Revenue and Profitability Trends
In the fiscal year ending March 2025, Arihant Academy reported net sales of ₹40.56 crores, with no additional operating income. The company’s total operating income matched this figure, reflecting a focused revenue stream. Operating expenses, excluding depreciation, amounted to ₹34.97 crores, primarily driven by employee costs of ₹7.46 crores and other expenses totalling ₹27.51 crores. Despite these costs, the firm achieved an operating profit before depreciation and interest (PBDIT) of ₹7.55 crores, bolstered by other income of ₹1.96 crores.
Interest expenses remained minimal at ₹0.03 crores, and after accounting for depreciation of ₹1.87 crores, the profit before tax stood at ₹5.65 crores. The company’s effective tax outgo was ₹1.26 crores, resulting in a consolidated net profit of ₹4.45 crores. This translated into a profit after tax margin of 10.8%, indicating healthy profitability relative to sales. Earnings per share (EPS) were reported at ₹7.34, reflecting solid returns for shareholders.
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Balance Sheet Strength and Asset Growth
Arihant Academy’s balance sheet reveals a robust expansion in shareholder funds, which surged from ₹1.78 crores in March 2020 to ₹25.04 crores by March 2025. This growth was supported by a rise in share capital from a nominal ₹0.01 crores to ₹6.06 crores, alongside reserves increasing to ₹18.99 crores. The company has effectively reduced its long-term borrowings to zero by March 2025, eliminating secured loans and thereby strengthening its financial position.
Total liabilities increased in line with asset growth, reaching ₹42.60 crores in March 2025 from ₹7.93 crores in March 2020. This was accompanied by a significant rise in total assets, which also stood at ₹42.60 crores in the latest fiscal year. Notably, the net block of fixed assets increased to ₹9.93 crores, supported by capital work in progress of ₹2.54 crores, indicating ongoing investments in infrastructure or capacity expansion.
Current assets rose substantially to ₹17.95 crores, with cash and bank balances improving markedly to ₹8.27 crores. The company’s net current assets, including current investments, remained positive, reflecting sound liquidity management. The book value per share has appreciated impressively from ₹4.03 in March 2020 to ₹41.36 in March 2025, underscoring enhanced shareholder value over the period.
Cash Flow and Financial Health
Cash flow analysis shows that Arihant Academy generated ₹5.00 crores from operating activities in the latest fiscal year, a significant improvement from previous years. However, investing activities reflected a cash outflow of ₹16.00 crores, likely due to capital expenditure and investments in non-current assets. Financing activities remained neutral, with no new borrowings or repayments recorded.
The net cash outflow of ₹11.00 crores during the year reduced the closing cash and cash equivalents to ₹8.00 crores, down from an opening balance of ₹19.00 crores. Despite this, the company maintains a comfortable liquidity position, supported by its strong operating cash flows and absence of debt.
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Summary of Historical Performance
Over the past five years, Arihant Academy has exhibited consistent growth in revenue and profitability, with net sales reaching over ₹40 crores and a profit after tax margin exceeding 10%. The company’s strategic reduction of debt and expansion of equity capital have fortified its balance sheet, while investments in fixed assets and capital work in progress signal a commitment to future growth. Cash flow from operations has improved steadily, although significant outflows in investing activities reflect ongoing expansion efforts.
Overall, Arihant Academy’s historical financial performance portrays a company on a positive trajectory, balancing profitability with prudent financial management and asset growth. Investors may find the company’s improving earnings per share and book value per share particularly encouraging, alongside its strong operating margins and liquidity position.
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