Revenue and Operating Performance Trends
Ajwa Fun World’s net sales have shown considerable volatility over the past seven years. The company recorded its highest net sales in fiscal 2019 at ₹4.02 crores, followed by a sharp decline in subsequent years, reaching a low of ₹0.27 crores in 2021. This downturn coincides with broader market disruptions and operational challenges. However, from 2022 onwards, the company demonstrated a recovery trajectory, with net sales rising to ₹2.70 crores by March 2025.
Other operating income, though generally minimal, contributed ₹0.40 crores in the latest fiscal year, enhancing total operating income to ₹3.10 crores in 2025 from ₹2.61 crores in 2024. This improvement reflects a gradual stabilisation in the company’s core business activities.
Operating profit margins have mirrored this recovery. After posting negative margins in 2020 and 2021, the company swung back to a positive operating profit margin of 39.63% in 2025, a significant improvement from 19.84% in 2024. This turnaround was driven by disciplined cost management, particularly in employee and other expenses, which collectively amounted to ₹1.46 crores in 2025, down from higher levels in previous years.
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Profitability and Earnings Analysis
Profit before tax (PBT) and profit after tax (PAT) have reflected the company’s operational challenges and subsequent recovery. Ajwa Fun World reported losses in 2020 and 2021, with PAT margins deeply negative at -105.38% and -366.67% respectively. The turnaround began in 2023, with PAT margin improving to 9.49%, and further strengthening to 11.11% in 2025. Correspondingly, earnings per share (EPS) moved from a negative ₹-3.07 in 2020 to a positive ₹0.47 in 2025, signalling restored profitability.
Exceptional items impacted the 2025 results, with a negative adjustment of ₹0.66 crores, yet the company managed to sustain positive gross and operating profits. Interest expenses have remained relatively low, averaging around ₹0.10 crores in recent years, aiding net profitability.
Balance Sheet and Financial Position
Ajwa Fun World’s balance sheet reveals persistent challenges in net worth and liquidity. Shareholder’s funds have remained negative throughout the period, standing at ₹-1.88 crores in 2025, reflecting accumulated losses and negative reserves. The company’s total liabilities increased to ₹12.85 crores in 2025 from ₹6.69 crores in 2024, driven largely by rising trade payables and borrowings.
Long-term borrowings emerged only in 2024 and 2025, reaching ₹4.31 crores in the latest fiscal year, all unsecured. Short-term borrowings have significantly reduced from ₹6.88 crores in 2021 to ₹0.17 crores in 2025, indicating some deleveraging efforts.
On the asset side, net block of fixed assets declined steadily from ₹3.48 crores in 2020 to ₹1.87 crores in 2025, suggesting asset depreciation or disposals. Current assets increased notably to ₹9.95 crores in 2025, largely due to a surge in other current assets and sundry debtors, though net current assets remain negative, indicating working capital constraints.
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Cash Flow and Liquidity Insights
Cash flow data indicates that Ajwa Fun World has generated positive operating cash flows in recent years, with ₹6.00 crores reported in 2025, up from ₹4.00 crores in 2023. This improvement is largely attributed to changes in working capital. However, investing activities have consistently absorbed cash, with ₹5.00 crores spent in 2025, reflecting ongoing capital expenditure or investments.
Financing activities have seen net outflows, including ₹1.00 crore in 2025, suggesting repayments or reduced borrowings. Despite these movements, the company’s closing cash and cash equivalents have remained negligible, underscoring tight liquidity conditions.
Summary of Historical Performance
Overall, Ajwa Fun World’s historical performance has been characterised by significant volatility in revenue and profitability, with a notable recovery phase beginning in 2022. While the company has managed to return to profitability and improve operating margins, its balance sheet remains under pressure with negative net worth and elevated liabilities. Cash flow improvements offer some optimism, but liquidity constraints persist. Investors should weigh these factors carefully when considering the company’s prospects.
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