1. At a Glance
Q1 FY26 was yet another chapter in Adarsh Plant’s long-running saga of “How to Lose Money and Alienate Shareholders.” Revenue crashed 35% YoY to ₹2.65 Cr, and the company posted a ₹0.04 Cr loss. ROE is an eye-watering -124%, proving it’s still stuck in reverse gear.
2. Introduction with Hook
Imagine a company juggling barrels, farm tools, and smokeless chulhas — and still managing to set its own finances on fire. That’s Adarsh Plant. The only thing growing here is the list of quarterly losses, while the stock trades at 79x its microscopic book value. Ouch.
3. Business Model (WTF Do They Even Do?)
- Industrial Packaging: Makes barrels for chemicals, oil, pharma.
- Agri Equipment: Sprayers, seed cleaners – stuff farmers need.
- Eco-friendly Chulhas: A noble cause, but financial returns? Still missing.
Basically, they sell barrels and hope profits roll in (spoiler: they don’t).
4. Financials Overview
- Q1 FY26 Revenue: ₹2.65 Cr (-35% YoY)
- EBITDA: ₹0.04 Cr (margin 1.5%)
- PAT: -₹0.04 Cr (flatlining)
- 5-year Sales CAGR: ~7% (aka snail pace)
Margins? Flimsy. Profits? Extinct. Investors? Crying.
5. Valuation
With negative profits and P/BV of 79x, fair value is somewhere between “Don’t ask” and “Don’t tell.” Even a sympathy DCF gives a range of ₹15–₹20, far below current levels.
6. What’s Cooking – News, Triggers, Drama
- Q1 results: Another loss.
- AGM scheduled for 27 Sept 2025 (expect free tea, not free cash flow).
- No new order wins, no big contracts, no turnaround signals – just corporate survival.
7. Balance Sheet
| ₹ Cr | Mar 2024 | Mar 2025 |
|---|---|---|
| Assets | 8.93 | 7.93 |
| Net Worth | 1.46 | 0.35 |
| Debt | 4.51 | 4.25 |
Net worth is barely positive, like a student’s bank account after rent.
8. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| CFO | 1.04 | 0.89 | 0.57 |
| CFI | -0.15 | -0.02 | -0.23 |
| CFF | -0.86 | -0.72 | -0.47 |
Cash inflows are tiny; outflows nibble at whatever’s left.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | -124% |
| ROCE | -17% |
| P/E | NA |
| D/E | 0.43 |
| OPM | -4.9% |
ROE so negative it should come with a hazard warning.
10. P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 17.2 | 18.6 | 17.5 |
| EBITDA | 0.40 | 0.76 | -0.86 |
| PAT | 0.14 | 0.49 | -1.12 |
Three words: Consistently inconsistent losses.
11. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | ROE |
|---|---|---|---|
| PI Industries | 7,978 | 1,663 | 18% |
| Dhanuka Agri | 2,035 | 292 | 22% |
| Adarsh Plant | 16 | -1 | -124% |
Peers are busy making money; Adarsh is busy making excuses.
12. Miscellaneous – Shareholding, Promoters
Promoters hold a solid 70.6%, showing they still believe in the company (or just can’t sell). Public holds 29%, perhaps out of nostalgia or misplaced optimism.
13. EduInvesting Verdict™
Adarsh Plant Protect is a cocktail of weak sales, chronic losses, and overvalued stock. The business model has potential, but execution is as leaky as its barrels. Unless there’s a miracle, investors might just end up with a smokeless chulha – lots of heat, no flame.
Written by EduInvesting Team | 26 July 2025
Tags: Adarsh Plant Protect, Agrochemicals, Industrial Packaging, Q1 FY26 Results, EduInvesting Premium, Smallcap Analysis, Loss-making Stocks
