Xpro India’s Q3 FY25 results reveal surprising growth despite global headwinds

Xpro India Limited, a key player in the polymer processing industry, has released its unaudited financial results for the third quarter of the fiscal year 2024-2025. Despite facing significant macroeconomic challenges, the company reported a robust 11.9% year-on-year revenue growth, highlighting its operational resilience and strategic adaptability. This growth comes at a time when global and domestic markets are grappling with subdued demand and pricing pressures, making Xpro India Limited‘s performance noteworthy within the manufacturing sector.

How did Xpro India achieve revenue growth despite economic challenges?

For the quarter ending December 31, 2024, Xpro India Limited posted revenues of ₹104.6 crore, reflecting an 8.8% increase from ₹96.1 crore in the same quarter of the previous year. This growth was largely driven by strong demand for the company’s dielectric films and increased customer offtake in the consumer durables segment. Over the nine-month period (April to December 2024), the company’s revenue surged to ₹377.1 crore, marking an 11.9% rise compared to ₹337 crore during the same period last year.

While revenue growth remained strong, profitability was under pressure. The company’s EBITDA fell by 30.3% year-on-year to ₹10.6 crore for Q3 FY25, primarily due to rising raw material costs, pricing pressures, and a shift in product mix. The profit after tax (PAT) also declined by 30% year-on-year, settling at ₹7.5 crore for the quarter. Despite these challenges, Xpro India Limited’s management remains optimistic, citing these pressures as temporary and manageable within the company’s long-term strategic framework.

What factors influenced Xpro India’s financial performance in Q3 FY25?

Xpro India Limited’s financial performance was shaped by a mix of external economic factors and internal operational strategies. The company faced pricing pressures due to volatile raw material costs and fluctuating demand in key markets. However, its ability to maintain steady production levels and manage inventory effectively helped offset some of these challenges.

Aggregate production volumes reached 22,860 metric tonnes, representing a 14.7% year-on-year increase despite no expansion in production capacity. This growth highlights Xpro India’s operational efficiency and ability to maximise output from existing infrastructure. The company’s dielectric films segment remained a strong performer, with dynamic pricing adjustments enabling it to maintain market share while onboarding new customers in anticipation of future capacity expansions.

In the consumer durables sector, Xpro India Limited reported a 24% year-on-year increase in customer offtake, reflecting resilient demand despite broader economic uncertainties. Additionally, improvements in inventory management and reduced debtor holding days contributed to operational efficiency, strengthening the company’s financial position.

How is Xpro India’s strategic expansion shaping its future growth?

Xpro India Limited’s growth strategy is underpinned by its ongoing expansion projects in India and the UAE. The Barjora project, which faced modest delays due to factors beyond the company’s control, is now at an advanced stage. Management expects regular operations to commence early in the next fiscal year, slightly later than initially planned. This expansion is critical to enhancing the company’s production capacity and meeting growing market demand.

Meanwhile, the company’s UAE project remains on track, with construction and supply chain activities progressing steadily. Xpro India Limited has ensured adequate capitalisation for this project, reinforcing its commitment to international growth and diversification. In addition, the company is exploring the feasibility of adding a new advanced production line, with operations tentatively scheduled for the fiscal year 2026-2027. This strategic move is part of a broader plan to strengthen its competitive position and respond proactively to evolving global market dynamics.

What is the outlook for Xpro India amid ongoing economic uncertainties?

Despite facing short-term challenges, Xpro India Limited is well-positioned for sustained growth. The company’s focus on operational efficiency, strategic expansions, and market diversification provides a solid foundation for future success. Management remains confident in its ability to navigate economic fluctuations, leveraging its strong brand equity and expertise in the polymer processing industry.

The company’s long-term growth prospects are supported by consistent demand for dielectric films, resilience in the consumer durables market, and strategic investments in capacity expansion. Additionally, Xpro India’s commitment to cost management and operational excellence is expected to drive profitability as market conditions stabilise.

Expert insights on Xpro India’s financial trajectory

Industry analysts note that while Xpro India’s profitability metrics were under pressure in Q3 FY25, the company’s strong revenue growth and strategic investments signal a positive long-term outlook. The temporary nature of current pricing pressures, coupled with anticipated benefits from upcoming capacity expansions, positions Xpro India for improved performance in the coming fiscal years.

Furthermore, the company’s proactive approach to managing external risks—such as supply chain disruptions and raw material volatility—demonstrates its agility and strategic foresight. As global economic conditions evolve, Xpro India Limited’s diversified portfolio and robust operational framework are likely to support continued growth and shareholder value creation.