Revenue Growth and Operating Performance
Astal Lab's net sales have surged impressively from a modest ₹3.43 crores in the fiscal year ending March 2023 to ₹64.23 crores by March 2025. This exponential increase reflects the company's successful market penetration and scaling of operations. Total operating income mirrored this trend, rising from ₹3.43 crores to ₹64.23 crores over the same period, with no other operating income contributing to the top line.
Raw material costs have understandably escalated in line with revenue growth, reaching ₹61.81 crores in March 2025 from zero reported in earlier years, indicating a shift from purchasing finished goods to in-house production. The company also reported a significant negative change in stocks, suggesting inventory build-up to support expanding sales. Employee costs have risen steadily but remain a small fraction of total expenditure, reflecting operational efficiency.
Operating profit before depreciation and interest (PBDIT) excluding other income turned positive in March 2023 and expanded substantially to ₹12.77 crores by March 2025. The operating profit margin improved markedly to 19.88% in March 2025 from a negative margin in 2023, signalling enhanced cost management and operational leverage. Other income remained minimal but consistent, contributing marginally to overall profitability.
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Profitability and Earnings Metrics
Profit before tax (PBT) has shown a consistent upward trajectory, moving from near breakeven in 2023 to ₹11.98 crores in March 2025. Correspondingly, profit after tax (PAT) rose from a marginal ₹0.02 crores in 2023 to ₹8.93 crores in 2025, reflecting a PAT margin of 13.9% in the latest fiscal year. This improvement underscores the company's ability to convert sales growth into bottom-line gains effectively.
Earnings per share (EPS) have followed suit, increasing from a negligible 0.05 in 2023 to 9.07 in 2025, signalling enhanced shareholder value. The equity capital has remained stable at ₹9.85 crores since 2024, while reserves have expanded significantly, indicating retained earnings accumulation and strengthening net worth.
Interest expenses have risen modestly to ₹0.70 crores in 2025, reflecting some increase in borrowings, but remain manageable relative to operating profits. Depreciation charges have also increased in line with asset additions but have not materially impacted profitability.
Balance Sheet and Financial Position
Astal Lab's total assets have grown substantially from ₹9.91 crores in 2023 to ₹63.34 crores in 2025, driven by increases in both current and non-current assets. Notably, net block (fixed assets net of depreciation) expanded from a negligible ₹0.01 crores in 2023 to ₹11.44 crores in 2025, reflecting capital investments to support growth.
Current assets surged to ₹45.64 crores in 2025, with significant increases in inventories and sundry debtors, consistent with higher sales volumes. Net current assets improved to ₹18.87 crores, indicating a healthier liquidity position. Shareholders' funds have strengthened to ₹35.99 crores, supported by rising reserves.
On the liabilities side, total debt increased to ₹13.27 crores in 2025 from virtually no debt in prior years, with short-term borrowings constituting the majority. Trade payables and other current liabilities also rose in line with business expansion. The company maintains a low level of long-term borrowings, suggesting a cautious approach to leverage.
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Cash Flow Trends
Cash flow from operating activities has been negative in recent years, with outflows of ₹12 crores in 2025 and ₹5 crores in 2024, primarily due to working capital changes as the company builds inventory and receivables to support growth. Investing activities also show cash outflows, reflecting capital expenditure commitments. Financing activities provided some inflows, mainly through borrowings and equity infusion, but overall net cash flow was negative ₹17 crores in 2025, resulting in a decline in cash and cash equivalents to a negative ₹10 crores.
This cash flow pattern is typical for a rapidly expanding company investing in capacity and working capital, though it highlights the importance of monitoring liquidity and funding sources going forward.
Summary of Historical Performance
Astal Lab's historical performance reveals a company in transition from a nascent stage with negligible revenues and losses to a growing enterprise with strong revenue growth, improving profitability, and a strengthening balance sheet. The rapid increase in sales and operating margins, coupled with rising net profits and shareholder equity, indicates successful execution of growth strategies. However, the company faces challenges in managing working capital and cash flows, which have resulted in negative operating cash flows and increased short-term borrowings.
Investors should weigh the impressive top-line and bottom-line growth against the cash flow dynamics and rising debt levels. Continued focus on operational efficiency, working capital management, and prudent capital allocation will be critical for sustaining this positive momentum.
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