Vedant Poly Fabs’ West Bengal share was 96.8% in FY26

Vedant Poly Fabs generated Rs 111.45 crore, or 96.8% of revenue, from West Bengal in the financial year ended March 31, 2026. Total revenue reached Rs 115.14 crore, but the rest of India contributed only Rs 3.68 crore, leaving the packaging maker dependent on one state for nearly all sales.

How concentrated was Vedant Poly Fabs’ FY26 revenue in West Bengal?

Vedant Poly Fabs’ FY26 revenue was concentrated in West Bengal, which contributed Rs 111.45 crore of the Rs 115.14 crore total for the year ended March 31, 2026. The rest of India generated Rs 3.68 crore, equivalent to the remaining 3.20% of FY26 revenue.

The company reported this geographic concentration as a business risk. Vedant Poly Fabs said political and geographical changes, growing competition, and changes in customer demand in eastern states could affect its ability to retain business and, consequently, revenue and profitability. The disclosure does not identify the individual states included within the Rs 3.68 crore rest-of-India category.

West Bengal dependence persisted through all three reported financial years. West Bengal accounted for 98.64% of revenue in FY24 and 97.90% in FY25 before its share declined by 1.10 percentage points to 96.80% in FY26. The rest-of-India share rose from 1.36% in FY24 to 3.20% in FY26, but remained a limited part of the revenue base.

What drove Vedant Poly Fabs’ FY26 revenue growth?

Vedant Poly Fabs’ FY26 growth came mainly from West Bengal. West Bengal revenue increased by Rs 32.13 crore from Rs 79.32 crore in FY25, while total revenue increased by Rs 34.12 crore from Rs 81.02 crore. Based on the disclosed geographic figures, West Bengal supplied about 94% of the total revenue increase between FY25 and FY26.

Revenue from the rest of India also grew, rising by Rs 1.98 crore from Rs 1.70 crore in FY25 to Rs 3.68 crore in FY26. That growth increased the non-West Bengal share by 1.10 percentage points, but West Bengal sales were still more than 30 times rest-of-India sales in FY26.

The two-year comparison similarly shows revenue growth without a substantial change in geographic concentration. From FY24 to FY26, total revenue rose by Rs 65.61 crore, including a Rs 62.59 crore increase in West Bengal revenue and a Rs 3.01 crore increase in revenue from the rest of India. A material reduction in state dependence would require non-West Bengal revenue to grow faster than West Bengal revenue over time.

Why does West Bengal dependence matter to Vedant Poly Fabs?

Vedant Poly Fabs’ dependence matters because a disruption in its main state market could affect a large share of sales at once. The company states that it cannot assure investors that it will generate the same quantum of business, or any business, from eastern states if competitive, political, geographical or demand conditions change.

The company’s disclosed manufacturing unit is also in West Bengal, at Digberia Road, Barasat, North 24 Parganas. Vedant Poly Fabs said it commenced operations before obtaining registration under the West Bengal Shops and Establishments Rules, 1964, but subsequently obtained the requisite registration; no proceedings had been initiated in relation to that matter as of the draft prospectus date.

Order practices add an operational consideration as revenue expands. Vedant Poly Fabs said it generally receives orders through verbal communications rather than formal written purchase orders or long-term contracts. The company said this can create risks relating to product specifications, quantities, printing requirements, delivery schedules and commercial terms, particularly as operations scale.

How do customer concentrations increase the exposure?

Vedant Poly Fabs’ geographic concentration occurred alongside higher customer concentration in FY26. Its top 10 customers generated Rs 79.95 crore, or 69.44% of FY26 sales, compared with Rs 24.43 crore, or 30.15%, in FY25. The top five customers accounted for Rs 69.05 crore, or 59.97%, of FY26 sales.

The prospectus does not state whether the top customers were based in West Bengal, so the disclosures do not establish a direct overlap between customer and geographic concentration. They do show that, in FY26, 69.44% of sales came from 10 customers while 96.80% of revenue came from one state. Vedant Poly Fabs identifies the loss of significant customers, lower orders, competition and changes in customer preferences as possible risks to sales and cash flow.

Supplier purchases were also concentrated in FY26. The top 10 suppliers accounted for Rs 88.29 crore, or 90.16%, of purchases, compared with Rs 41.35 crore, or 53.24%, in FY25; the top five represented 79.32% of FY26 purchases. Vedant Poly Fabs nevertheless said it procures raw materials from a wide range of suppliers based on price and quality.

What financial conditions could amplify a decline in regional business?

Vedant Poly Fabs’ working-capital position could amplify the effect of lower regional orders because inventory and trade receivables require funding. Net working capital, defined as current assets less current liabilities, was Rs 46.27 crore at March 31, 2026, compared with Rs 19.27 crore at March 31, 2025 and Rs 7.15 crore at March 31, 2024.

At March 31, 2026, trade receivables were Rs 28.38 crore, representing 45.36% of total current assets, while inventory was Rs 24.29 crore, or 38.83%. Vedant Poly Fabs reported negative operating cash flow of Rs 11.46 crore in FY26, following negative operating cash flow of Rs 5.74 crore in FY25.

The company attributed negative operating cash flow to changes in trade payables, other current liabilities, receivables, inventory, other current assets and short-term loans and advances. Trade payables declined to Rs 1.68 crore in FY26 from Rs 21.40 crore in FY25, while inventory rose by Rs 8.88 crore during FY26. For the working-capital cycle to operate as planned, sales from the principal market would need to translate into collections and inventory movement.

Conclusion

Vedant Poly Fabs increased total revenue from Rs 49.53 crore in FY24 to Rs 115.14 crore in FY26, but West Bengal supplied more than 96% of sales in each reported year. The rise in rest-of-India revenue from Rs 67.13 lakh in FY24 to Rs 3.68 crore in FY26 improved its share to 3.20%, without materially changing the company’s dependence on West Bengal.

The disclosed point to watch is Vedant Poly Fabs’ plan to attract new customers and tap untapped market segments to sustain and enhance revenue. The prospectus provides no state-by-state expansion target, timetable or non-West Bengal revenue target, so later geographic disclosures will show whether the FY26 3.20% rest-of-India share becomes a larger part of sales.