Established track record of operations and experienced management
GCIL has an established track record of operations dating back almost four decades, along with experienced management. The company is currently managed by Mr. Rishab Chhajer. The promoter and management of the company have experience of over four decades in the industry which reflected in the growing scale of operations. The experience of the promoters have helped the company to maintain a longstanding relationship with its customers and suppliers.  Acuité believes that the long operational track record coupled with the experience of the management will continue to benefit GCIL going forward, resulting in steady growth in the scale of operations.

Steady improvement in Revenue and Profitability
The revenue of the company has improved in FY25 and stood at Rs. 202.90 Cr. as compared to Rs. 175.58 Cr. in FY24 due to increased business from existing customers. Further, there are high demands, and favourable market conditions that are contributing factors to this growth. The company reported revenue of Rs. 92.03 Cr. in H1FY26 as against Rs. 86.78 Cr. in H1FY25.

In FY25, EBITDA margin stood at 6.26 per cent as compared to 6.32 per cent in FY24. The slight drop in EBITDA margins was due to increase in employee cost and other manufacturing cost. The company done advancement in flexible intermediate bulk containers during FY25 that required intensive labour work.  The profit after tax (PAT) for FY25 stood at Rs. 2.69 Cr. as against Rs. 3.03 Cr. in FY24. The decline in PAT is due to increase in interest cost and depreciation costs. Acuite believes, the operating performance of the company would remain steady over the medium term.

Moderate Financial Risk Profile
The company has a moderate financial risk profile marked by moderate net worth, moderate gearing and average debt protection metrics. The net worth increased to Rs. 41.73 Cr. in FY25 as against Rs. 39.57 Cr. in FY24. The company’s total debt increased to Rs. 59.78 Cr. as on March 31, 2025, as against Rs. 49.87 Cr. as on March 31, 2024. The debt profile comprises of Rs. 11.95 Cr. of long-term debt, Rs. 11.30 Cr of USL, Rs. 33.55 Cr. of short-term debt and Rs. 2.98 Cr. of CPLTD. The overall gearing declined to 1.43 times as on March 31, 2025, as against 1.26 times as on March 31, 2024, majorly due to increase in total debt. The TOL/TNW stood at 2.27 times as on March 31, 2025, as against 1.99 times as on March 31, 2024. The interest coverage ratio (ICR) stood at 2.63 times in FY25 as against 3.08 times in FY24. Further debt service coverage ratio (DSCR) stood at 1.69 times in FY25 as compared to 1.81 times in FY24. The NCA/TD stood at 0.12 times in FY25 as against 0.13 times in FY24. Acuite believes, the financial risk profile is expected to remain moderate on the back of steady accruals.

Moderately intensive working capital operations
The operations of the company remained moderately working capital intensive marked by gross current assets (GCA) of 163 days in FY25 as against 162 days in FY24. The company maintains inventory levels of around 102 days in FY25 as against 99 days for FY24. The inventory is managed as per the orders received from the clients as it is rotating in nature. The Debtor days stood at 52 days in FY25 as against 55 days for FY24. Furthermore, the creditor days stood at 65 days in FY25 as against 54 days in FY24. Credit period to customers have lengthened, especially in the US and Europe, impacting on the working capital cycle and increasing working capital funding requirements. The working capital gap is funded by working capital borrowings from bank. GCIL has high reliance on the bank limit utilisation as the average utilization stood at ~90 per cent for six months ending October 2025. Acuite believes, the operations of the company would remain moderately intensive in the medium term due to high inventory levels and elongated debtors days.  

Susceptibility of margins to raw material price fluctuations and foreign exchange fluctuation risk
As GCIL is engaged in the manufacturing of FIBC bags, the major raw materials required to manufacture such products are polypropylene granules and low-density polyethylene, which are derivatives of crude oil, and the prices of crude oil are directly affected by various macroeconomic factors. Similarly, the prices of such raw materials are also volatile in nature and are imported to extend of ~30 per cent which is hedged and such fluctuations in the major raw material prices may impact the operating profit margin of the company. Furthermore, the company also deals in exports to various countries across the globe, which contribute around 40-50 per cent to the total revenues in FY2025. As a result, the company’s business is exposed to fluctuations in foreign exchange rates. However, such risks are mitigated to some extent due to natural hedging and the forward contracts entered by the company for managing the forex risk.