BharatRohan Airborne Innovations Limited

Consumer Defensive — Farm Products · BSE

₹95.00−₹3.10 (−3.16%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of BharatRohan Airborne Innovations Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

BharatRohan Airborne Innovations Limited, an agritech company, provides agri value chain solutions to agriculture farms, food companies, traders, consumers, and farmers.

IndustryFarm Products

SectorConsumer Defensive

Employees71

Annual revenue₹85 Cr

How does it make money?

Turns over ₹85 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 71 employees supports ₹1.20 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin17.1%

Net margin12.2%

Revenue / employee₹1.20 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%

ITC LTDP/E 16.6x · ROE 27.4%

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

What is its competitive advantage?Some evidence

ROCE of 15.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.2%

ROE16.7%

Peer median ROE51.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +1220% while net margin moved -56% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+1220%

Margin effect-56%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

61/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

15.8x

1.3Y Median

25.6x

15 monthly readings · mean 24.8x · range 19.3x–31.1x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 38% below its 1.3y median of 25.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 64% below the peer median of 43.3x.

vs. its own history

Cheap

25.6x median over 15 months · -38%

vs. sector peers

Cheap

43.3x median of 4 peers · -64%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

15.8x

P/B

2.16x

EV/EBITDA

12.3x

PEG

0.20

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 15.8x the stock trades 38% below its own median of 25.6x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Margins are compressing
EBITDA margin has slipped from 30.5% to 17.1% over 3 years.
Debt is rising
Total debt is up 159% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 54.5% to 12.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 41.5% to 15.2% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 192434% against revenue growth of 1220% — stock may not be moving.

Red Flags

6 items require attention · 6 high

🔴Debt has risen sharplyFinancial
Total debt is up 159% over 3 years, from ₹2 Cr to ₹4 Cr.
🔴High leverageFinancial
Debt/Equity of 4.50x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 13.4 points, from 30.5% to 17.1%.
🔴Inventory building faster than salesFinancial
Inventory up 192434% against revenue up 1220% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 38% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 64% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 30.5% to 17.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 4.50x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 54.5% to 12.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 102% a year✓ 136.4% CAGR
Latest reported year was 323.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 17.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹35 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 15.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹189 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.8x

Fair

Fairly valued against the generic band

P/B Ratio

2.16x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.03

Profitable

Profitable on a per-share basis

ROE

16.7%

Strong

Strong capital efficiency

ROCE

15.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.50x

High

High leverage

Revenue Growth (YoY)

323.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-33.4%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹39 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹95

ROA

11.9%

Good

Assets are working hard

Operating Margin

16.1%

Good

Healthy core-business profitability

Net Margin

12.2%

Good

Strong bottom-line conversion

Current Ratio

10.27

Comfortable

Healthy short-term liquidity

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

115.4 / 119.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

17.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6 Cr	₹19 Cr	₹28 Cr	₹85 Cr	+136.4%
EBITDA	₹2 Cr	₹7 Cr	₹10 Cr	₹15 Cr	+95.0%
EBITDA Margin	30.5%	38.8%	34.2%	17.1%	—
PAT (Net Profit)	₹2 Cr	₹7 Cr	₹9 Cr	₹10 Cr	+79.5%
EPS	₹0.91	₹3.47	₹4.68	—	—
ROE	54.5%	42.3%	24.9%	12.0%	—
ROCE	41.5%	39.8%	24.2%	15.2%	—
Total Debt	₹2 Cr	₹4 Cr	₹1 Cr	₹4 Cr	+37.4%
Free Cash Flow	₹1 Cr	-₹9 Cr	-₹5 Cr	-₹35 Cr	—

🟢 Revenue has grown at 136.4% a year over 3 years.

🟢 EBITDA has grown at 95.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 30.5% to 17.1% over 3 years (-13.4 pts).

🟢 PAT (Net Profit) has grown at 79.5% a year over 3 years.

🔴 ROE has fallen from 54.5% to 12.0% over 3 years (-42.6 pts).

🔴 ROCE has fallen from 41.5% to 15.2% over 3 years (-26.3 pts).

🔴 Total Debt has grown at 37.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹35 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹98 Cr

Total Liabilities

₹10 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

-₹28 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

8.2%

Insider Holding

56.1%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

6 general

BharatRohan Airborne Innovations Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

BharatRohan Airborne Innovations shareholders approve all AGM resolutions

scanx.trade, 01 Oct

Compare with

Equitymaster, 28 Sept

BHARATROHAN AIRBORNE INNOVATIO Share Price

Upstox, 05 May

BharatRohan Airborne reports 203% revenue growth in FY26, sets Sep 30 AGM

scanx.trade, 30 Sept

BharatRohan Airborne Innovations Ltd IPO Status, GMP, Price & Dates Today

Alice Blue, 25 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟡Financial HealthAdequate9.9/20

🟢GrowthStrong14.7/20

🟡ProfitabilityModerate9.5/15

🟢ValuationAttractive10.7/15

🔴RiskHigh2.5/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 6 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 102% a year136.4% CAGR
✓EBITDA margin holds above 15%17.1%
✗Free cash flow remains positive-₹35 Cr
✓Debt / EBITDA stays below 2x0.3x
✓ROCE stays above 12%15.2%