Shankara Building Products Ltd is one of India's leading organized retailers of home improvement and building products. Operating under the brand "Shankara BuildPro," the company caters to a large customer base across various end-user segments in urban and semi-urban markets through a retail-led multi-channel approach. It has established itself as a significant player in the organized building materials retail sector, providing a comprehensive solution for construction and home improvement needs.
Originally incorporated as Shankara Pipes India Pvt Ltd on October 13, 1995, in Bengaluru, Karnataka, the company later converted to a Public Limited Company on August 28, 2007, under the name Shankara Pipes India Limited.
Shankara Building Products operates as an omnichannel marketplace for building products, dealing with a wide variety of materials. Its extensive product portfolio includes structural steel, cement, pipes and tubes, roofing solutions, welding accessories, primers, solar heaters, plumbing, tiles, sanitary ware, water tanks, plywood, kitchen sinks, and lighting.
The business operates through multiple segments, with retail being the primary revenue contributor. As of FY2025, the company boasts a network of 92 stores along with 32 fulfillment centers spread across 45 cities in 10 states and Union Territories, with a strong presence in Karnataka, Tamil Nadu, Kerala, Telangana, Andhra Pradesh, Pondicherry, and Goa. The retail segment contributed 52% of the total revenue in FY2025, compared to 56% in FY2023.
Shankara Building Products reported revenues of ₹52,701 million in FY2025, an increase of 9.0% compared to ₹48,337 million in FY2024. The company's revenue has shown substantial growth, rising from ₹20,446 million in FY2021 to ₹52,701 million in FY2025, achieving a Compound Annual Growth Rate (CAGR) of 26.7% over the past five years.
However, profitability faced challenges in FY2025. The net profit stood at ₹730 million, a decline of 10.0% compared to ₹811 million reported in FY2024. Operating profit margins also witnessed a fall, standing at 2.8% in FY2025 as against 3.1% in FY2024.
The company's recent quarterly performance shows mixed results:
* Q3 FY2024-25 (December 2024): Net profit declined by 17.41% to ₹17.69 crore, compared to ₹21.42 crore in Q3 FY2023-24. Sales, however, rose by 22.08% to ₹1437.16 crore, up from ₹1177.27 crore in Q3 FY2023-24.
* Q2 FY2024-25 (September 2024): Net profit declined by 16.47% to ₹15.21 crore, compared to ₹18.21 crore in Q2 FY2023-24. Sales increased by 16.36% to ₹1329.40 crore, up from ₹1142.49 crore in Q2 FY2023-24.
* Market Capitalization: ₹1,802 crore (as of March 2025)
* Revenue Growth (5-year CAGR): 26.7%
* Return on Equity (3-year average): 10.2% (low)
* 52-Week High Share Price: ₹750.15
* 52-Week Low Share Price: ₹444.40
* Dividend Yield: 0.40%
* Trailing Twelve-Month EPS: ₹30.1 (declined from ₹33.5 last year)
The Board of Shankara Building Products, at its meeting held on May 16, 2025, approved the appointment of Dhananjay Mirlay Srinivas (DIN: 09108483) as Whole-time Director of the Company for a term of five years, subject to shareholder approval at the ensuing Annual General Meeting.
CRISIL has assigned BBB+/Watch Developing and A2 ratings on ₹595 crore bank facilities to Shankara Building Products. The company's financial health reflects its market position, though it faces challenges from margin compression due to volatile raw material prices.
EBITDA margins fell to 2.84%, prompting a strategic focus on diversifying the product mix. The company plans to increase non-steel products from 10% to 20-25% over the next five years. Management remains cautiously optimistic about future performance, targeting a top-line growth of 20% for FY2026 and an EBITDA margin of at least 3%.
Promoter holding in Shankara Building Products Ltd increased marginally to 49.25% as of March 2025, from 49.22% as of June 2024, indicating stable promoter commitment to the business.
Despite facing profitability challenges due to market volatility and competitive pressures, Shankara Building Products continues to maintain its position as a leading organized player in the building materials retail sector. With its extensive retail network and diversification strategy, the company aims to strengthen its market position and improve financial performance in the coming years.
