ACME Universal Safezone 9 Limited revenue rose, profit trailed FY24

ACME Universal Safezone 9 Limited increased revenue from operations to Rs 205.9031 crore in FY26 from Rs 178.9440 crore in FY24, but profit after tax, or PAT, was Rs 5.8573 crore against Rs 7.5648 crore two years earlier. FY26 margins, return on capital employed and interest coverage also remained below FY24 levels.

Why did Acme's revenue growth not restore FY24 profit?

Acme's revenue growth did not restore FY24 profit because the FY26 recovery followed a sharp FY25 decline and did not return key margins to their earlier levels. Revenue from operations increased 9.90% to Rs 205.9031 crore in FY26, after rising 4.70% to Rs 187.3558 crore in FY25 and 13.46% in FY24. PAT was Rs 5.8573 crore in FY26, compared with Rs 7.5648 crore in FY24, while FY25 PAT had fallen to Rs 80.42 lakh. The FY26 result was therefore a recovery from FY25 rather than a return to the FY24 profit level.

The margin data show the difference between sales growth and net earnings. PAT margin, calculated as PAT divided by revenue from operations, was 2.84% in FY26, up from 0.43% in FY25 but below 4.23% in FY24. Earnings before interest, tax, depreciation and amortisation, or EBITDA, were Rs 15.1519 crore in FY26, compared with Rs 9.8489 crore in FY25 and Rs 14.5508 crore in FY24. However, the FY26 EBITDA margin was 7.36%, below the FY24 margin of 8.13%, meaning that FY26's higher EBITDA was generated on a larger revenue base without regaining the FY24 operating margin.

How far are Acme's returns and debt servicing below FY24 levels?

Acme's returns and debt-servicing coverage improved from FY25 but remained below FY24 levels in FY26. Return on net worth, defined as PAT divided by average net worth, was 11.75% in FY26, compared with 1.81% in FY25 and 19.82% in FY24. Return on capital employed, or ROCE, was 5.54% in FY26, above FY25's 2.52% but below FY24's 12.48%. Acme calculates ROCE as earnings before interest and tax, or EBIT, divided by average capital employed, defined as shareholders' equity plus total debt.

Interest coverage, calculated as EBIT divided by interest expense, was 1.80 times in FY26. That was above 0.73 times in FY25 but below FY24's 3.91 times. Total debt rose to Rs 58.0458 crore in FY26 from Rs 49.6481 crore in FY25 and Rs 44.5096 crore in FY24, while net worth increased to Rs 52.7680 crore from Rs 46.9107 crore and Rs 41.9565 crore, respectively. Debt to equity was consequently 1.10 times in FY26, compared with 1.06 times in both FY25 and FY24.

What changed in Acme's sales mix and production utilisation?

Acme's FY26 sales remained predominantly domestic, while installed soling capacity expanded faster than production utilisation. Domestic sales were Rs 190.1691 crore, or 92.36% of revenue from operations, in FY26, compared with Rs 172.4130 crore, or 92.02%, in FY25 and Rs 162.6886 crore, or 90.92%, in FY24. Export sales increased to Rs 15.6090 crore from Rs 14.7754 crore in FY25, but remained below Rs 15.9853 crore in FY24. Special economic zone sales were Rs 12.50 lakh in FY26, representing 0.06% of operating revenue.

Installed soling capacity rose to 43.15 lakh units per annum in FY26 from 41.15 lakh units in FY25 and 33.15 lakh units in FY24. Actual production was 27.7185 lakh units in FY26, compared with 25.9856 lakh units in FY25 and 25.7605 lakh units in FY24. Capacity utilisation was consequently 64.23% in FY26, marginally above 63.15% in FY25 but below 77.71% in FY24. The company uses final-stage production capacity for this measure, and P.L. Engineering Services certified the figures on June 22, 2026.

What operating dependencies could affect Acme's profitability trend?

Acme's revenue depends substantially on domestic buyers and a limited group of large customers. India accounted for Rs 189.2333 crore, or 91.90%, of FY26 revenue from operations, while the United Arab Emirates was the next-largest country at Rs 6.8027 crore, or 3.30%. Acme's top 10 customers generated Rs 98.2336 crore, or 47.71%, of FY26 operating revenue, while its top five generated Rs 65.3480 crore, or 31.74%. The company states that customers in these groupings may differ between financial years.

Material procurement was also weighted to domestic sourcing and major suppliers in FY26. Total purchases were Rs 149.5105 crore, comprising domestic purchases of Rs 138.1198 crore, or 92.38%, and international purchases of Rs 11.3907 crore, or 7.62%. Uttar Pradesh supplied Rs 93.0369 crore of domestic purchases, while China accounted for Rs 7.6381 crore of international purchases. Acme's top 10 suppliers represented Rs 79.0658 crore, or 52.88%, of total FY26 purchases, and its largest supplier accounted for Rs 23.8039 crore, or 15.92%.

Conclusion

Acme's FY26 figures show expanding operating revenue and a rebound in PAT from FY25, but not a restoration of FY24 profitability measures. Revenue from operations rose by Rs 26.9591 crore between FY24 and FY26, while PAT was Rs 1.7075 crore lower, EBITDA margin was 0.77 percentage points lower and ROCE was 6.94 percentage points lower. The reported comparison indicates that sales growth had not yet recreated the prior level of returns or interest coverage.

The next results to watch are whether Acme can sustain the FY26 recovery in PAT margin and interest coverage while total debt was Rs 58.0458 crore and capacity utilisation was 64.23%. Acme states that it is pursuing growth opportunities in the Middle East, the United States and Europe, with the strategic intent to increase export revenue's share of its revenue mix. Any shift would occur alongside the existing domestic sales concentration, which represented 92.36% of FY26 revenue from operations.