Are Raaj Medisafe India Ltd latest results good or bad?

Raaj Medisafe India Ltd's latest financial results for FY25 demonstrate a significant transformation in its operational performance, showcasing a strong growth trajectory in both revenue and net profit. The company reported an annual revenue of ₹62.00 crores, reflecting a year-on-year growth of 44.2% from ₹43.00 crores in FY24. This growth is further underscored by a remarkable 5-year revenue compound annual growth rate (CAGR) of 64.38%, positioning Raaj Medisafe as a standout performer in the packaging sector. Net profit for FY25 doubled to ₹6.00 crores, up from ₹3.00 crores in FY24, resulting in a profit after tax (PAT) margin of 9.7%, which is an improvement from 7.0% in the previous year. This margin expansion indicates enhanced operational efficiency, despite rising interest costs, which increased to ₹2.00 crores from ₹1.00 crore in FY24. The operating profit margin (PBDIT) was reported at 12.9%, slightly lower than the 14.0% achieved in FY24, suggesting some pressure on operational efficiency as the company scales its operations. The company’s return on equity (ROE) remains exceptionally high at an average of 82.82%, indicating strong capital efficiency. However, it is important to note that Raaj Medisafe operates with a high debt-to-equity ratio averaging 1.77 times, which raises concerns regarding its leverage position. The balance sheet shows a significant increase in shareholder funds and fixed assets, reflecting ongoing capital investments to support growth. In the most recent quarter ending December 2025, Raaj Medisafe reported a net sales growth of 41.95% year-on-year, although this was a slight decline from the previous quarter's growth rate. The standalone net profit for the same period saw a substantial increase of 83.50%, indicating robust profitability amidst rising operational costs, including a notable increase in interest expenses. Overall, Raaj Medisafe India Ltd has demonstrated strong operational performance and growth potential, although its high leverage and recent technical trends warrant careful monitoring. The company has seen an adjustment in its evaluation, reflecting the ongoing assessment of its financial health and market positioning.