Revenue and Profitability Breakdown
BN Agrochem’s consolidated net sales surged dramatically from a modest ₹7.09 crores in the fiscal year ending March 2024 to ₹299.41 crores in March 2025, marking a substantial expansion in its operational scale. Prior to this, the company reported no sales in March 2023, indicating either a nascent stage or restructuring phase. The total operating income mirrored this growth trajectory, rising sharply to ₹299.41 crores in the latest year from just ₹7.09 crores the previous year.
Despite the impressive top-line growth, the company faced elevated raw material costs, which accounted for ₹281.34 crores in March 2025, closely aligned with the revenue figure, reflecting the commodity-intensive nature of its agrochemical business. Employee costs also increased moderately to ₹2.29 crores, while other expenses rose significantly to ₹53.09 crores, contributing to total expenditure (excluding depreciation) of ₹336.72 crores. This resulted in an operating loss before other income of ₹37.31 crores in March 2025, though this was an improvement from losses of ₹3.12 crores and ₹0.20 crores in the preceding years.
Crucially, BN Agrochem reported other income of ₹67.82 crores in the latest fiscal year, which turned the operating profit positive at ₹30.51 crores, a stark contrast to the negative operating profits in earlier years. After accounting for interest expenses of ₹8.70 crores and depreciation of ₹0.14 crores, the company posted a profit before tax of ₹21.66 crores, recovering from losses in the previous two years. The net profit after tax stood at ₹19.76 crores, translating into a positive earnings per share (EPS) of ₹2.02, compared to negative EPS in prior years.
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Balance Sheet and Financial Position
The company’s balance sheet has strengthened considerably alongside its operational growth. Shareholder’s funds expanded from a negative ₹0.55 crores in March 2023 to ₹391.42 crores in March 2025, supported by a rise in equity capital from ₹9.90 crores to ₹97.77 crores and reserves improving from a deficit to ₹293.64 crores. This improvement reflects successful capital infusion and retained earnings accumulation.
BN Agrochem’s total liabilities increased to ₹661.98 crores in March 2025 from negligible levels in earlier years, driven primarily by a rise in both long-term borrowings to ₹43.34 crores and short-term borrowings to ₹38.51 crores. Trade payables and other current liabilities also rose significantly, indicating expanded operational scale and working capital requirements. Total debt stood at ₹81.85 crores, a notable increase from ₹0.56 crores in March 2023.
On the asset side, the company’s total assets grew in tandem to ₹661.98 crores, with non-current assets comprising investments and long-term loans and advances amounting to ₹363.57 crores. Current assets, including sundry debtors and cash balances, rose sharply to ₹298.41 crores, supporting liquidity and operational needs. The book value per share improved markedly to ₹40.03 in March 2025 from negative values in previous years, signalling enhanced net worth and investor value.
Cash Flow and Operational Efficiency
BN Agrochem’s cash flow profile reflects the challenges and investments associated with its growth phase. Cash flow from operating activities was negative at ₹31 crores in March 2025, impacted by a significant working capital outflow of ₹104 crores. Investing activities also showed a substantial cash outflow of ₹290 crores, likely related to capital expenditure and long-term loans. However, financing activities provided a strong inflow of ₹328 crores, indicating successful capital raising to fund expansion.
Despite the negative operating cash flow, the company managed a net positive cash inflow of ₹6 crores in the latest fiscal year, improving its closing cash and bank balance to ₹6.71 crores. This suggests prudent cash management amid rapid growth and investment.
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Summary and Outlook
BN Agrochem’s historical performance reveals a company in transition, moving from negligible operations and losses to a profitable and expanding enterprise within a short span. The sharp increase in revenue and net profit in the fiscal year ending March 2025 underscores a successful turnaround, supported by improved operational efficiencies and other income streams. The strengthened balance sheet and positive book value per share further enhance the company’s financial stability.
However, the elevated expenditure levels and negative operating cash flow highlight ongoing challenges in managing costs and working capital. Investors should monitor the company’s ability to sustain profitability and convert earnings into cash flow as it scales. The recent capital infusion and borrowing indicate confidence in growth prospects but also introduce leverage considerations.
Overall, BN Agrochem’s financial journey over the past three years reflects a promising turnaround story with significant growth potential, balanced by the need for continued operational discipline and cash flow management.
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