Revenue and Profit Growth Trajectory
Advanced Enzyme’s net sales have shown a robust upward trend, rising from ₹419.59 crores in March 2019 to ₹636.91 crores by March 2025. This represents a compound growth trajectory reflecting the company’s expanding market presence and operational scale. Total operating income mirrored this growth, with no other operating income reported during this period, indicating core business activities as the primary revenue source.
Profitability metrics reveal a nuanced picture. Operating profit before other income (PBDIT excl OI) peaked at ₹231.61 crores in March 2021 but moderated to ₹194.44 crores by March 2025. Including other income, operating profit (PBDIT) followed a similar pattern, reaching ₹240.46 crores in 2021 before settling at ₹227.48 crores in 2025. Despite this slight contraction, the company maintained a healthy operating profit margin of 30.53% in the latest fiscal year, down from a high of 46.15% in 2021 but still indicative of operational efficiency.
Profit after tax (PAT) also reflected this trend, with consolidated net profit increasing from ₹111.06 crores in 2019 to ₹131.12 crores in 2025. Earnings per share (EPS) followed suit, rising from ₹9.95 to ₹11.72 over the same period. The PAT margin, however, declined from 30.15% in 2021 to 21.03% in 2025, suggesting margin pressures possibly due to rising costs or competitive dynamics.
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Cost Structure and Expense Analysis
The company’s expenditure profile reveals rising raw material costs, increasing from ₹65.71 crores in 2019 to ₹161.96 crores in 2025, reflecting both volume growth and inflationary pressures. Employee costs also escalated steadily, reaching ₹141.54 crores in 2025 from ₹80.23 crores in 2019, signalling investment in human capital to support expansion. Other expenses similarly rose, from ₹80.20 crores to ₹149.07 crores over the same period.
Total expenditure excluding depreciation increased significantly, from ₹237.67 crores in 2019 to ₹442.47 crores in 2025, consistent with the company’s scaling operations. Despite these rising costs, Advanced Enzyme has managed to sustain positive gross profit margins above 35% in recent years, underscoring effective cost management and pricing strategies.
Balance Sheet Strength and Asset Growth
On the balance sheet front, shareholder’s funds have grown from ₹839.65 crores in 2020 to ₹1,420.86 crores in 2025, reflecting retained earnings accumulation and capital strengthening. Total reserves increased substantially, reaching ₹1,393.53 crores in 2025 from ₹656.52 crores in 2019, indicating robust internal capital generation.
Asset base expansion is evident, with total assets rising from ₹971.18 crores in 2020 to ₹1,611.15 crores in 2025. Net block of fixed assets nearly doubled from ₹315.46 crores in 2021 to ₹678.67 crores in 2025, signalling ongoing capital expenditure and capacity enhancement. Current assets also increased, supported by a significant rise in current investments from ₹121.31 crores in 2021 to ₹480.26 crores in 2025, enhancing liquidity.
Debt levels have remained moderate, with total debt at ₹21.54 crores in 2025, down from ₹25.11 crores in 2024, reflecting prudent leverage management. The company’s book value per share improved steadily, reaching ₹127 in 2025 from ₹86.90 in 2021, offering shareholders enhanced net asset backing.
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Cash Flow and Financial Flexibility
Advanced Enzyme’s cash flow from operating activities has remained stable, averaging around ₹140 crores annually in recent years, supporting operational needs and investment activities. Investing cash flows have been predominantly negative, reflecting capital expenditure and strategic investments, with ₹89 crores outflow in 2025. Financing activities have also seen outflows, primarily due to debt repayments and dividend payments.
Despite these outflows, the company maintained a healthy cash and bank balance of ₹107.69 crores in 2025, ensuring liquidity buffers. Net cash inflow/outflow fluctuated, with a slight outflow of ₹19 crores in 2025 following a positive inflow in the previous year, indicating active cash management aligned with growth initiatives.
Conclusion: A Consistent Growth Story with Margin Pressures
Overall, Advanced Enzyme’s historical performance reflects a consistent growth trajectory in revenue and profitability, supported by expanding asset base and strong equity capitalisation. While operating and PAT margins have moderated from peak levels, the company continues to generate solid returns and maintain financial discipline. Investors should note the rising cost pressures and margin compression but also the company’s ability to sustain growth and liquidity over the years.
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