| Experienced management and long-track record of operations
Indo Group has been present in the welfare scheme supply industry for over two decades and is supported by a well experienced and qualified management personnel. The group undertakes supply of food articles, household, essential, safety kits for the Government of Maharashtra. Further, the common management and operational synergies among the group entities provide flexibility in order execution and resource allocation. The group’s established presence in the industry and their past record of order execution is expected to support the business profile of the group.
Healthy financial risk profile
The group has a healthy financial risk profile, with a strong networth, low gearing and healthy debt coverage metrics. The tangible networth of the group stood healthy at Rs. 798.26 Cr. on March 31, 2026 (Prov.) as against Rs. 797.49 Cr. on March 31, 2025 despite withdrawal of excess surplus by partners. The gearing though increased marginally, continues to remain below unity at 0.39 times on March 31, 2026 (Prov.) as borrowings mainly consist of short term working capital debt and unsecured loans from promoters. Further, the TOL/TNW levels and Debt-EBITDA levels remain moderate at 0.74 times and 0.97 times respectively on March 31, 2026 (Prov.).
The financial risk profile of the group is expected to remain healthy in the absence of any debt funded capex plans over the medium term.
Healthy profitability margins
The group has maintained healthy profitability margins over the years, with a further improvement in FY2026 (Prov.) wherein operating margin increased to 25.79 percent in FY2026 (Prov.) from 16.82 percent in FY2025, primarily driven by higher margins reported by Shiva Enterprise. During FY2026, Shiva Enterprise witnessed a favourable change in its product mix, with a higher proportion of orders for utensils, which command better margins than baby kits. Further, discounts secured through bulk procurement of materials also supported the profitability margins of the group. Consequently, the group’s PAT margin improved to 25.33 percent in FY2026 (Prov.) from 15.22 percent in FY2025
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| Intensive working capital operations
The group has an intensive working capital operation cycle, evident from gross current assets (GCA) of 272 days in FY2026 (Prov.). These are mainly driven by debtor days, which stood increased at 172 days in FY2026 due to pending government receivables. For inventory stock, the articles are purchased only after the order is received. The creditor days stood at 124 days in FY2026 (Prov.). However, despite any intensive working capital cycle, the group's reliance on external working capital limits remains minimal. The average bank limit utilization for the group stood low at ~38 percent for the last six months ended August 2026.
Volatile scale of operations
The group’s revenue profile remains volatile due to its dependence on orders floated by the state government. Any slowdown or delay in the floating of such orders directly affects the group’s topline. A slowdown in orders during FY2025 and FY2026 resulted in a decline in operating revenue to Rs. 1,117.89 Cr. in FY2026 (Prov.) from Rs. 1,441.32 Cr. in FY2025 and Rs. 2,659.86 Cr. in FY2024. Further, given the common management, orders are allocated among the four entities based on mutual decisions, resulting in fluctuations in their individual revenues. Going forward, the continued inflow of new orders and sustained improvement in revenue will remain key monitorable.
Inherent risk of capital withdrawal by partners
The constitution of Shiva Enterprise and Saroj Enterprise is of partnership firm which leads to the inherent risk pf capital withdrawal by the partners. In FY2026, the partners withdrew significant capital of ~Rs. 250 - 285 Cr., which led to a stagnant networth. However, funds of ~Rs. 100 Cr. where re-infused in the group as unsecured loans. Going forward any significant withdrawals affecting the financial risk profile of the group will remain a key monitorable.
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