How has been the historical performance of Active Clothing?

Revenue and Profitability Trends

Active Clothing’s net sales have shown a robust upward trend, climbing from ₹154.49 crores in March 2019 to ₹296.15 crores by March 2025. Despite a dip in fiscal 2021, likely influenced by broader market disruptions, the company rebounded strongly with a near doubling of sales by 2025. Operating profit (PBDIT) excluding other income also improved significantly, rising from ₹16.20 crores in 2019 to ₹27.52 crores in 2025, reflecting enhanced operational efficiency. The operating profit margin, while fluctuating, remained healthy with a recent figure of 9.29% in 2025, indicating consistent cost management amid rising revenues.

Profit after tax (PAT) has followed a similar positive trajectory, increasing from ₹3.06 crores in 2019 to ₹8.45 crores in 2025. The PAT margin, though modest, improved from 1.98% to 2.85% over the same period, signalling gradual strengthening of bottom-line profitability. Earnings per share (EPS) mirrored this growth, rising from ₹1.97 in 2019 to ₹5.45 in 2025, underscoring enhanced shareholder value creation.

Cost Structure and Margins

The company’s expenditure profile reveals a balanced mix of raw material costs, purchase of finished goods, and employee expenses. Raw material costs increased from ₹41.25 crores in 2019 to ₹82.78 crores in 2025, while purchases of finished goods rose from ₹74.15 crores to ₹151.41 crores in the same timeframe. Employee costs also nearly doubled, reflecting scaling operations and workforce expansion. Despite these rising costs, Active Clothing managed to maintain a gross profit margin around 5.78% in 2025, up from a low of 3.27% in 2023, indicating improved pricing power or cost efficiencies.

Interest expenses have increased from ₹5.99 crores in 2019 to ₹11.36 crores in 2025, consistent with the company’s rising debt levels. Nevertheless, the firm sustained positive gross profit before depreciation and tax, evidencing operational resilience.

Balance Sheet and Financial Position

Active Clothing’s total assets expanded from ₹133.73 crores in 2021 to ₹279.11 crores in 2025, reflecting investments in fixed assets and working capital. Net block of assets stood at ₹53.03 crores in 2025, with capital work in progress indicating ongoing expansion. Shareholders’ funds increased steadily to ₹77.38 crores by 2025, supported by rising reserves.

The company’s total debt rose from ₹53.59 crores in 2021 to ₹118.11 crores in 2025, with both long-term and short-term borrowings increasing to support growth initiatives. Current liabilities also grew, driven by higher trade payables and short-term borrowings, which is typical for a scaling manufacturing and retail business.

Cash Flow Dynamics

Cash flow from operating activities was positive in most years, peaking at ₹20 crores in 2024 before turning negative in 2025 at ₹-10 crores, largely due to working capital changes. Investing activities consistently reflected cash outflows, signalling ongoing capital expenditure. Financing activities showed mixed trends, with a notable inflow of ₹20 crores in 2025, likely from fresh borrowings or capital infusion. Overall, net cash inflow/outflow remained balanced, with closing cash and cash equivalents minimal but stable.

Summary and Outlook

Over the analysed period, Active Clothing has demonstrated commendable growth in sales and profitability, supported by a strengthening balance sheet and strategic investments. While rising debt and interest costs warrant monitoring, the company’s ability to expand margins and earnings per share suggests improving operational leverage. Investors should weigh these factors alongside sector dynamics and peer performance when considering Active Clothing’s future prospects.

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