Revenue Growth and Operating Performance
Candour Techtex’s net sales have shown a remarkable upward trend, rising from a modest ₹10.86 crores in March 2019 to ₹188.10 crores by March 2025. This surge reflects the company’s expanding market presence and operational scale. Notably, the period between March 2022 and March 2025 saw net sales consistently above ₹170 crores, indicating a stabilisation at a higher revenue base compared to earlier years.
The total operating income mirrors this growth, with no other operating income reported, underscoring the company’s reliance on core business activities. Raw material costs and purchase of finished goods constitute the bulk of expenditure, with purchases escalating in line with sales growth, reaching over ₹161 crores in the latest fiscal year. Employee costs and manufacturing expenses have also increased but remain proportionate to the company’s scale.
Operating profit before other income (PBDIT excl. OI) has improved from a low base of ₹0.37 crores in 2019 to ₹6.26 crores in 2025, reflecting better operational efficiency. When including other income, operating profit rose to ₹8.14 crores in the latest year, nearly doubling from ₹4.62 crores in 2024. However, operating profit margins remain modest, at 3.33% in 2025, indicating tight cost controls amid competitive pressures.
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Profitability and Earnings Trends
Profit before tax (PBT) has experienced volatility, with a notable dip into negative territory in March 2024 at -₹1.48 crores, before recovering to ₹1.32 crores in March 2025. Correspondingly, profit after tax (PAT) followed a similar pattern, registering a loss of ₹1.06 crores in 2024 but rebounding to a positive ₹0.67 crores in 2025. This fluctuation highlights challenges faced in certain years, possibly due to increased interest costs or operational inefficiencies.
Interest expenses have risen steadily, reaching ₹2.89 crores in 2025, which has weighed on profitability. Depreciation charges have also increased, reflecting capital investments over time. Despite these pressures, the company has maintained positive gross profit margins, though these have contracted from double-digit levels in earlier years to 2.79% in 2025.
Earnings per share (EPS) have mirrored the profit trends, with a peak of 1.36 in 2023 before a decline to 0.37 in 2025. The PAT margin remains slim at 0.36% in the latest fiscal year, underscoring the competitive and cost-sensitive nature of the business environment.
Balance Sheet and Financial Position
On the balance sheet front, shareholder’s funds have shown steady growth, with equity capital increasing modestly from ₹16.14 crores in 2019 to ₹17.96 crores in 2025, while reserves have nearly quintupled from ₹4.49 crores in 2021 to ₹21.36 crores in 2025. This accumulation of reserves indicates retained earnings and a strengthening equity base.
Total liabilities have decreased significantly from ₹56.48 crores in 2016 to ₹27.20 crores in 2017, with long-term borrowings remaining low at ₹0.27 crores in 2017. The company’s net block of fixed assets has increased, reflecting capital expenditure, while current assets have reduced from ₹49.60 crores in 2016 to ₹18.67 crores in 2017, suggesting a leaner working capital structure.
Cash flow from operating activities improved from ₹1.00 crore in 2016 to ₹2.99 crores in 2017, indicating better cash generation. Investing activities showed outflows consistent with asset purchases, while financing activities contributed a small inflow, resulting in a net positive cash flow and a closing cash balance of ₹8.07 crores in 2017.
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Summary and Investor Considerations
Candour Techtex’s historical performance reveals a company that has scaled its revenue base substantially over the past six years, albeit with fluctuating profitability and tight margins. The rebound in profits after a loss-making year in 2024 is a positive sign, though interest costs and depreciation continue to impact net earnings. The balance sheet reflects a cautious approach to debt, with a solid equity base and improving reserves.
Investors should note the company’s ability to generate operating cash flows and its ongoing capital investments, which may support future growth. However, the modest profit margins and earnings volatility suggest that operational efficiency and cost management will remain critical to sustaining profitability. Overall, Candour Techtex presents a mixed but improving financial profile that warrants close monitoring in the context of sector dynamics and competitive pressures.
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