Revenue and Profitability Trends
Akme Fintrade’s net sales have shown a robust upward trajectory, increasing from ₹67.09 crores in March 2022 to ₹98.58 crores by March 2025. This growth is complemented by a steady rise in other operating income, contributing to total operating income climbing from ₹67.45 crores in 2022 to ₹102.72 crores in 2025. The company’s operating profit margin, excluding other income, has expanded significantly, reaching 44.06% in the latest fiscal year compared to just 12.27% three years prior. This margin improvement reflects effective cost management, despite employee costs rising moderately from ₹7.30 crores to ₹10.78 crores over the same period.
Operating profit (PBDIT) surged from ₹8.29 crores in 2022 to ₹43.43 crores in 2025, underscoring enhanced operational efficiency. Profit before tax followed suit, rising from ₹7.59 crores to ₹42.89 crores, while profit after tax increased from ₹4.12 crores to ₹33.23 crores. Correspondingly, the profit after tax margin improved markedly from 6.14% to 33.71%, signalling stronger bottom-line performance. Earnings per share (EPS) also reflected this growth, with a rise from ₹1.89 in 2022 to ₹0.78 in 2025, noting that the EPS figure for 2023 was anomalously higher due to changes in equity capital.
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Balance Sheet and Financial Position
The company’s shareholder funds have nearly tripled over the past three years, rising from ₹136.84 crores in 2022 to ₹382.21 crores in 2025. This growth is driven by increases in equity capital and reserves, with reserves expanding from ₹115.03 crores to ₹339.53 crores. Total liabilities have also increased, reaching ₹673.53 crores in 2025 from ₹373.03 crores in 2022, largely due to a rise in short-term borrowings, which stood at ₹281.77 crores in 2025 compared to ₹230.06 crores three years earlier.
On the asset side, total assets have grown from ₹373.03 crores in 2022 to ₹673.53 crores in 2025. Notably, long-term loans and advances have increased substantially, indicating strategic investments or lending activities. The net block of fixed assets has also risen, reflecting capital expenditure and asset additions. However, the company’s net current assets remain negative, signalling a working capital deficit that has persisted over the years.
Cash and bank balances have improved significantly, rising from ₹1.92 crores in 2022 to ₹55.98 crores in 2025, which may provide liquidity comfort despite the working capital challenges. The company’s book value per share has shown fluctuations, with an adjusted figure of ₹8.75 in 2025, reflecting changes in equity structure and reserves.
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Cash Flow Analysis
Examining cash flow trends reveals some volatility. Profit before tax has increased steadily, but cash flow from operating activities turned negative in the latest two years, with a significant outflow of ₹177 crores in 2025. This is largely due to adverse changes in working capital, which saw a sharp negative movement of ₹210 crores in 2025. Cash flow from investing activities was negative in 2025, indicating ongoing investments or asset purchases. Conversely, cash flow from financing activities was strongly positive in 2025 at ₹222 crores, suggesting the company raised funds through borrowings or equity to support operations and investments.
Despite these challenges, the net cash inflow was positive at ₹9 crores in 2025, improving the closing cash and cash equivalents to ₹18 crores. This indicates some liquidity improvement, although the negative operating cash flow and working capital pressures warrant close monitoring.
Summary
Overall, Akme Fintrade has exhibited strong revenue growth and improved profitability over the past three years, supported by expanding operating margins and rising net profits. The company’s balance sheet has strengthened with increased shareholder funds and asset base, though elevated borrowings and negative working capital remain areas of concern. Cash flow dynamics highlight the need for careful management of operational liquidity. Investors should weigh these factors alongside sector conditions and company strategy when considering Akme Fintrade’s historical performance and future prospects.
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