Snehaa Organics IPO

Snehaa Organics claims that the company invests in advanced infrastructure to ensure efficient and effective solvent recovery. It further states that its Y-type 2.5-stage sheet metal structured packings deliver lower pressure drops and higher mass transfer efficiency than conventional packings.

Located in Hyderabad, Telangana, Snehaa Organics claims that it benefits from access to a large and diverse market as well as an established supplier network. This strategic location supports easy access to essential resources, a skilled workforce, and customers, making logistics and business expansion more practical.

Over the past few years, the company has observed a consistent growth in its revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 13.65 crore in FY23 to Rs 23.72 crore in FY24 to Rs 26.22 crore in FY25. PAT increased from Rs 2.78 crore in FY23 to Rs 3.66 crore in FY24 and Rs 7.34 crore in FY25.

The company’s top 5 customers accounted for Rs 14.76 crore (56.27 percent) of the company’s total revenue in FY25, Rs 14.77 crore (62.25 percent) in FY24, and Rs 9.27 crore (67.88 percent) in FY23. The top 1 customer alone accounted for Rs 5.09 crore (19.43 percent) of the company’s total revenue in FY25, Rs 5.29 crore (22.32 percent) in FY24, and Rs 4.59 crore (33.66 percent) in FY23. The company does not have any binding agreement with any of these customers. The absence of such agreements may negatively affect the company’s ability to retain these clients. Therefore, any loss of any of these customers, or a decrease in business from them, could adversely affect the company’s operations and financial stability.

The company’s top 5 suppliers accounted for Rs 8.68 crore (69.95 percent) of the company’s total purchases in FY25, Rs 7.27 crore (64.75 percent) in FY24, and Rs 2.41 crore (44.45 percent) in FY23. Any disruption in supplies from one or more of these suppliers could adversely affect the company’s business and finances.

The company derives a significant portion of its revenue from Telangana. The region accounted for Rs 23.59 crore (89.98 percent) of the company’s total revenue in FY25, Rs 19.33 crore (81.52 percent) in FY24, and Rs 12.74 crore (93.34 percent) in FY23. Any adverse political developments, social unrest, or a downturn in the economic condition of this region could negatively impact the company’s operations and finances.

As of July 31, 2025, the company employed 59 people. Despite the small workforce, it has experienced high attrition rates over the past three years — 22.58 percent in FY23, 64.86 percent in FY24, and 24.56 percent in FY25. If the company fails to retain employees or reduce attrition, its work environment and operations could be adversely affected.

The company’s manufacturing operations are concentrated in a single facility located in Sangareddy, Telangana. Any disruption in this facility, whether due to regulatory actions, shutdowns, equipment failures, or industrial accidents, could negatively impact business operations and financial performance.

The company has a relatively short operating history, which may limit its ability to effectively implement growth strategies. Investors should note that this limited track record makes it challenging to assess the company’s past performance and predict its prospects.

The company depends on various chemicals required for trading its products. It does not have long-term supply agreements and instead procures chemicals on an order-to-order basis. Any significant increase in the cost of key chemicals or supply shortages could raise procurement costs and potentially affect the company’s profitability.

As of FY25, the company has a total indebtedness of Rs 9.08 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.