Revenue and Operating Performance Trends
Ajcon Global's net sales have experienced significant variation over the past seven years. After peaking at ₹47.83 crores in March 2021, revenues declined sharply to ₹16.60 crores by March 2025. The period between 2022 and 2025 saw a steep contraction, with sales dropping from ₹41.46 crores in 2022 to less than half that figure in 2023, before stabilising modestly in the subsequent years. This volatility is mirrored in the total operating income, which follows the same pattern given the absence of other operating income.
Operating expenses, particularly manufacturing costs, have closely tracked revenue movements. Manufacturing expenses fell from ₹41.26 crores in 2021 to ₹8.16 crores in 2025, reflecting the scale-down in operations. Employee costs have risen gradually from ₹2.29 crores in 2021 to ₹3.45 crores in 2025, indicating a relative increase in personnel expenses despite shrinking revenues. Other expenses also showed a moderate increase over the period.
Operating profit before other income (PBDIT) excluding other income peaked at ₹3.43 crores in 2022 but declined to ₹1.75 crores in 2025. Including other income, operating profit followed a similar trend, reaching ₹1.96 crores in 2025. Despite the revenue contraction, Ajcon Global maintained positive operating margins, with the operating profit margin excluding other income at 10.54% in 2025, a recovery from negative margins in 2020.
This week's disclosed pick, a Large Cap from NBFC, comes with precise Target Price and analysis. Check if you're positioned right for this opportunity!
- - Precise target price set
- - Weekly selection live
- - Position check opportunity
Profitability and Earnings Analysis
Profit before tax (PBT) and profit after tax (PAT) have shown considerable fluctuations. The company recorded a loss before tax in 2020 but returned to profitability in subsequent years, with PBT reaching ₹0.79 crores in 2025. PAT followed a similar pattern, with a loss of ₹1.54 crores in 2020 turning into a profit of ₹0.57 crores in 2025. The consolidated net profit stood at ₹0.54 crores in 2025, down from ₹1.25 crores in 2024 but a recovery from the losses seen earlier in the decade.
Earnings per share (EPS) have been volatile, reflecting the swings in profitability. EPS peaked at 3.56 in 2022 but declined sharply to 0.09 in 2025. The PAT margin improved from negative 5.47% in 2020 to 3.43% in 2025, indicating a gradual restoration of profitability despite the revenue decline.
Interest expenses have decreased from ₹1.89 crores in 2019 to ₹0.80 crores in 2025, contributing to improved net profitability. Depreciation charges remained relatively stable, averaging around ₹0.37 crores annually.
Balance Sheet and Financial Position
Ajcon Global's balance sheet reflects a stable equity base with share capital consistently at ₹6.12 crores. Shareholders’ funds increased steadily from ₹17.33 crores in 2020 to ₹25.14 crores in 2025, supported by rising reserves. Minority interest surged notably to ₹8.72 crores in 2025 from ₹1.46 crores in 2020, indicating changes in group structure or consolidation.
The company has maintained a debt-free position in terms of long-term borrowings throughout the period. However, short-term borrowings remain significant, though reduced from ₹19.07 crores in 2020 to ₹9.99 crores in 2025, signalling efforts to deleverage. Total liabilities have decreased marginally from ₹40.54 crores in 2020 to ₹40.00 crores in 2025.
On the asset side, net block of fixed assets has increased slightly to ₹1.65 crores in 2025, while non-current investments and long-term loans and advances have declined, reflecting asset optimisation. Current assets have contracted sharply from ₹13.47 crores in 2020 to ₹5.02 crores in 2025, with net current assets remaining negative, indicating working capital pressures.
Cash Flow and Liquidity
Cash flow from operating activities has been inconsistent, with a negative cash flow of ₹1 crore in 2025 following positive inflows in prior years. Financing activities contributed positively in 2025 with ₹1 crore inflow, contrasting with outflows in earlier years. The closing cash and cash equivalents stood at ₹1 crore in 2025, down from ₹2 crores in 2023 and 2022, suggesting tighter liquidity conditions.
Is Ajcon Global your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- - Better alternatives suggested
- - Cross-sector comparison
- - Portfolio optimization tool
Summary of Historical Performance
Over the analysed period, Ajcon Global has demonstrated resilience amid fluctuating revenues and profitability. The company’s ability to maintain positive operating margins and return to profitability after losses in 2020 is notable. However, the sharp decline in sales post-2021 and persistent negative net current assets highlight operational challenges. The reduction in short-term borrowings and stable equity base provide some financial stability, though liquidity remains a concern given the negative operating cash flow in the latest fiscal year.
Investors should weigh the company’s recovery in profitability against the volatility in revenue and working capital pressures. The historical data suggests a cautious outlook, with potential for improvement if revenue stabilises and cash flow strengthens.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
