Kerala Ayurveda Reports Significant PAT Growth Amid Rising Interest Expenses and Non-Operating Income Concerns

Kerala Ayurveda, a microcap player in the Pharmaceuticals & Biotechnology sector, has released its financial results for the quarter ending June 2025. The results indicate a notable shift in the company's evaluation, with the score adjusting to -5 from -19 over the past three months.
The financial data reveals a significant growth in Profit After Tax (PAT), which reached Rs 1.99 crore, marking a 154.1% increase compared to the average PAT of the previous four quarters, which was Rs -3.68 crore. This positive trend in PAT suggests a favorable near-term outlook for the company.

However, there are areas of concern as well. The interest expense for the latest six months has risen to Rs 3.30 crore, reflecting a 186.96% increase over the previous half-year period, indicating a rise in borrowings. Additionally, the operating profit to interest ratio has reached its lowest point in five quarters at -5.11 times, highlighting challenges in managing interest payments. Furthermore, non-operating income has surged to Rs 9.47 crore, accounting for 337.01% of Profit Before Tax (PBT), raising questions about the sustainability of this income source.

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