Revenue and Profit Growth
Bandaram Pharma’s consolidated net sales have nearly doubled from ₹18.73 crores in March 2023 to ₹36.96 crores in March 2025, reflecting a compound growth trend. This increase in sales was accompanied by a proportional rise in raw material costs, which grew from ₹16.05 crores to ₹30.96 crores over the same period. The company’s total operating income mirrored this growth, with no other operating income reported during these years.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income remained stable at ₹2.82 crores in both March 2024 and March 2025, up from ₹1.16 crores in March 2023. Including other income, operating profit edged slightly higher to ₹2.91 crores in March 2025. Despite the rise in sales, the operating profit margin saw a slight decline from 8.27% in March 2024 to 7.63% in March 2025, indicating some margin pressure possibly due to increased raw material and employee costs.
Profit before tax improved steadily from ₹0.33 crores in March 2023 to ₹1.32 crores in March 2025, while profit after tax rose from ₹0.26 crores to ₹0.99 crores in the same timeframe. Earnings per share (EPS) followed suit, increasing from ₹0.30 to ₹0.82, reflecting the company’s enhanced profitability and expanded equity base.
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Cost Structure and Margins
The company’s expenditure profile reveals that raw material costs remain the largest expense, accounting for the bulk of total expenditure which rose from ₹17.57 crores in March 2023 to ₹34.14 crores in March 2025. Employee costs have increased steadily, reaching ₹2.96 crores in the latest fiscal year, while other expenses also rose modestly to ₹1.53 crores. Notably, Bandaram Pharma reported no power, manufacturing, or selling and distribution expenses during these years, which may indicate a lean operational model or classification differences.
Interest expenses have decreased from ₹0.93 crores in March 2024 to ₹0.61 crores in March 2025, despite the company’s total debt rising from ₹14.20 crores in March 2023 to ₹17.15 crores in March 2025. This reduction in interest cost could be attributed to better debt management or refinancing at lower rates. Depreciation charges increased moderately, reflecting ongoing asset utilisation.
Balance Sheet and Financial Position
Bandaram Pharma’s shareholder funds have grown from ₹3.08 crores in March 2023 to ₹12.65 crores in March 2025, supported by an increase in equity capital from ₹3 crores to ₹12 crores and reserves rising to ₹0.65 crores. The company’s total liabilities have nearly doubled, reaching ₹38.92 crores in March 2025, driven by increases in both long-term borrowings (₹8.99 crores) and short-term borrowings (₹8.16 crores).
On the asset side, total assets expanded from ₹20.17 crores to ₹38.92 crores over the three years. Current assets, including inventories and sundry debtors, have grown significantly, with inventories rising to ₹8.51 crores and sundry debtors to ₹18.76 crores by March 2025. The net block of fixed assets declined slightly, indicating some depreciation outpacing new capital expenditure. Non-current investments and other non-current assets also increased, suggesting strategic asset additions.
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Cash Flow and Liquidity
Bandaram Pharma’s cash flow from operating activities has been negative in recent years, with outflows of ₹4 crores in March 2025 and March 2024, compared to ₹1 crore in March 2023. This reflects increased working capital requirements, as changes in working capital have become more negative, reaching ₹-7 crores in the latest fiscal year. Cash flow from investing activities was neutral in March 2025 after negative outflows in prior years, while financing activities consistently provided positive inflows, supporting the company’s capital needs.
Despite these cash flow challenges, the company maintained a stable cash and bank balance, though at a low level of ₹0.12 crores in March 2025. The net cash inflow/outflow was neutral in the last two years, indicating balanced liquidity management amid expansion.
Summary
Overall, Bandaram Pharma has shown commendable growth in sales and profitability over the past three years, with earnings nearly quadrupling. The company’s balance sheet has strengthened with increased equity and reserves, although rising borrowings and working capital demands present areas to monitor. Margins have experienced slight pressure, but the firm’s ability to sustain operating profits and reduce interest costs is encouraging. Investors should weigh these factors alongside sector dynamics when considering Bandaram Pharma’s historical performance and future prospects.
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