| Established track record of operations and experienced management
Galaxy Group was started in the year 1995. The group has an established track record of more than two decade in the aluminium products industry. The group is promoted by Vhora family led by Mr.Subhash Vrajlal Vhora and Mr. Sameer Subhash Vhora. The promoters have an experience of more than two decades in the aforementioned industry. The extensive experience of the promoters and established track record of operation has helped the group to maintain healthy relationship with its customers and suppliers. Acuité expects that the group will continue to benefit from its experienced management and established track record of operation.
Improving scale of operations:
The revenue of the group has increased to Rs. 295.36 Cr. as on March 31, 2025 (Prov.) as compared to Rs. 233.28 Cr. in the previous year. This growth was primarily driven by an increase in demand for aluminium conductors. The operating profit margin of the group stood at 8.23 percent in FY2025 (Prov) as against 8.73 percent in FY2024. The marginal decline in operating profit margin is on account of volatility in raw material prices. Further, the PAT margin stood at 3.69 percent in FY2025(Prov) against 3.84 percent in FY2024. During Q1FY26, Galaxy Aluminium LLP (GALLP) recorded a revenue of Rs.73.00 Cr, while Galaxy Transmission Private Limited (GTPL) achieved Rs.140 Cr.
Acuite believes that the operating performance of the group would improve in near to medium term, supported by further planning of capacity expansion in existing installed plant.
Moderate Financial Risk Profile:
The financial risk profile of the group is marked by moderate net worth, debt protection metrics & low gearing. The tangible net worth of the group stood at Rs. 61.93 Cr. as on March 31st, 2025 (Prov) against Rs. 51.75 Cr. as on March 31st, 2024, owing to accretion of profit into reserves and capital infusion. The gearing level of group improved and stood at 0.72 times as on March 31, 2025 (Prov) as compared to 1.07 times as on March 31, 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.25 times as on March 31, 2025 (Prov) as against 1.44 times as on March 31,2024. The debt protection metrices of the group remain moderate marked by Interest Coverage ratio of 3.67 times in FY2025 (Prov) and debt service coverage ratio (DSCR) of 2.27 times for March 31, 2025 (Prov). The net cash accruals to total debt (NCA/TD) stood at 0.31 times as on March 31, 2025 (Prov) as compared to 0.20 times as on March 31, 2024.
Acuité believes that the group’s ability to maintain its healthy financial risk profile will remain a key monitorable over the medium term.
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| Moderately Intensive Working capital management:
The working capital management of the group is intensive in nature marked by Gross Current Assets (GCA) of 114 days as on March 31,2025(Prov.) as compared to 118 days as on March 31,2024. The high GCA days is on account of high inventory and debtor days. The debtor days stood at 41 days in FY2025 (Prov) as against 15 days in FY2021. The average credit period allowed to customers is 40-45 days. The inventory days stood at 75 days in FY2025 (Prov.) as compared to 70 days in FY2024. The debtor days stood at 41 days in FY2025 (Prov.) as against 15 days in FY2024. Further, the creditor days stood at 19 days in FY2025 (Prov.) as compared to 15 days in FY2024. Intensive working capital operations have led to high dependency on its fund based working capital limits. The average utilization of working capital limits remained high with average utilisation of fund-based limits at ~ 72.35 % over the last six months ending Jun 2025, and non-fund-based limit utilisation at ~98.03 % during the same period.
Acuite expects the working capital management to remain moderately intensive over the medium term on account of high debtor collection and inventory holding period.
Highly competitive and fragmented industry
The company works in a highly competitive and fragmented segment of the Indian aluminium market, which is characterised by the existence of numerous small, unorganised players. As a result, the industry's players have little pricing power and are subject to pressure from the competition to increase their profitability. Aside from this, its products, are exposed to the risks linked to industry cyclicality and pricing volatility. The susceptibility of the margins to changes in the raw materials price is inherent in this industry.
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