1. Raw material cost restructuring - A new international vendor onboarded in FY25 supplies a key raw material at significantly lower cost, lifting gross margin from 30.05% in FY24 to 37.90% in FY25. That 26% margin expansion flows directly to the bottom line on a revenue base of ₹71 crore, with the full-year benefit still accruing in FY26.
2. Daman localisation of Multiflex™ and SiMB grades - The Daman site is expanding local production of key Multiflex™ and Multibase™ SiMB grades, with completion targeted by Q4 2025. Local production improves the cost position for both domestic and export markets and is already generating renewed customer interest in automotive programs.
3. Silicone Masterbatch traction - Revenue grew 8.5% to ₹70.75 crore in FY25, driven mainly by Silicon Master batch products and a shift in the customer base. The global Silicone Masterbatch market reached USD 1.58 billion in 2025 with a 7.6% CAGR, providing a growing addressable market for the company's core offering.
4. Underwater palletizer installation - An underwater palletizer system is being installed on the 70 W machine to improve granule cutting quality and product aesthetics, expected to cut electricity consumption by approximately 7.5 KWP and significantly reduce water usage. The upgrade directly lowers variable manufacturing cost while enhancing product appeal for customers.
5. Parent entity transfer pricing credits - The company recognised a retrospective price adjustment credit of ₹1.76 crore from its parent entity in the December 2025 quarter, following a ₹2.32 crore credit in the March 2025 quarter. These non-operating credits have added a combined ₹4.08 crore to earnings over two quarters - material against a full-year PAT of ₹10.43 crore.
6. Energy cost reduction initiatives - A 62.5 KVA DG set replaced a 500 KVA unit, cutting fuel consumption by 80%, while contract demand reduction from 600 KVA to 400 KVA saves ₹6.43 lakh annually in demand charges. These structural cost reductions permanently lower the fixed cost base of the single-site Daman operation.