| Established track record of operations and extensive experience of promoters
The group has nearly three decades of presence in stainless-steel sheets, sodium silicate, and frit englobe, serving kitchenware and construction industries. Further, promoters bring over 15 years of average board experience, supported by a professional management and marketing team. This long track record and experienced leadership provide stability and support future growth.
Improving scale of operations of the group
UG’s revenue improved to Rs.342.00 Cr. in FY2025 (Prov.) from Rs.281.08 Cr. in FY2024 and Rs.239.09 Cr. in FY2023, driven primarily by higher sales volumes supported by better price realisations. The operating profit margin moderated to 5.35 percent in FY2025 (Prov.) from 5.98 percent in FY2024 due to elevated raw material costs amid steel industry volatility. Furthermore, in H1FY26 the group recorded revenue of Rs 261.28 Cr.
Going forward, Unison Metals Limited is setting up Unit 2 to boost sodium silicate capacity from 20,075 to 45,000 MTPA, raising the group’s total to 59,400 MTPA. The unit is slated to be operational by Q4 FY2026, strengthening its scale and market position.
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| Moderate financial risk profile
The group has a moderate financial risk profile marked by moderate net worth, gearing and coverage indicators. The tangible net worth stood at Rs.47.55 Cr. as of March 31, 2025(Prov.), as against Rs.42.23 Cr. as of March 31, 2024. The gearing stood moderate at 1.51 times as of March 31, 2025 (Prov.). The coverage indicators also stood comfortable with interest coverage ratio and debt service coverage ratio at 2.33 times and 1.20 times in FY25 (Prov.) respectively (2.66 and 1.50 times in FY24). Further, Unison Metals Limited has raised Rs.34.33 Cr through rights issue resulting into increase in the overall tangible net worth of the group in FY2026 further deleveraging the group’s balance sheet.
Intensive working capital operations
UG’s working capital operations remain intensive, with GCA days at 202 days in FY2025 (Prov.) against 215 days in FY2024, driven by high receivables and inventory holding. Inventory days rose slightly to 80 days from 75 days , while debtor days stayed elevated at 107 days in both years, approximately 91% of the group’s receivables are realized within a 90 day period. Creditor days improved modestly to 21 days from 18 days, but the limited credit period from suppliers continues to add pressure. The group has been managing its working capital, with average fund based utilization at ~98.15% and nonfund based utilization at ~82.65% over the past 12 months ending October 2025. To meet rising order requirements, working capital borrowings at Chandanpani were increased from Rs.18.12 Cr. to Rs.28.00 Cr, while Unison Metals utilized ~Rs.4 Cr. from rights issue proceeds in FY2026.
Exposure to raw material price volatility
The group's cost structure is significantly influenced by stainless steel and alloy steel prices. Any sharp fluctuations in these raw materials can affect profitability, given the limited ability to fully pass on cost increases to customers.
The group operates in a highly fragmented stainless steel manufacturing industry with numerous small and mid-sized players. This competitive landscape restricts pricing flexibility and can pressure margins, while also requiring continuous efforts to maintain customer relationships.
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