.

Asked by Lalit Rai

Increase in receivables, particularly in Dubai Direct
Yeah. So, this is most of receivable increase in the Dubai. So and that was with, they do the high growth and project, and we are now focusing on the ROW international, USA market as well. So we have increased the stock level in Dubai. And because of that, it is increased. But hopefully, our banking will start in Dubai from this year. So receivable decrease from this year.

Analyst raised a concern about working capital, and management explained it's linked to high growth in Dubai projects and expects improvement with new banking facilities.

Asked by Vinay Ambekar

Transfer pricing mechanism between Indian and Dubai entities Direct
So, there's a very clear transparent policy in the company that, Marvel will take the margin what they should get to sell that to Callistus. So let's say the cost is ₹100 and to Dubai to ₹120, because those kind of things count is a wholesale pricing. So this is not affecting us any transferring price, because always there's a margin, Marvel and send to Dubai.

Analyst sought clarity on inter-company transactions, and management confirmed an arm's length principle ensuring each entity generates its own profit.

Asked by Vinay Ambekar

Domestic growth drivers for India revenue Direct
Yeah. So, there's three major things. One is architect interior, what activities we are going to do. We are already started. As I mentioned that we did the special event for the architects in the Pune and Ahmedabad. And in entire year almost 12 to 15 activities we are going to do with them. So this is one. Number two is a project. So as we know that India is in infrastructure wise and economy is growing very well in India. So we are getting good funnel, good enquiries from the project as well. So I think number two is a project business and number three is a system integrator where our ticket size is bigger because the home automation or office automation, everything is motorised and the high end products.

Analyst asked about domestic growth, and management outlined three key drivers: architect/interior designer engagement, project business, and system integrators.

Asked by Piyush Patel

2 min read 6 chapters

Detailed narrative

FY25 Performance and Growth Momentum

Marvel Decor Ltd achieved an 18% revenue growth in FY25, reaching ₹63 crores, up from ₹53 crores in FY24. This growth is seen as a positive step towards the company's ambitious 10x revenue journey, aiming for ₹500 crores by 2030-31. Gross sales for the year stood at ₹71.15 crores. Management expects this growth momentum to accelerate, targeting 20-30% revenue growth in FY26 and potentially 30-50% in FY27.

Strategic Investments and EBITDA Margin Impact

Despite revenue growth, the EBITDA margin for FY25 decreased to 11.8% from 13.2% in FY24. This compression is attributed to significant investments in expanding sales and marketing infrastructure, including establishing a new Mumbai office and experience center, hiring over 20 salespeople, and increased marketing activities. Management views these as foundational investments for future growth and expects the EBITDA margin to recover to 12-13% in FY26.

International Expansion and Project Business

The company is aggressively pursuing international markets, particularly the GCC region and the USA. In Dubai, Marvel Decor has seen strong traction in project business, securing a significant order for 900 Solis Motors in a hotel. The company has a project pipeline of ₹15 crores in Dubai and ₹10 crores in India. A dedicated ROW (Rest of World) team operates from the Mumbai office, focusing on markets like the USA, where a new subsidiary was established to streamline operations and invoicing.

New Product Launches and Category Expansion

FY25 saw several new product introductions, including Solis Motors for blinds and curtains, and new curtain track systems. Marvel Decor also expanded into the new category of system integrators, targeting home and office automation businesses. These new offerings are expected to boost project business and increase average ticket sizes, with motorized blind installations potentially reaching ₹2 lakhs per home.

Working Capital and Inventory Management

The company's inventory, primarily fabrics, is considered non-perishable and strategically maintained to support a wide product range and fight competition. While inventory levels are substantial, management noted that the inventory percentage against sales has reduced. An increase in receivables was observed, mainly from Dubai projects, which management expects to improve with the establishment of banking facilities in Dubai.

Market Penetration and Channel Strategy

Marvel Decor is focusing on onboarding over 200 architects and interior designers across Mumbai and PAN India in FY26 to drive domestic growth. The company also plans to participate in over 20 exhibitions and events to enhance visibility and generate leads. The strategy involves a multi-channel approach, including dealer networks, inter-depository channels, project channels, and direct marketing to end-users.

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