Revenue and Profitability Trends
Brand Concepts’ net sales have exhibited a robust upward trend, surging from ₹42.79 crores in the fiscal year ending March 2021 to ₹291.92 crores by March 2025. This more than sixfold increase underscores the company’s expanding market presence and operational scale. Total operating income mirrored this growth, reflecting consistent business expansion without reliance on other operating income streams, which remained nil throughout the period.
Operating profit before depreciation, interest, and tax (PBDIT) also improved substantially, moving from a negative figure in 2021 to a positive ₹32.63 crores in 2025. Despite a slight dip in operating profit margin from 13.01% in 2023 to 10.8% in 2025, the company maintained healthy profitability levels. However, profit after tax (PAT) showed some volatility, peaking at ₹12.13 crores in 2024 before settling at ₹5.23 crores in 2025, with PAT margins reflecting this fluctuation, standing at 1.79% in the latest fiscal year.
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Cost Structure and Expense Analysis
The company’s expenditure profile reveals a significant rise in costs aligned with its revenue growth. Purchase of finished goods increased from ₹19.35 crores in 2021 to ₹125.09 crores in 2025, indicating higher inventory procurement to support sales. Employee costs more than quintupled over the same period, reflecting workforce expansion and possibly wage inflation. Other expenses also rose sharply, reaching ₹88.03 crores in 2025. Notably, raw material costs appeared only in recent years, contributing ₹20.35 crores in 2025, which may indicate diversification or vertical integration in operations.
Interest expenses increased from ₹5.59 crores in 2021 to ₹12.04 crores in 2025, signalling higher leverage, which is corroborated by the rise in total debt from ₹29.46 crores to ₹102.61 crores. Depreciation charges also escalated, consistent with the company’s growing asset base.
Balance Sheet and Asset Growth
Brand Concepts’ total assets expanded significantly, from ₹71.44 crores in 2021 to ₹267.71 crores in 2025. This growth was driven by increases in both fixed assets and current assets. Net block of fixed assets rose from ₹7.30 crores to ₹59.04 crores, while current assets more than doubled to ₹179.81 crores. Inventories and sundry debtors also increased substantially, reflecting the company’s scaling operations and working capital requirements.
Shareholders’ funds grew from ₹17.65 crores to ₹79.78 crores, supported by rising reserves, which climbed from ₹7.07 crores to ₹67.83 crores. The book value per share improved markedly, indicating enhanced net worth per equity share over the years.
Liabilities and Debt Profile
The company’s liabilities rose in tandem with asset growth. Total liabilities nearly quadrupled, with notable increases in both long-term and short-term borrowings. Long-term borrowings increased from ₹5.63 crores to ₹20.10 crores, while short-term borrowings surged from ₹23.83 crores to ₹82.51 crores. Other long-term liabilities also expanded significantly, suggesting increased financial obligations. Trade payables and other current liabilities rose steadily, consistent with the company’s operational scale.
Cash Flow and Financial Health
Cash flow from operating activities showed variability, with positive inflows in earlier years turning slightly negative in recent periods. Investing activities consistently reflected cash outflows, indicative of ongoing capital expenditure and asset acquisition. Financing activities demonstrated inflows in the latest years, likely to support expansion and working capital needs. Despite these fluctuations, the company maintained a stable cash and bank balance, which increased from ₹2.15 crores in 2021 to ₹9.63 crores in 2025.
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Summary of Historical Performance
Over the five-year period, Brand Concepts has transitioned from a loss-making entity to a profitable company with substantial revenue growth and asset expansion. While profitability margins have experienced some pressure recently, the overall trend remains positive. The company’s increasing leverage and rising interest costs warrant close monitoring, but the growth in reserves and book value per share reflect strengthening shareholder value. Working capital management appears to be a challenge given the rising inventories and receivables, which impacts operating cash flows.
Investors analysing Brand Concepts should weigh its impressive top-line growth and asset base against the volatility in profit margins and cash flow dynamics. The company’s strategic investments and financing activities suggest a focus on expansion, which could yield further growth if managed prudently.
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