Graphisads Limited — PPTs, 20-06-2025: Investor Presentation

1. Financial Highlights:

Graphisads reported revenue of ₹153.8 Cr for FY25, up 36% YoY, maintaining a strong 35% CAGR over FY21–25. Profit after tax rose to ₹8.4 Cr, improving margins modestly to 5%. However, gross margin declined to 20%, and EBITDA margin compressed sharply to 5% from higher COGS and expenses. PBT margin stood at 6%, aided by other income. The balance sheet shows net worth of ₹101.7 Cr, with total borrowings increasing somewhat to ₹23.7 Cr (long & short-term). Non-current assets rose to ₹64.9 Cr driven by capital work-in-progress, indicating ongoing capex. Trade receivables of ₹53.6 Cr and stable cash reserves of ~₹7.5 Cr reflect steady working capital position.

2. Strategic Initiatives & Growth Drivers:

Graphisads is aggressively expanding its digital/DOOH inventory, currently operating 450+ digital screens, including in premium assets like Vande Bharat trains and key railway stations, scaling digital revenues significantly (₹9.3 Cr in FY25 vs ₹3.4 Cr FY24). The company is driving vertical integration by building a full-stack media and creative solutions platform, including content production, event management, and digital marketing. Focus on multi-year government/PSU contracts ensures stable revenue. Targeting 20-25% annual growth through strategic acquisitions, ad-tech investments, and geographical expansion, with 25% digital revenue contribution target by 2030.

3. Business Developments:

The firm manages over 1,000 digital and traditional OOH assets, winning long-term contracts with government bodies, railways, and PSUs. Events business is a growing segment, with revenues reaching ₹18.3 Cr, driven by over 200 curated events and exhibitions, including marquee national level programs. The creative & print segment expanded to ₹72.2 Cr, supported by integrated ATL/BTL campaigns and in-house production capabilities. Cross-selling digital and events services to existing clients enhances monetization of relationships.

4. Market Position & Competitive Advantage:

Graphisads is one of the leading listed players in the highly fragmented Indian OOH market, with strong PAN-India presence and 80% asset utilization. Deep-rooted government empanelments (50+ ministries and PSUs) create significant entry barriers and recurring revenue streams. Its scale across street furniture, transit assets, and digital billboards in premium urban locations differentiates it. The company’s cloud-enabled, tech-driven approach for real-time advertising deployments offers an execution edge. Its integrated offering spanning creative, digital, events, and OOH media supports client stickiness and revenue diversification.

5. Investor Implications:

The combination of high-growth digital advertising, stable government contracts, and diversified service offerings presents positive growth potential. Margin pressure in FY25 warrants monitoring, but investments in digital expansion and vertical integration position the company well for long-term value creation. Execution risk related to the scale-up of new segments and further capex exists but appears manageable given Graphisads’ established market presence and client base. Retail investors should watch the ramp in digital and events revenues as key profitability drivers going forward.