Revenue and Operating Income Trends
Examining the net sales figures from March 2020 through March 2025 reveals a pattern of sharp rises and falls. The company’s revenue peaked at ₹97.80 crores in March 2022, followed by a steep decline to ₹42.87 crores by March 2025. Total operating income mirrored this trend, with no other operating income reported during these years. The fluctuations suggest episodic business cycles or market conditions impacting sales volumes and pricing power.
Cost Structure and Profitability
Banas Finance’s expenditure profile shows considerable variability, particularly in purchase of finished goods and manufacturing expenses. For instance, purchase costs rose from ₹0.73 crores in March 2020 to ₹44.69 crores in March 2025, while manufacturing expenses spiked notably in March 2023 before normalising. Other expenses also increased significantly in recent years, reaching ₹21.08 crores in March 2025.
Operating profit before depreciation and interest (PBDIT) excluding other income swung dramatically, from a loss of ₹1.22 crores in March 2020 to a high of ₹88.73 crores in March 2022, then plunging to a loss of ₹38.01 crores in March 2025. Including other income, operating profit followed a similar pattern. This volatility is reflected in operating profit margins, which ranged from a negative 19.7% in 2020 to a peak of 90.7% in 2022, before falling sharply to negative 88.7% in 2025.
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Profitability and Earnings Per Share
Profit before tax and net profit figures further illustrate the company’s inconsistent earnings. After a modest profit before tax of ₹2.14 crores in March 2020, the company surged to ₹91.64 crores in March 2022, only to suffer a loss of ₹37.45 crores by March 2025. Correspondingly, profit after tax peaked at ₹69.37 crores in 2022 but turned negative to ₹25.84 crores loss in 2025.
Consolidated net profit followed this pattern, with a high of ₹69.18 crores in 2022 and a loss of ₹19.57 crores in 2025. Earnings per share (EPS) reflected these swings, reaching ₹17.34 in 2022 before dropping to a negative ₹2.18 in 2025. The PAT margin similarly fluctuated from a robust 77.8% in 2021 to a negative 60.3% in 2025, underscoring the challenges in maintaining profitability.
Balance Sheet and Financial Position
On the balance sheet front, shareholder’s funds have generally increased over the years, rising from ₹81.20 crores in 2020 to ₹181.68 crores in 2025, supported by equity capital growth and reserves. Total liabilities have also grown but remain moderate relative to assets, with total debt decreasing from ₹11.20 crores in 2021 to under ₹1 crore in 2025, indicating a reduction in leverage.
Non-current investments have expanded significantly, reaching ₹136.85 crores in 2025, while current assets also increased to ₹168.02 crores. Cash and bank balances have fluctuated but remain healthy at ₹8.78 crores in 2025. Book value per share has declined from ₹61.09 in 2020 to ₹20.28 in 2025, reflecting the impact of earnings volatility and equity dilution.
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Cash Flow Analysis
Cash flow from operating activities has been inconsistent, with positive inflows in 2020, 2021, and 2022, but negative or zero in recent years. Investing activities have generally resulted in cash outflows, notably ₹38 crores outflow in 2025, reflecting ongoing investments or asset purchases. Financing activities have varied, with a significant inflow of ₹36 crores in 2025, possibly linked to equity issuance or debt restructuring.
Net cash inflow/outflow has been volatile, with a net outflow of ₹2 crores in 2025 after a small inflow in 2024. Closing cash and cash equivalents stood at ₹4 crores in 2025, down from ₹11 crores in 2022, indicating tighter liquidity conditions.
Summary of Historical Performance
Overall, Banas Finance’s historical performance is characterised by sharp fluctuations in revenue, profitability, and cash flows. The company achieved strong earnings and margins in 2021 and 2022 but faced significant setbacks in subsequent years. Despite these challenges, the balance sheet shows growth in shareholder funds and a reduction in debt, suggesting efforts to strengthen financial stability. Investors should weigh the company’s volatile earnings against its improving capital structure and cash position when considering its prospects.
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