Cosmic CRF Limited has reported a landmark financial year ending March 31, 2025, delivering the best-ever performance on all key financial and operational parameters. The company achieved a remarkable 127% increase in sales volume, reaching 55,941 metric tonnes compared to 24,657 tonnes in FY24, fueled by significant capacity expansion and scale-up across its operations. This surge underscores the company’s successful execution of its growth strategy and operational efficiency enhancements.

While volume more than doubled, the average selling price (ASP) dropped 28.6% to ₹73,454 per MT, primarily due to a sharp decline in raw material prices by about 32%. Consequently, the consolidated revenue increased by 58.4% to ₹4,016.3 million, reflecting strong top-line growth but tempered by the pricing environment. It is important to note that FY24 revenue was reported on a standalone basis, whereas FY25 revenue includes consolidated figures from subsidiaries, offering a comprehensive view of the company’s growth.

Financial Highlights – H2 FY25 Standalone

The second half of FY25 was particularly robust for Cosmic CRF. Standalone revenue grew by 10%, while EBITDA surged by 38.1%, and PAT (Profit After Tax) improved by 6.5%. The EBITDA margin expanded by 211 basis points to 10.4%, highlighting operational efficiencies and cost management. These figures reaffirm the company’s strong fundamentals and ability to deliver consistent profitability amidst market fluctuations.

Capacity Expansion – The Backbone of Growth

A key driver behind the volume growth was the significant capacity expansion during FY25:

• The standalone installed capacity increased by 41%, from 32,000 MTPA to 45,000 MTPA, aided by the addition of a 6,000 sq. ft shed extension.

• Subsidiary NS Engineering Projects Pvt Ltd also expanded capacity to 65,000 MT and achieved a production milestone of 15,000 MT following its acquisition in June 2024.

• Cosmic Springs & Engineering Pvt Ltd acquired the Helical and Casnub Springs manufacturing units, adding a capacity of 14,400 spring sets per annum.

• The company completed the purchase of land in May 2025 to set up a new forged components manufacturing unit, aiming to serve the railways and wagon builders with an additional 7,200 MTPA capacity, with production expected to commence in February 2026.

Robust Order Book and Strategic Acquisitions

Cosmic CRF’s unexecuted order book stood at ₹550 crore as of March 31, 2025, representing nearly 1.8 times the FY25 revenue, indicating strong future revenue visibility and business stability.

Key acquisitions and joint ventures during FY25 include:

• The acquisition of Helical and Casnub Springs units through subsidiary Cosmic Springs and Engineers Ltd, costing around ₹25 crores funded via internal accruals and bank loans.

• Land acquisition for the forged components factory with a planned Capex of ₹45 crores, expected to be funded by a mix of internal accruals and term loans.

• Progress on the resolution plan for Amzen Transportation Industries Private Limited, with the final plan submission due by May 27, 2025.

Credit Rating Upgrade and Cash Flow Position

Cosmic CRF’s credit rating was upgraded to BBB Stable, reflecting improved financial health and creditworthiness.

Although FY25 reported a strong net profit of ₹30.82 crores, operating cash flow (OCF) and free cash flow (FCF) were negative at ₹(726) million and ₹(1,194.5) million respectively, driven by aggressive growth investments and working capital buildup. Significant capital expenditure was made towards capacity expansions, strategic acquisitions, and modernization efforts, which are critical for sustaining long-term growth.

Outlook and Future Growth Strategy

Looking ahead, Cosmic CRF aims to double sales volume annually over the next three years, underpinned by:

• Continued expansion and efficient utilization of manufacturing capacity.

• Adoption of cutting-edge manufacturing technologies to improve productivity and product quality.

• Diversification of product portfolio to address multiple sectors, primarily Railways and Infrastructure.

• Strengthening geographic reach and emphasizing sustainability initiatives.

• Planned acquisition of additional Liquid Metal assets to meet large steel requirements, enhancing integration and cost advantages.

The company’s strong order book and credit profile position it well to capitalize on emerging opportunities. Operational excellence, innovation, and customer focus remain the pillars of its long-term value creation strategy.

Management Commentary

Mr. Aditya Vikram Birla, Chairman & Managing Director, expressed his satisfaction with FY25’s outcomes:
"We are pleased to report a landmark year for Cosmic CRF Limited, marked by record revenue, EBITDA, and net profit. Our strategic emphasis on capacity expansion, operational excellence, and customer-centricity has driven strong results. The successful scale-up of standalone capacity by 41%, key acquisitions, and infrastructure modernization have laid a solid foundation for future growth.

We remain committed to doubling our volumes each year, driven by product diversification, technological advancement, and sustainability. Despite negative cash flows in FY25, these are strategic investments aimed at long-term value creation. With our upgraded credit rating and a robust order book, we are confident of positive cash flow generation and sustained growth from FY26 onward."

Summary

Cosmic CRF’s FY25 financial and operational performance demonstrates its robust growth trajectory supported by strategic capacity expansion, strong order inflows, and focused investments. The company’s future outlook is promising, backed by a diversified product mix, technology adoption, and a commitment to sustainability and operational efficiency. As the new capacities and acquisitions begin to contribute from FY26, Cosmic CRF is poised for strong cash flow recovery and sustained shareholder value creation.

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