Shakti Polytarp’s Revenue Mix Shifted to Bulk-Discount Granule Trading

Shakti Polytarp Limited shifted its revenue mix sharply towards bulk-discount granule trading: granule sales rose from 17.65% of operating revenue in FY24 to 60.21% in FY25, before declining to 48.25% in FY26. Shakti Polytarp attributes the change to bulk procurement under supplier discount programmes and the subsequent sale of surplus granules in the open market.

How did Shakti Polytarp’s revenue mix shift to granule trading?

Shakti Polytarp’s revenue mix changed because sales of granules rose from Rs 10.9442 crore in FY24 to Rs 100.0951 crore in FY25, making granules its largest revenue category in FY25. Granules are raw materials used to manufacture tarpaulins, but Shakti Polytarp also trades part of its bulk purchases in the open market. Revenue from operations increased from Rs 62.0112 crore in FY24 to Rs 166.2357 crore in FY25, while granule sales increased by Rs 89.1509 crore.

The mix partly moved back towards tarpaulin in FY26, although granule trading remained the largest category by value. Granule sales rose to Rs 104.0123 crore in FY26, but their operating-revenue share declined by 11.96 percentage points to 48.25% because tarpaulin revenue increased faster. All types of tarpaulin produced Rs 99.8247 crore in FY26, compared with Rs 52.9228 crore in FY25, lifting their share from 31.84% to 46.29%.

Shakti Polytarp’s three-year figures show that growth was concentrated in granules and tarpaulins rather than spread across every category. Other-products revenue declined from Rs 13.6373 crore in FY24 to Rs 11.8103 crore in FY26, reducing its revenue share by 16.51 percentage points to 5.48%. Tarpaulin and granule sales together represented 94.54% of FY26 operating revenue, compared with 77.82% in FY24; commission income was Rs 12 lakh in FY24 and nil in FY25 and FY26.

What created Shakti Polytarp’s bulk-discount granule trading model?

Shakti Polytarp says supplier discount programmes created the procurement advantage behind the FY25 increase in granule trading. The company procures raw materials in bulk through structured arrangements, including annual bonding programmes and volume-based discount arrangements offered by Reliance Industries Limited, Hindustan Petroleum Corporation Limited, Indian Oil Corporation Limited, Mangalore Refinery and Petrochemicals Limited, and other vendors.

Under this arrangement, Shakti Polytarp uses some purchased granules for internal tarpaulin production and trades the remaining quantity in the open market. The company says this approach is intended to optimise procurement efficiencies and improve revenue realisation. The stated result was the Rs 89.1509 crore increase in granule sales in FY25, compared with a Rs 15.6131 crore increase in tarpaulin revenue during the same year.

The model depends on supplier commercial policies, minimum offtake commitments, market conditions and continued eligibility under the relevant programmes. Shakti Polytarp states that a modified, discontinued or unrenewed discount scheme, an inability to meet procurement thresholds, or changed supplier pricing policies could reduce its cost advantage, affect margins and limit profitable granule trading.

How concentrated are Shakti Polytarp’s customers and suppliers?

Shakti Polytarp’s revenue and purchases are concentrated among a limited number of counterparties, making the retention of customers and suppliers material to the bulk-trading model. The company says new major customers added in FY25 accounted for a significant portion of granule-sale revenue, without quantifying their individual contribution. Across all operating revenue, the largest customer accounted for Rs 88.7575 crore, or 41.16%, in FY26.

Customer concentration eased after FY25 but remained high in FY26. The top five customers contributed Rs 149.9679 crore, or 69.54%, of FY26 operating revenue, compared with 76.65% in FY25. The top 10 customers supplied 77.86% of FY26 operating revenue, lower than 82.69% in FY25 but above 60.57% in FY24; the company identifies lower demand, lost customers, delayed payments and changed commercial terms as potential pressures on revenue and cash flows.

Supplier concentration matters because the granule model begins with bulk purchases. Shakti Polytarp’s top supplier represented Rs 109.1561 crore, or 55.87%, of FY26 purchases of material and traded goods, after representing 78.69% in FY25. Its top 10 suppliers accounted for Rs 177.0236 crore, or 90.61%, of FY26 purchases, leaving availability and commercial terms dependent on a narrow supplier group.

What operating and cash-flow factors affect granule trading?

Shakti Polytarp’s ability to maintain granule trading depends on managing price volatility, inventory, working capital and open-market demand. Trading requires inventory to be held and purchases to be funded before customer collections are received, while the benefit of supplier discounts can be affected by changes in market prices for granules. Shakti Polytarp identifies these factors as potential risks to revenue, profitability and cash flows.

The cash-flow record shows the relevance of working-capital management. Shakti Polytarp reported net cash used in operating activities of Rs 10.7851 crore in FY25 and Rs 2.0512 crore in FY24, with FY25 primarily affected by increases in inventories, trade receivables, and short-term loans and advances. Operating cash flow became positive at Rs 13.3956 crore in FY26, but the company says sustained positive operating cash generation requires timely receivable collection, inventory control, management of operating expenses and working-capital discipline.

Manufacturing capacity also affects the model because internal production is one use for purchased granules. Shakti Polytarp had 6,900 metric tonnes per annum, or MTPA, of installed capacity at April 1, 2025, and reported actual production of 5,564 MTPA with annualised utilisation of 80.64%. It commissioned 3,000 MTPA of tarpaulin capacity on January 1, 2026 and 3,000 MTPA of shade-net capacity on March 2, 2026; both additions operated for only part of FY26.

Conclusion

Shakti Polytarp’s growth from FY24 to FY26 reflects a material shift in product mix rather than only higher tarpaulin manufacturing. Granule sales increased from Rs 10.9442 crore to Rs 104.0123 crore over the period and accounted for 48.25% of FY26 operating revenue. That scale makes revenue dependent on bulk discount availability, procurement commitments, market pricing and demand from concentrated customers.

The next disclosed matters to watch are whether Shakti Polytarp remains eligible for supplier discount programmes and can meet associated procurement thresholds while controlling inventories and receivables. The company also added 6,000 MTPA of manufacturing capacity during FY26, and states that future utilisation depends on customer demand, raw-material availability, equipment efficiency and operational conditions.