Revenue and Profit Trends
Examining net sales, Axtel Industries experienced a notable increase from ₹110.75 crores in 2019 to a peak of ₹223.33 crores in 2024, before a decline to ₹178.56 crores in 2025. This volatility reflects market dynamics and operational challenges faced by the company. Despite this, the firm maintained a positive trajectory in operating profit (PBDIT), which rose from ₹19.88 crores in 2019 to a high of ₹47.23 crores in 2024, before settling at ₹28.50 crores in 2025. The operating profit margin mirrored this pattern, peaking at 19.72% in 2024 but easing to 13.35% in the latest fiscal year.
Profit after tax (PAT) followed a similar course, increasing from ₹12.96 crores in 2019 to ₹32.13 crores in 2024, then moderating to ₹18.03 crores in 2025. Correspondingly, the PAT margin fluctuated between 9.6% and 14.39%, indicating periods of both strong and moderate profitability. Earnings per share (EPS) reflected these trends, reaching nearly ₹20 in 2024 before adjusting to ₹11.16 in 2025.
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Cost Structure and Operational Efficiency
The company’s raw material costs have generally scaled with revenue, rising from ₹55.29 crores in 2019 to ₹113.51 crores in 2024, before decreasing to ₹77.09 crores in 2025. Employee costs have steadily increased, reflecting possible expansion or wage inflation, moving from ₹20.36 crores in 2019 to ₹40.41 crores in 2025. Other expenses also rose over the years, reaching ₹33.54 crores in 2024 before easing to ₹26.48 crores in 2025. These cost dynamics have influenced the operating margins and overall profitability.
Balance Sheet and Asset Growth
Axtel Industries’ total assets expanded significantly from ₹102.47 crores in 2020 to ₹185.47 crores in 2025, indicating asset base strengthening. Shareholders’ funds increased from ₹55 crores in 2020 to ₹122.58 crores in 2025, reflecting retained earnings and capital growth. The company has successfully reduced its debt burden, with total debt falling to zero by 2025 from ₹7.75 crores in 2020, enhancing financial stability and reducing interest expenses.
Net block assets, representing fixed assets net of depreciation, more than doubled from ₹12.85 crores in 2023 to ₹27.99 crores in 2025, signalling capital investments. Current assets remained robust, supported by substantial current investments and cash balances, which stood at ₹21.59 crores in 2025. The company’s book value per share has also appreciated steadily, rising from ₹34.05 in 2020 to ₹75.88 in 2025, underscoring value accretion for shareholders.
Cash Flow and Liquidity Position
Cash flow from operating activities has been positive in most years, peaking at ₹38 crores in 2024 before moderating to ₹31 crores in 2025. Investing activities have generally involved cash outflows, consistent with capital expenditure and asset acquisitions. Financing activities have seen net outflows, reflecting debt repayments and possibly dividend payments. Despite a slight net cash outflow in 2025, the company maintains a healthy cash and cash equivalents balance, supporting liquidity and operational needs.
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Summary of Historical Performance
Over the analysed period, Axtel Industries has shown resilience amid fluctuating market conditions. The company’s revenue and profit margins have experienced ups and downs, with a peak in fiscal 2024 followed by a correction in 2025. Cost management remains a critical factor, with raw material and employee expenses rising alongside operational scale. The balance sheet has strengthened considerably, marked by asset growth, debt reduction, and improved shareholder equity. Cash flow metrics indicate operational robustness, although investment outflows and financing repayments have impacted net liquidity.
Investors should note the company’s capacity to generate profits and maintain a solid financial foundation despite cyclical pressures. The steady increase in book value per share and positive operating cash flows are encouraging signs of sustainable growth potential.
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