Revenue and Profitability Trends
Over the seven-year period ending March 2025, Ace Soft. Exp. has seen its net sales rise sharply from ₹8.00 crores in 2019 to ₹31.55 crores in 2025. This growth trajectory accelerated notably from 2023 onwards, with sales nearly tripling between 2023 and 2025. The company’s operating profit margin, which was negative in the early years—registering a low of -32.6% in 2020—has improved substantially, reaching 20.16% in 2025. This reflects a successful effort to control costs and enhance operational efficiency.
Profit after tax (PAT) also mirrors this positive shift. After enduring losses from 2019 through 2021, including a PAT margin of -29.76% in 2020, the company returned to profitability in 2023 and posted a robust PAT margin of 17.75% in 2025. Earnings per share (EPS) followed a similar pattern, moving from negative territory in earlier years to a positive ₹3.20 in 2025, indicating improved shareholder returns.
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Cost Structure and Expenditure
The company’s total expenditure excluding depreciation has generally tracked the rise in operating income, increasing from ₹9.17 crores in 2019 to ₹25.19 crores in 2025. Employee costs have been a significant component, rising from ₹3.14 crores in 2019 to ₹16.42 crores in 2025, reflecting possible expansion in workforce or wage inflation. Other expenses have also increased but remained relatively stable as a proportion of total costs. Notably, the company reported no raw material or finished goods purchase costs, suggesting a service-oriented or software-related business model.
Balance Sheet and Asset Growth
Ace Soft. Exp.’s total assets have expanded markedly, from ₹23.89 crores in 2020 to ₹104.47 crores in 2025. This growth is driven by increases in both fixed assets and current assets. The net block of assets surged from ₹8.34 crores in 2020 to ₹34.23 crores in 2025, supported by investments in intangible assets under development. Current assets, including cash and bank balances, have also grown substantially, with cash reserves rising from under ₹1 crore in 2020 to over ₹38 crores in 2025, indicating strong liquidity.
Shareholders’ funds have increased significantly, from approximately ₹19.33 crores in 2020 to ₹88.52 crores in 2025, reflecting retained earnings and equity infusion. The company’s equity capital doubled between 2024 and 2025, which may have contributed to the strengthened capital base. Long-term borrowings remain low, with a slight increase in 2025, while short-term borrowings rose to ₹4.97 crores, suggesting moderate leverage.
Cash Flow Dynamics
Cash flow from operating activities has been negative in recent years, with a ₹9 crore outflow in 2025, largely due to changes in working capital. Investing activities also show consistent outflows, reflecting ongoing capital expenditure and investments. However, financing activities have provided substantial inflows, particularly ₹50 crores in 2025, likely from equity or debt issuance, supporting the company’s expansion and liquidity position. The net cash inflow of ₹25 crores in 2025 has bolstered the closing cash balance significantly.
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Summary and Outlook
In summary, Ace Soft. Exp. has transitioned from a challenging financial position marked by losses and negative margins to a phase of robust growth and profitability. The company’s revenue has more than tripled in the last two years, accompanied by a strong recovery in operating and net profit margins. Its balance sheet has strengthened considerably, with increased equity and cash reserves, while maintaining manageable debt levels. Despite negative operating cash flows, the company’s financing activities have supported its growth initiatives effectively.
Investors analysing Ace Soft. Exp. should note the company’s impressive turnaround and expanding asset base, balanced against the need for continued operational cash flow improvement. The recent equity capital increase and strong liquidity position provide a solid foundation for future growth prospects.
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