Revenue and Profit Trends
Over the seven-year period ending March 2025, Bajaj Healthcare’s net sales demonstrated considerable volatility. The company’s revenue peaked in fiscal 2022 at nearly ₹680 crores before contracting to ₹543 crores in 2025. This decline followed a sharp dip in fiscal 2024, where sales dropped to ₹473 crores from ₹646 crores in 2023. Despite these fluctuations, the firm maintained a generally upward trajectory compared to the ₹370 crores recorded in 2019.
Operating profit margins, excluding other income, have also seen a downward trend from a high of 20.75% in 2021 to 15.19% in 2025. This contraction reflects rising costs and operational pressures. The operating profit itself peaked at ₹143 crores in 2021 but fell to approximately ₹82 crores by 2025. Other income contributed positively in recent years, bolstering overall operating profit to ₹102 crores in 2025.
Profit before tax mirrored these trends, with a significant loss recorded in 2024, followed by a recovery to ₹46 crores in 2025. The profit after tax similarly swung from a loss of ₹14 crores in 2024 to a positive ₹43 crores in 2025, indicating a rebound in the company’s bottom line. Earnings per share reflected this volatility, plunging to a negative ₹30.36 in 2024 before recovering to ₹12.51 in 2025.
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Cost Structure and Margins
The company’s raw material costs have consistently represented a significant portion of total expenditure, rising from ₹291 crores in 2019 to ₹307 crores in 2025, despite fluctuations in sales. Employee costs have also increased steadily, reaching ₹57 crores in 2025 from ₹25 crores in 2019, reflecting possible expansion or wage inflation. Other expenses surged notably in 2025 to ₹117 crores, a sharp rise from ₹15 crores in 2020, which has pressured margins.
Operating profit margins have been under pressure, declining from double-digit highs in earlier years to below 16% in the latest fiscal year. The gross profit margin similarly contracted, highlighting the impact of rising input costs and operational expenses on profitability.
Balance Sheet and Financial Position
Bajaj Healthcare’s total assets grew substantially from ₹343 crores in 2020 to over ₹814 crores in 2025, signalling significant investment in fixed assets and working capital. The net block of assets increased from ₹162 crores in 2020 to ₹223 crores in 2025, indicating ongoing capital expenditure. Inventories and sundry debtors also expanded, with inventories rising to ₹162 crores and debtors to ₹252 crores in 2025, which may reflect higher production and sales on credit.
Shareholders’ funds have nearly doubled from ₹178 crores in 2020 to ₹466 crores in 2025, supported by accumulated reserves. However, total debt remains elevated at ₹223 crores in 2025, down from a peak of over ₹414 crores in 2023 but still significant relative to equity. The company’s book value per share improved to ₹142 in 2025 from ₹64 in 2020, reflecting enhanced net worth despite earnings volatility.
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Cash Flow and Liquidity
Cash flow from operating activities has been inconsistent, with a notable negative cash flow in 2023 but a positive ₹21 crores in 2025. Investing activities have consistently absorbed cash, reflecting ongoing capital investments, while financing activities have fluctuated, including a significant inflow in 2023 and outflows in other years. The company’s closing cash and cash equivalents stood at a modest ₹2 crores in 2025, down from ₹17 crores in 2023, indicating tight liquidity management.
Working capital changes have also impacted cash flow, with a large negative adjustment in 2025, suggesting increased investment in current assets or inventory build-up. Despite these challenges, Bajaj Healthcare has managed to maintain positive net current assets in recent years, supporting operational needs.
Outlook and Considerations
Overall, Bajaj Healthcare’s historical performance reveals a company navigating through periods of growth and contraction. While revenue and profitability have faced headwinds, the firm’s asset base and equity position have strengthened. Investors should weigh the company’s earnings volatility and debt levels against its capacity for recovery and expansion in the healthcare sector.
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