Thakral Corporation Ltd FY2025 Financial Results: A Comprehensive Analyst Review

Thakral Corporation Ltd, a diversified SGX-listed company with operations spanning real estate, lifestyle distribution, and investments across Asia and Australia, reported its FY2025 results on 26 February 2026. The year was marked by transformative growth, exceptional profitability, and strategic developments, positioning Thakral for continued success.

Key Financial Metrics and Performance Highlights

Historical Performance Trends

• Net profit reached an all-time high in FY2025, surging by 493% YoY, driven by strong multi-segment growth, successful IPOs, and increased investment returns.
• Revenue grew 42% YoY, with the Lifestyle segment contributing approximately 86% of group revenue.
• Gross margin improved significantly by 8.7 percentage points to 27.5%, reflecting higher profitability and improved product mix.
• Net Asset Value per share doubled, reflecting robust value creation for shareholders.

Exceptional Earnings, IPOs, and Divestments

• FY2025 saw one-off gains from the IPOs of GemLife and The Beauty Tech Group, significantly boosting investment segment results.
• The Group recorded S\$153.8 million in segment results from investments, up 326% YoY, and S\$44.3 million from the Lifestyle segment, up 139% YoY.
• Divestment of a commercial property in Japan and partial divestment in The Beauty Tech Group also contributed to performance.

Balance Sheet Developments and Asset Revaluation

• Cash and bank balances more than doubled to S\$31.5 million due to repayment of debt notes and divestments.
• Financial assets at fair value through income statement rose sharply to S\$363.0 million (+435%), mainly due to revaluation of listed investments.
• Debt/equity ratio improved to 0.22 from 0.39, indicating deleveraging and a stronger balance sheet.

Dividends and Shareholder Returns

• Total dividend per share for FY2025 was 6.5 cents, representing a 4.1% yield at year-end price. The second interim dividend was 3.5 cents.
• Over the last five years, Thakral delivered an annualized total shareholder return of 43.24%, with a total return of over 500% (including reinvested dividends).

Segmental & Geographic Analysis

• Lifestyle Segment: High growth driven by DJI drones (exclusive distribution in 7 South Asian countries), Nespresso India (official distributor), and beauty & fragrance products in Greater China. Segment profits grew 36% YoY.
• Investment Segment: GemLife’s IPO and strong recurring income from Japanese commercial real estate. Stable recurring income from Japanese properties with occupancy near 99%.
• Geography: South Asia and Greater China showed the strongest revenue growth, with new product launches and expanded distribution footprints fueling demand.

Corporate Actions and Strategic Developments

• Acquisition: Thakral will acquire an additional 81.64% stake in TIL Investments (Gurugram, India real estate project) for S\$93.9 million, unlocking long-term value in India’s luxury real estate market.
• Revenue-Sharing Model: The Gurugram project’s innovative model allows Thakral to participate in revenue sharing while collaborators manage development costs, de-risking returns.
• IPO-Related Gains: Exceptional gains were realized from GemLife’s and The Beauty Tech Group’s IPOs, resulting in a one-off earnings spike. Core operational performance also remained robust across segments.
• Manufacturing Expansion: Entry into drone manufacturing in India via Bharat Skytech, with commercial launches expected in 2Q2026, supported by favorable government policies and incentives.
• Share Price Performance: The share price more than doubled from S\$0.79 (Feb 2025) to S\$1.75 (Feb 2026), underscoring strong market confidence.

Outlook and Forecasted Events

• Lifestyle segment is expected to continue its 25% growth trajectory in FY2026, supported by new product launches and geographic expansion.
• GemLife guides for a 20-27% increase in FY2026 EPS, underpinning confidence in recurring income streams.
• Profitability in Nespresso India is expected by FY2027, with further store openings and B2B partnerships underway.
• Continued policy support for domestic drone manufacturing in India positions Thakral to capitalize on a rapidly growing market.

Conclusion and Investment Recommendations

Overall Assessment: Thakral Corporation delivered an exceptionally strong FY2025, characterized by record-breaking earnings, successful strategic initiatives (notably the GemLife IPO and expansion in India), and robust balance sheet strengthening. The business is well-diversified, with multiple growth drivers across geographies and sectors. The outlook remains positive, with new projects, forecasted growth, and supportive macro policies.

• If you are currently holding the stock: Consider maintaining your position. The company’s strong fundamentals, recurring income base, and continued growth initiatives support further value creation. However, note that FY2025 included significant one-off gains from IPOs; future earnings may normalize, though growth drivers remain intact.
• If you are not currently holding the stock: Thakral’s attractive valuation (P/B 0.67x, strong NAV growth) and positive outlook make it a compelling candidate for addition to growth-oriented portfolios. Entry on pullbacks may offer a margin of safety, especially as core business momentum continues and recurring income streams are reinforced.

Disclaimer: This analysis is based solely on information disclosed in the FY2025 report. It does not constitute personalized investment advice. Investors should consider their own risk tolerance and investment objectives before making portfolio decisions.

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