Sona Selection India Limited’s revenue shifted to products

Sona Selection India Limited shifted from service-led revenue in FY24 to product-led revenue in FY26. Sale of products rose from Rs 13.650 crore in FY24 to Rs 427.508 crore in FY26, while sale of services fell from Rs 107.329 crore to Rs 89.441 crore, leaving products at 82.7% of FY26 revenue from operations.

How did Sona Selection’s revenue mix shift to products?

Sona Selection’s revenue mix shifted because product sales overtook service sales in FY25 and widened their lead in FY26. Revenue from operations, which the financial statements divide into sale of services and sale of products, was service-led in FY24: services supplied Rs 107.329 crore, or 88.7%, of the Rs 120.979 crore total. Products supplied Rs 13.650 crore, or 11.3%, in FY24.

By FY25, products contributed Rs 220.787 crore, or 69.9%, of Rs 315.952 crore in revenue from operations, compared with Rs 95.165 crore from services. In FY26, product sales reached Rs 427.508 crore and services were Rs 89.441 crore, producing total revenue from operations of Rs 516.949 crore. The product share therefore increased by 71.4 percentage points between FY24 and FY26, while the services share fell by the same amount.

Sona Selection added Rs 395.970 crore to revenue from operations from FY24 to FY26, but product sales alone increased by Rs 413.858 crore. Product sales thus represented 104.5% of the total revenue increase because service sales declined by Rs 17.888 crore over the same period. The mix change arose from both rapid product growth and a reduction in services in absolute rupee terms.

How quickly did product sales grow compared with services?

Sona Selection increased product sales by more than 30 times over the two reported years, whereas service sales fell 16.7%. Product revenue rose by Rs 207.137 crore from FY24 to FY25, then rose by a further Rs 206.721 crore in FY26. The similar rupee additions in the two years show that the expansion continued after products became the larger revenue category in FY25.

Services moved in the opposite direction in each financial year. Sona Selection recorded Rs 107.329 crore of service sales in FY24, Rs 95.165 crore in FY25 and Rs 89.441 crore in FY26. The decline was Rs 12.164 crore in FY25 and Rs 5.724 crore in FY26, confirming that services did not merely lose revenue share because the total expanded.

Total revenue from operations rose 161.2% in FY25, adding Rs 194.973 crore, and then rose 63.6% in FY26, adding Rs 200.997 crore. Product sales still grew 93.6% in FY26 from the FY25 level of Rs 220.787 crore. For the FY26 product-led revenue mix to continue, product sales would need to remain the principal operating-revenue category because services accounted for only 17.3% of the FY26 total.

What operating costs accompanied product-led revenue growth?

Sona Selection’s product-led revenue growth coincided with a substantially larger material-input base. Cost of materials consumed rose from Rs 52.943 crore in FY24 to Rs 217.782 crore in FY25 and Rs 306.095 crore in FY26. The financial statements calculate this cost as opening stock plus purchases less closing stock, with purchases reaching Rs 351.241 crore in FY26 from Rs 52.212 crore in FY24.

Closing stock was Rs 5.240 crore in FY24, Rs 49.125 crore in FY25 and Rs 94.271 crore in FY26. Within material consumption, yarn was nil in FY24, Rs 11.655 crore in FY25 and Rs 132.673 crore in FY26. Fabric consumption moved from Rs 13.432 crore in FY24 to Rs 154.315 crore in FY25 before declining to Rs 103.205 crore in FY26; the notes do not assign either material category directly to a particular product-revenue line.

Other disclosed production-related costs also increased during the shift. Operating and manufacturing overheads rose from Rs 17.774 crore in FY24 to Rs 61.621 crore in FY26, including Rs 39.125 crore of job processing, job weaving and sizing charges in FY26, compared with nil in FY24. Purchases of finished fabric classified as stock in trade rose from Rs 0.536 crore in FY24 to Rs 7.897 crore in FY26.

What does the product shift show about revenue concentration and earnings?

Sona Selection became concentrated in products rather than broadly balanced between its two disclosed revenue categories. Products supplied Rs 427.508 crore, or 82.7%, of FY26 revenue from operations, while services supplied Rs 89.441 crore. In FY24, services were the concentrated category at Rs 107.329 crore, or 88.7%, of the Rs 120.979 crore total.

Profit after tax increased from Rs 13.095 crore in FY24 to Rs 18.563 crore in FY25 and Rs 34.023 crore in FY26. Profit before tax also rose, from Rs 16.945 crore in FY24 to Rs 48.052 crore in FY26, while total tax expense increased from Rs 3.850 crore to Rs 14.029 crore. These earnings changes occurred alongside product growth, but the disclosed notes do not provide profitability by products and services, so they do not establish the margin of either category.

Financing and asset-related charges also increased across the period. Finance costs rose from Rs 4.745 crore in FY24 to Rs 17.689 crore in FY26, including Rs 10.938 crore of working-capital loan interest in FY26. Depreciation and amortisation increased from Rs 6.797 crore in FY24 to Rs 19.033 crore in FY26, while ending inventory of finished goods, work in progress and finished fabric rose from Rs 12.819 crore in FY24 to Rs 55.558 crore in FY26.

What should readers watch in Sona Selection’s next financial update?

Sona Selection’s next financial update can show whether products remain above the FY26 share of 82.7% of revenue from operations and whether services remain below Rs 89.441 crore. The FY24-to-FY26 financial statements report a completed revenue-mix shift, but disclose no forward sales plan, customer breakdown or product-category revenue split. The available notes therefore do not identify the customers or individual products underlying the Rs 427.508 crore FY26 product-sales figure.

Readers can also compare future product revenue with inventories, materials and financing costs. FY26 cost of materials consumed was Rs 306.095 crore, closing inventory was Rs 55.558 crore and working-capital loan interest was Rs 10.938 crore. A later filing can establish whether sales growth, inventory levels and working-capital costs continue to move together; no forecast for those measures is disclosed in the supplied financial statements.

Conclusion

Sona Selection transferred its dominant revenue source from services to products in two years. Product sales rose by Rs 413.858 crore between FY24 and FY26, exceeding the Rs 395.970 crore increase in total revenue from operations because service revenue declined by Rs 17.888 crore. The result was an FY26 revenue base in which products supplied 82.7% of operating revenue.

The next reported financial statements should be assessed for continuity in the product share and for the associated inventory, material-consumption and working-capital figures. The supplied notes disclose no sales plan, customer concentration disclosure or product-level revenue split, leaving the durability and composition of the FY26 product-sales base unresolved.