XPRO India

XPRO India reported a robust 23% YoY growth in Q4 FY25 revenue from operations, reaching INR 158.21 crores, primarily driven by strong performance in the Coex division. For the full fiscal year 2025, net sales hit an all-time high of INR 535.28 crores, marking a 15% increase over FY24, with production volumes rising 18.4% to 33,014 tons. Despite top-line growth, PBT for Q4 FY25 declined to INR 11.51 crores from INR 16.52 crores YoY, and FY25 EBITDA saw a 7% decline to INR 72.88 crores, attributed to strategic competitive pricing and higher expenses related to expansion.

The Coex division demonstrated healthy growth, with Q4 FY25 revenue increasing over 32% to INR 118.9 crores and FY25 revenue growing approximately 25% to INR 393.86 crores. In contrast, the Biax division's revenue remained relatively flat in Q4 at INR 39.33 crores and marginally dipped by 5.4% in FY25 to INR 141 crores. Management indicated that the overall EBITDA margin was influenced by the higher contribution from the lower-margin Coex business and strategic price adjustments in the higher-margin dielectric film segment, which they believe has now bottomed out.

The company is actively pursuing two major capacity expansion projects. The new line at Barjora, India, has commenced sequential testing and dry runs, with commercial operations anticipated by September 2025, pending the replacement of one damaged component expected by mid-June. The second project, Xpro Dielectric Films FZ-LLC in Ras Al Khaimah, UAE, is progressing steadily with construction and equipment installation, targeting dry runs in the last quarter of calendar year 2025. Each new plant is expected to generate INR 150-200 crores in revenue upon commercial production.

XPRO India adopted a dynamic and flexible pricing strategy, including penetrative pricing, to maintain market traction and customer loyalty, especially in the dielectric film segment, ahead of new capacity coming online. While this impacted short-term margins, management views it as a long-term strategy to secure market share. The company maintains over 30% domestic market share in dielectric films and is shifting towards thinner, higher-value variants. They also noted that pricing declines in dielectric films, which were around 5%, are now showing signs of reversal.

The company's net debt to equity stood at a healthy 0.19x in FY25, with no outstanding long-term borrowings for existing operations. However, long-term debt increased by INR 110 crores due to supplier credit (ECB) for the new Barjora line. The Board has recommended a dividend of INR 2 per equity share for FY25. Capital raised through preferential issues and a QIP in prior years is being utilized as planned, with 2,65,750 equity shares allotted in FY25 from warrant conversions, and full conversion expected by end July 2025, which will increase equity capital to INR 23.47 crores. The company holds fixed deposits of almost INR 180 crores for balance capital requirements.

XPRO India is capitalizing on supportive government policies, such as the PLI scheme for electronic components, which encourages domestic manufacturing and exports. The company's strategy includes targeting imports and expanding capacitor manufacturers in India, who are 100% dependent on Indian film. Globally, the company is leveraging the 'China Plus One' strategy, with the UAE plant strategically positioned to supply Western markets (Europe, USA), mitigating risks from potential trade policy changes and global oversupply concerns.