Revenue and Profitability Trends
Over the seven-year period ending March 2025, Butterfly Gan Ap’s net sales demonstrated a peak in fiscal 2023 at over ₹1,050 crores, followed by a gradual decline to ₹864.50 crores in 2025. Despite this dip, the company maintained a solid operating profit margin, which stood at 7.55% in 2025, recovering from a low of 2.94% in 2024. The operating profit (PBDIT) excluding other income showed significant volatility, reaching a high of ₹96.52 crores in 2023 before settling at ₹65.25 crores in 2025.
Profit after tax (PAT) mirrored this pattern, with a notable peak of ₹51.67 crores in 2023, followed by a decline to ₹32.53 crores in 2025. The PAT margin, while fluctuating, improved to 3.76% in 2025 from a low of 0.79% in 2024, indicating a recovery in profitability. Earnings per share (EPS) also reflected these swings, peaking at 28.9 in 2023 and adjusting to 18.19 in 2025.
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Cost Structure and Operating Efficiency
The company’s cost of raw materials and purchases of finished goods have shown mixed trends, with raw material costs rising to ₹442.82 crores in 2025 from ₹316.64 crores in 2019, while purchases of finished goods decreased from ₹193.16 crores in 2023 to ₹78.71 crores in 2025. Employee costs increased steadily, reaching ₹104.33 crores in 2025, reflecting possible expansion or wage inflation. Other expenses remained substantial, though they declined from ₹216.60 crores in 2022 to ₹153.63 crores in 2025.
These cost dynamics contributed to the company’s ability to sustain operating profits despite revenue fluctuations. The gross profit margin improved to 7.75% in 2025, signalling better cost control compared to the 2.54% margin in 2024.
Balance Sheet and Financial Position
Butterfly Gan Ap’s balance sheet reveals a strengthening equity base, with shareholder’s funds rising from ₹192.68 crores in 2020 to ₹325.28 crores in 2025. The company successfully reduced its long-term borrowings to zero by 2025, down from ₹43.47 crores in 2020, indicating improved financial health and lower leverage. Short-term borrowings were also eliminated by 2025, further enhancing the company’s liquidity profile.
Current assets remained robust, with total current assets at ₹300.86 crores in 2025, supported by increased current investments of ₹84.48 crores, a significant rise from zero in earlier years. Inventories and sundry debtors showed some volatility but remained within manageable levels. The net current assets improved markedly to ₹170.46 crores in 2025, up from ₹44.30 crores in 2020, reflecting better working capital management.
Cash Flow and Liquidity
Cash flow from operating activities has been inconsistent, with a peak of ₹207 crores in 2021 but a decline to ₹33 crores in 2025. Investing activities consistently showed cash outflows, reflecting ongoing capital expenditure and investments. Financing activities also recorded net outflows in recent years, consistent with debt reduction efforts. The net cash position weakened to ₹9 crores by March 2025, down from ₹40 crores in 2024, signalling tighter liquidity but still positive cash reserves.
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Summary and Outlook
In summary, Butterfly Gan Ap’s historical performance reflects a company that has experienced cyclical revenue and profit fluctuations but has demonstrated resilience through improving margins and a stronger balance sheet. The elimination of debt and growth in shareholder equity are positive indicators of financial stability. However, the recent decline in sales and cash flow suggests the need for cautious monitoring of operational efficiency and market conditions.
Investors should weigh the company’s recovery in profitability and improved capital structure against the challenges of revenue volatility and liquidity tightening. The company’s ability to sustain growth momentum and manage costs will be critical in shaping its future trajectory.
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