SINGAPORE |CREDIT PROFILE
- PATMI rose to S$171mn (+493% YoY) in FY2025, largely driven by a S$128.5mn fair value gain following the IPO of two investments. Excluding this, EBITDA increased to S$56mn (+122% YoY), driven by stronger performance in the Lifestyle segment where core profit +36% YoY to S$14.8mn. Management guides ~25% growth in the Lifestyle segment in FY2026, supported by retail expansion across India and South Asia. The Lifestyle segment is the distribution of L’Oreal related beauty and fragrances in Greater China, DJI products across South Asia and Nespresso in India.
- Thakral listed two major investments in 2025 that are worth S$338.4mn (25Feb26). These entities are Australian Stock Exchange listed GemLife (S$304.8mn) and London Stock Exchange listed The Beauty Tech Group (S$33.6mn). We view these assets as a pool of liquidity that can be monetised to raise liquidity if required.
- EBITDA/interest exp improved to 12.7x (FY24: 5.7x), supported by stronger EBITDA. The leverage also improved with net debt/EBITDA declining to 0.74x (FY24: 2.02x) and net debt/equity to 0.11x (FY24: 0.24x). The improved coverage and lower leverage indicate a stronger capacity to service debt and accommodate additional funding if needed, particularly for its 21-acre mixed used development in Delhi.
Credit Performance Highlights
- PATMI rose to S$171mn (+493% YoY) in FY2025 (FY2024: S$29mn), mainly driven by a S$128.5mn fair value gain following the IPO of two investment. Excluding this one-off gain, underlying operating performance also strengthened, with EBITDA increasing to S$56mn (+122% YoY). The improvement was primarily driven by continued expansion of the Lifestyle segment, where the core operating profit of the segment increased 36% YoY to S$14.8mn. The segment generates earnings primarily from distribution of DJI products across South Asia, Nespresso distribution in India, and premium beauty and fragrance retail in Greater China, which continued to benefit from strong consumer demand.
- Thakral holds S$338.4mn of listed investments as at 26 Feb 2026, primarily comprising 16.8% stake in GemLife (S$304.8mn) and 6.04% stake in The Beauty Tech Group (S$33.6mn). These listed holdings could potentially be monetised to raise liquidity if required.
- The Lifestyle segment retails and distributes established global brands across beauty, fragrance and technology. Key brands include Maison Margiela, Atelier Cologne, Viktor & Rolf, Mugler, Ralph Lauren Fragrances, Yue Sai and Miu Miu. In South Asia, the Group distributes DJI products and Nespresso. The Group operates 65+ retail stores and counters in Greater China, supporting product demand and contributing to segment earnings.
- Looking ahead, management guides 25% Lifestyle segment growth in FY2026, supported by continued expansion in India and South Asia. Key drivers include (i) the planned 20–30 DJI retail store openings, (ii) expansion of Nespresso’s retail presence in India, and (iii) participation in India’s growing drone ecosystem through Bharat Skytech, which will commence in-house component manufacturing from May 2026. These initiatives should support continued earnings growth and enhance the scale of the Lifestyle segment. In our view, stronger earnings generation should support the Group’s debt-servicing capacity and interest coverage over time.
- Thakral is increasing its stake to 95.28% in a 21-acre mixed-use development site in Gurugram for S$93.9mn, with approximately 2.5mn sq ft of development potential across residential and healthcare components. The site is located within Delhi’s National Capital Region (NCR), one of India’s most active property markets. Gurugram has seen strong demand for high-end residential housing, with S$3.36bn of transactions for homes priced above S$1.4mn in 2025. Management expects the project to begin contributing cash flows in next 5–7 years. The healthcare component is expected to generate recurring rental income, while the residential component will provide revenue from the sale of housing units, diversifying the Group’s earnings base and supporting longer-term cash-flow visibility once stabilised.
- Credit metrics improved alongside stronger earnings. EBITDA/interest increased to 12.7x (FY24: 5.7x), indicating stronger capacity to service interest obligations. At the same time, leverage improved, with net debt/EBITDA declining to 0.74x (FY24: 2.02x) and net debt/equity to 0.11x (FY24: 0.24x), given EBITDA expansion and higher cash balances. We believe these metrics provides the group with headroom to accommodate additional funding needs and absorb moderate earnings volatility without placing immediate pressure on credit metrics.
Credit View:
We are positive on Thakral’s credit profile, supported by stronger earnings generation and lower leverage. EBITDA expansion, driven primarily by the Lifestyle segment, has materially strengthened credit metrics, with EBITDA/interest improving to 12.7x and net debt/EBITDA declining to 0.74x, indicating headroom for debt servicing. Looking ahead, earnings should remain supported by continued expansion of the Lifestyle platform, particularly through retail growth in India and South Asia and increasing participation in India’s drone ecosystem. In addition, the Group’s S$338.4mn listed investment asset provides meaningful asset backing and liquidity optionality, offering strong downside protection for creditors.
Company Background
Thakral Corporation Ltd has been listed on the SGX Mainboard since December 1995. The Group’s core business comprises a growing investment portfolio in Australia, Japan, and Singapore. Investments in Australia include the development and management of over-50s lifestyle resorts under the GemLife brand. The Japanese investment portfolio consists of landmark commercial buildings in Osaka, the country’s second-largest city. The Group currently manages 65 retail stores or counters – including 26 stores of L’Oreal-owned skin care brand Yue Sai – across its portfolio of brands in Greater China (including Mainland China, Hong Kong and Macau) and India. It serves customers directly through retail flagship stores, multi-brand speciality retailers, and e-commerce platforms. Furthermore, the Group makes strategic investments in new-economy ventures that complement its existing business relationships and networks, including serving as a cornerstone investor or participating in early-stage funding. These investments aim to harness potential synergies and explore new business opportunities.
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