How has been the historical performance of Advait Energy?

Revenue and Profit Growth

Over the seven-year period ending March 2025, Advait Energy’s net sales surged from ₹28.04 crores in 2019 to ₹397.66 crores in 2025, reflecting a compound growth that underscores the company’s expanding market presence. Total operating income mirrored this trend, rising consistently each year without any contribution from other operating income, indicating a pure reliance on core business activities.

Operating profit before depreciation and interest (PBDIT) excluding other income increased markedly from ₹3.87 crores in 2019 to ₹51.17 crores in 2025. Including other income, operating profit reached ₹58.13 crores in the latest fiscal year, up from ₹4.35 crores six years prior. This growth was accompanied by a rise in profit before tax from ₹3.62 crores in 2019 to ₹45.86 crores in 2025, while profit after tax climbed from ₹2.10 crores to ₹33.24 crores over the same period.

Profit Margins and Efficiency

Advait Energy’s operating profit margin, excluding other income, has fluctuated but generally improved, peaking at 17.31% in 2024 before settling at 12.87% in 2025. Gross profit margins have remained relatively stable, averaging around 13-15%, which indicates consistent cost management despite rising raw material and manufacturing expenses. The profit after tax margin also showed resilience, maintaining above 7% in most years, with a slight dip to 8.36% in 2025 from 10.48% in 2024.

Raw material costs and purchase of finished goods have increased in line with sales growth, with raw material costs rising from ₹18.62 crores in 2019 to ₹99.91 crores in 2025, and purchases of finished goods showing a notable jump in recent years. Employee costs and manufacturing expenses have also scaled up, reflecting the company’s operational expansion.

Balance Sheet and Financial Position

The company’s shareholder funds have grown substantially, from ₹19.37 crores in 2020 to ₹202.38 crores in 2025, supported by rising reserves which reached ₹186.13 crores. Equity capital has also increased, reflecting possible capital raises or share issuances. Total liabilities have expanded commensurately with business growth, reaching ₹492.16 crores in 2025, with long-term borrowings rising to ₹33.49 crores and current liabilities increasing significantly, particularly trade payables and short-term borrowings.

Advait Energy’s asset base has expanded robustly, with total assets increasing from ₹51.56 crores in 2020 to ₹492.16 crores in 2025. Notably, current assets have grown sharply, driven by increases in sundry debtors and cash and bank balances, which stood at ₹96.06 crores in 2025. The company has also invested in non-current assets, with net block rising to ₹44.23 crores, indicating ongoing capital expenditure and asset accumulation.

Cash Flow Trends

Cash flow from operating activities has shown improvement, reaching ₹46 crores in 2025 after a negative outflow in 2024. Investing activities have consistently been cash outflows, reflecting capital investments, with ₹93 crores spent in 2025. Financing activities have provided substantial inflows, particularly in recent years, supporting the company’s expansion and liquidity needs. The net cash inflow in 2025 was ₹52 crores, contributing to a strong closing cash balance of ₹96 crores.

Shareholder Returns and Valuation Metrics

Earnings per share (EPS) have shown a strong upward trend, rising from ₹5.6 in 2019 to ₹28.59 in 2025, reflecting improved profitability and earnings growth. The book value per share has also increased significantly, from ₹14.83 in 2021 to ₹182.03 in 2025, indicating enhanced net asset value and shareholder wealth creation over the years.

Overall, Advait Energy’s historical performance reveals a company that has successfully scaled its operations, improved profitability, and strengthened its financial position. While margins have experienced some variability, the consistent growth in revenue, profit, and shareholder funds highlights a positive trajectory. Investors should consider these trends alongside sector dynamics and market conditions when evaluating the company’s future prospects.

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