Revenue and Profitability Trends
In the fiscal year ending March 2025, Atal Realtech reported consolidated net sales of ₹95.73 crores, with no other operating income contributing to total operating income. The company’s operating profit before depreciation, interest, and tax (PBDIT) stood at ₹7.81 crores, reflecting an operating profit margin of approximately 7.96%. Despite a healthy top line, the gross profit margin was relatively modest at 5.78%, indicating significant expenditure pressures.
Operating expenses included raw material costs of ₹37.75 crores and manufacturing expenses amounting to ₹68.20 crores, which together with other costs, resulted in total expenditure excluding depreciation of ₹88.11 crores. Interest expenses were ₹2.28 crores, and depreciation was ₹0.80 crores, leading to a profit before tax of ₹4.73 crores. After accounting for tax of ₹1.19 crores, the consolidated net profit was ₹3.54 crores, yielding a profit after tax margin of 3.7%.
Earnings per share (EPS) for the year was reported at ₹0.32, with a diluted EPS of ₹0.33, based on an equity capital of ₹22.20 crores and a face value of ₹2 per share.
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Balance Sheet and Capital Structure Evolution
Atal Realtech’s balance sheet shows a marked increase in shareholder’s funds, which rose from ₹27.35 crores in March 2020 to ₹67.30 crores by March 2025. This growth was supported by a rise in share capital from ₹4.63 crores to ₹22.20 crores over the same period, alongside fluctuating reserves that peaked at ₹45.09 crores in the latest fiscal year.
The company’s total liabilities increased from ₹54.07 crores in 2020 to ₹88.86 crores in 2025, with total debt rising to ₹15.83 crores. Notably, short-term borrowings have grown significantly, reaching ₹14.90 crores in March 2025, compared to ₹12.83 crores five years earlier. Long-term borrowings, however, have declined from ₹2.21 crores to ₹0.93 crores, indicating a shift in the debt profile.
On the asset side, total assets expanded from ₹54.07 crores in 2020 to ₹88.86 crores in 2025. Inventories have seen a substantial increase, rising from ₹11.40 crores to ₹58.00 crores, reflecting either stockpiling or expansion in operations. Cash and bank balances improved notably to ₹7.91 crores in 2025 from just over ₹2 crores in 2020, enhancing liquidity. Net block of fixed assets remained relatively stable, with a slight decrease from ₹4.80 crores to ₹4.50 crores.
Cash Flow and Working Capital Dynamics
Cash flow analysis reveals challenges in operating cash generation, with cash flow from operating activities turning negative to ₹-14.00 crores in 2025, compared to positive cash flows in prior years. This was largely due to a significant adverse change in working capital of ₹-20.00 crores, indicating increased investment in current assets or slower collections.
Investing activities remained neutral in the latest year, while financing activities contributed a positive cash inflow of ₹22.00 crores, likely reflecting fresh capital infusion or debt raising. The net cash inflow for the year was ₹7.00 crores, improving the closing cash balance to ₹7.00 crores.
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Summary of Historical Performance
Overall, Atal Realtech has demonstrated growth in revenue and equity base over the past five years, with shareholder funds nearly doubling. However, profitability margins remain modest, and the company faces working capital pressures that have impacted operating cash flows. The increase in inventories and short-term borrowings suggests a focus on expanding operations, though it also raises questions about inventory management and liquidity.
Investors should weigh the steady capital growth and improving cash reserves against the challenges in operational cash generation and relatively low profit margins. The company’s evolving debt profile, with a shift towards short-term borrowings, also warrants close monitoring in the context of interest costs and refinancing risks.
Atal Realtech’s book value per share has seen a decline from very high levels in earlier years to ₹6.06 in March 2025, reflecting changes in equity and reserves over time. This metric, alongside earnings per share, provides a useful gauge for assessing the company’s valuation and financial health.
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