Revenue and Profitability Trends
Over the past seven years, Abhinav Leasing’s net sales have exhibited significant volatility. Starting from a modest ₹6.28 crores in March 2019, the company saw a substantial surge to ₹74.42 crores by March 2021, followed by a decline and subsequent recovery to ₹39.20 crores in March 2025. This irregular pattern suggests exposure to cyclical market conditions or strategic shifts in business operations.
Operating profit margins, excluding other income, have remained thin throughout this period. The margin was negative in March 2022 but improved to a positive 0.54% by March 2025, indicating a gradual enhancement in operational efficiency. Despite this, gross profit margins have consistently been negative, reflecting challenges in managing cost of goods sold relative to revenue.
Profit after tax (PAT) margins have mirrored this cautious profitability, improving from a negative margin in 2019 to a modest 0.59% in 2025. Earnings per share have remained low but positive in recent years, reaching ₹0.05 in the latest fiscal year, signalling incremental value creation for shareholders.
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Balance Sheet and Asset Quality
Abhinav Leasing’s balance sheet reveals a stable equity base, with share capital consistently at ₹5 crores and reserves gradually increasing to ₹1.08 crores by March 2025. Shareholders’ funds have grown steadily, reaching ₹6.08 crores, reflecting retained earnings and capital accumulation.
The company maintains a debt-free status, with no long-term or short-term borrowings reported in recent years. This absence of debt reduces financial risk and interest burden, although interest expenses have been recorded, likely related to other financial obligations.
Non-current assets remain minimal, with net block values declining from ₹0.21 crores in 2022 to ₹0.07 crores in 2025, indicating limited fixed asset investment. Long-term loans and advances have fluctuated, peaking at nearly ₹53 crores in 2023 before reducing to ₹22.33 crores in 2025, suggesting changes in lending or investment activities.
Current assets have varied, with total current assets rising to ₹8.37 crores in 2025, supported by increased current investments. However, net current assets remain negative, indicating potential liquidity pressures or working capital management challenges.
Cash Flow and Operational Efficiency
Cash flow from operating activities has been inconsistent, with a positive inflow of ₹7 crores in the latest fiscal year following a negative outflow in 2023. Investing activities have also fluctuated, with significant outflows and inflows reflecting asset acquisitions and disposals or investment movements.
Financing activities have seen net outflows recently, contrasting with inflows in 2023, which may relate to capital restructuring or dividend payments. Overall, the company’s cash position remains modest, with closing cash and cash equivalents reported at zero in 2025, highlighting the need for careful liquidity management.
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Summary and Outlook
Abhinav Leasing’s historical performance reflects a company navigating through fluctuating revenues and tight profit margins, with a conservative balance sheet free of debt. The gradual improvement in operating and net margins, alongside steady growth in reserves, suggests cautious progress towards financial stability.
However, the persistent negative gross margins and negative net current assets highlight ongoing operational challenges. Investors should monitor the company’s ability to sustain revenue growth and improve cost management to enhance profitability and liquidity.
Given the company’s modest earnings per share and limited asset base, Abhinav Leasing appears to be in a phase of cautious consolidation rather than aggressive expansion. Its debt-free status and incremental reserve build provide a foundation for potential future growth, contingent on market conditions and strategic initiatives.
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