Revenue and Operating Performance Trends
Adarsh Plant's net sales have demonstrated a gradual upward trajectory from ₹10.34 crores in March 2019 to a peak of ₹18.65 crores in March 2024, before a slight decline to ₹17.50 crores in March 2025. This growth reflects a steady expansion in the company's market presence over the six-year period. However, the total operating income mirrors this pattern without additional income streams, indicating reliance solely on core sales.
Raw material costs have consistently represented a significant portion of expenses, rising from ₹7.79 crores in 2019 to ₹12.55 crores in 2025, which has exerted pressure on margins. Employee and power costs have remained relatively stable, with employee expenses hovering around ₹0.66 to ₹0.92 crores and power costs near ₹0.23 to ₹0.25 crores, reflecting controlled operational overheads.
Other expenses have notably increased from ₹2.01 crores in 2019 to ₹3.92 crores in 2025, contributing to the overall rise in total expenditure, which surpassed total operating income in the latest fiscal year, resulting in an operating loss.
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Profitability and Margins
Operating profit (PBDIT) excluding other income has fluctuated considerably, with losses recorded in 2019 and 2025, and modest profits in the intervening years. The company posted a negative operating margin of -4.86% in March 2025, a sharp reversal from a positive 4.02% margin in the previous year. Gross profit margins have similarly declined, reaching -5.94% in 2025, indicating rising costs outpacing revenue growth.
Profit before tax and profit after tax have followed a similar pattern, with losses of ₹1.12 crores in 2025 contrasting with small profits in prior years. Earnings per share (EPS) reflect this volatility, swinging from a positive ₹0.49 in 2024 to a negative ₹1.13 in 2025. The absence of tax provisions throughout the period suggests the company has not been liable for tax payments due to its profit and loss profile.
Balance Sheet and Financial Position
Adarsh Plant's shareholder funds have remained modest, increasing from ₹0.51 crores in 2020 to ₹0.35 crores in 2025, though the figure declined in the latest year. The company’s reserves have been negative consistently, indicating accumulated losses. Total liabilities have decreased from ₹8.46 crores in 2021 to ₹7.93 crores in 2025, with total debt reducing from ₹6.20 crores to ₹4.25 crores over the same period, signalling some deleveraging efforts.
Long-term borrowings have gradually declined, while short-term borrowings have also reduced significantly from ₹5.71 crores in 2020 to ₹1.82 crores in 2025. Current liabilities remain substantial, but net current assets have improved, suggesting better working capital management. The net block of fixed assets has increased steadily, reflecting ongoing capital investment.
Cash Flow Overview
Cash flow data indicates limited activity, with no significant inflows or outflows reported in recent years. The company recorded a cash flow from operating activities of ₹1 crore in 2023 but has otherwise shown negligible cash movement, which may raise concerns about liquidity and operational cash generation.
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Summary and Investor Considerations
Over the past six years, Adarsh Plant has experienced moderate revenue growth but has struggled to maintain consistent profitability. Rising raw material and other expenses have compressed margins, culminating in losses in the most recent fiscal year. The balance sheet shows a company managing to reduce debt levels, yet still burdened by negative reserves and modest shareholder equity.
Investors should weigh the company's operational challenges against its efforts to stabilise liabilities and invest in fixed assets. The lack of significant cash flow generation and recent losses highlight the need for cautious analysis before considering investment. Monitoring future quarters for margin improvement and cash flow enhancement will be critical to assessing the company’s recovery prospects.
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