Roopa Screen relies on three suppliers for 90% of purchases

Roopa Screen Limited relied on its top three suppliers for Rs 30.31 crore, or 90.32%, of Fiscal 2026 purchases, while holding no long-term contracts or exclusive arrangements with vendors. Roopa Screen is therefore exposed to delivery, quality and price changes in nickel cathodes and chemicals required to manufacture rotary nickel screens.

How concentrated are Roopa Screen’s supplier purchases?

Roopa Screen’s supplier purchases were highly concentrated in Fiscal 2026, with its top three suppliers accounting for 90.32% of purchases and its top 10 suppliers accounting for 96.73%. Roopa Screen said its suppliers are primarily located in Gujarat, Maharashtra, Punjab and Haryana, and M/s GMCS & Co, the statutory auditor, certified the supplier figures in a certificate dated September 9, 2026.

The difference between purchases from the top three suppliers and the top 10 suppliers was Rs 2.15 crore in Fiscal 2026. The next two suppliers added Rs 0.95 crore, while suppliers ranked sixth through 10th added Rs 1.20 crore, based on the disclosed aggregates. This means the three largest vendors alone accounted for all but 9.68% of Roopa Screen’s purchases.

Why does the lack of supply contracts matter for Roopa Screen?

Roopa Screen does not have long-term contracts or exclusive arrangements with its input-material vendors, so the 90.32% supplier concentration is not supported by contractual supply commitments. Roopa Screen says that this structure exposes it to shortages, delivery delays, variations in material quality and volatility in procurement prices.

A long-term supply agreement generally sets commercial or supply terms for a stated period, but Roopa Screen disclosed no such arrangement with its vendors in Fiscal 2026. To maintain production schedules under this model, the leading suppliers must continue to have capacity, deliver material on schedule and meet required quality standards, or Roopa Screen must be able to procure equivalent inputs from other sources on commercially acceptable terms.

The risk is more pronounced because the top-five supplier group represented 93.12% of Fiscal 2026 purchases, only 2.80 percentage points more than the top-three group. If a major supplier stops supplying materials or misses delivery schedules, the company said it may face difficulty securing adequate alternative quantities when required.

Which materials and costs create the supplier concentration risk?

Nickel is Roopa Screen’s principal raw material, supplied as nickel cathodes, alongside nickel sulphate, nickel chloride, boric acid and other additives. Nickel cathodes are processed nickel inputs, while the specified chemicals are used in manufacturing Roopa Screen’s rotary nickel screens for textile printing and related applications.

Raw-material consumption represented 47.08% of revenue from operations in Fiscal 2026, compared with 52.63% in Fiscal 2025 and 68.25% in Fiscal 2024. The filing reports raw-material consumption of Rs 223.88 crore for Fiscal 2026, Rs 23.86 crore for Fiscal 2025 and Rs 24.37 crore for Fiscal 2024, alongside those respective revenue-share percentages.

The disclosed raw-material share of revenue fell by 21.17 percentage points between Fiscal 2024 and Fiscal 2026. That movement does not remove procurement exposure because Roopa Screen identifies global supply and demand, international commodity markets including the London Metal Exchange, trade policies, indirect taxes, import duties, tariffs, transportation costs and foreign-exchange movements as factors affecting nickel and chemical prices.

How can supplier disruption affect Roopa Screen’s margins and delivery?

A disruption at a major supplier can affect both Roopa Screen’s input costs and its ability to deliver screens on time. Roopa Screen says it may not always be able to pass higher raw-material prices to customers, meaning that increased nickel or chemical costs may affect margins if selling prices do not increase by a corresponding amount.

Raising product prices is not presented as a certain solution. Roopa Screen states that price increases intended to offset input-cost inflation could lead to cancelled orders or lower demand, reducing revenue even where unit selling prices rise. The result depends on customer acceptance, the availability of alternative raw materials and suppliers’ ability to provide required quantities and quality.

A significant or prolonged shortage would have a direct operational effect if Roopa Screen cannot procure materials from alternative sources. Roopa Screen says it would then be unable to meet production schedules for key products or make timely deliveries, with potential effects on sales, margins and customer relationships. Delivery delays from suppliers can also delay Roopa Screen’s manufacturing process and delivery to its customers.

What operational dependencies could compound a supply interruption?

Roopa Screen currently manages production through its existing Sanand facility after it discontinued manufacturing at its Narol facility on December 15, 2025. The Narol premises had installed capacity of 14,400 screens per annum and is now used as Roopa Screen’s registered office and warehouse because applicable factory approvals and Gujarat Pollution Control Board consents were not in place.

Roopa Screen proposes to shift plant and machinery from Narol to a proposed facility at Gallops Industrial Park II, Sanand, after construction is complete and applicable approvals are received. Until that facility becomes operational, manufacturing will continue at the existing Sanand facility. Roopa Screen states that capacity constraints or delays in starting the proposed facility could affect its ability to meet increased customer demand or fulfil orders in a timely manner.

Roopa Screen also derives almost all of its revenue from customers in the textile sector, the main end-use market for rotary nickel screens. In Fiscal 2026, Gujarat accounted for Rs 29.89 crore, or 58.93%, of revenue from operations, while domestic sales totalled Rs 50.57 crore and exports to Sri Lanka were Rs 15.63 lakh. The domestic concentration means a raw-material disruption could coincide with dependence on demand from a limited set of regional markets.

Conclusion

Roopa Screen’s supplier concentration is material because Rs 30.31 crore of Fiscal 2026 purchases, or 90.32%, came from its top three suppliers without long-term or exclusive vendor agreements. Nickel cathodes and specified chemicals are essential inputs, so a supplier’s inability to provide acceptable quantities, quality or delivery timing could translate into production delays, higher costs, reduced margins and pressure on customer relationships.

The next disclosed development to watch is the proposed Gallops Industrial Park II, Sanand facility, including completion of construction and receipt of required approvals. Roopa Screen has said manufacturing will remain at the existing Sanand facility until then, leaving its ability to manage capacity while maintaining supply continuity dependent on the stated expansion plan and supplier performance.