Meghmani Organics Reports Strong Profit Growth Amid Rising Interest Expenses and Liquidity Concerns

Meghmani Organics, a player in the Pesticides & Agrochemicals industry, has recently undergone an evaluation adjustment that reflects notable shifts in its financial metrics. The company's score has been revised, indicating a change in its financial standing.
In the latest quarter ending September 2025, Meghmani reported a profit after tax (PAT) of Rs 11.55 crore, showcasing a significant growth rate of 145.2% compared to the previous four-quarter average. Additionally, net sales over the last six months reached Rs 1,190.88 crore, marking a growth of 24.34%. The return on capital employed (ROCE) for the half-year period stands at 7.30%, which is the highest recorded for the company.

However, there are areas of concern as well. Interest expenses for the latest six months have risen to Rs 53.25 crore, reflecting a growth of 65.37%. The profit before tax, adjusted for other income, has shown a decline, recorded at Rs -1.67 crore, which is a stark contrast to previous averages. Furthermore, the debtors turnover ratio has reached a low of 2.80 times, indicating potential liquidity issues.

Overall, the adjustments in Meghmani Organics' evaluation highlight a complex financial landscape, with both positive growth indicators and challenges that warrant attention.

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