Revenue and Operating Income Trends
Over the past seven years, Charter. Capital’s net sales have remained minimal and occasionally negative, reflecting a business model not primarily reliant on traditional sales revenue. Instead, the company’s total operating income has been predominantly driven by other operating income, which surged notably from ₹0.37 crore in 2019 to ₹9.36 crore in 2025. This substantial increase underpins the company’s growing operational scale and diversification of income sources.
Despite the low net sales, total operating income rose from ₹1.23 crore in 2019 to ₹9.35 crore in 2025, indicating a strong upward momentum. The absence of raw material costs and purchase of finished goods expenses suggests a service-oriented or investment-centric business model. Employee costs have gradually increased from ₹0.78 crore in 2019 to ₹1.45 crore in 2025, reflecting expansion in workforce or remuneration adjustments. Other expenses also rose moderately, reaching ₹2.04 crore in 2025.
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Profitability and Margins
Charter. Capital’s operating profit before depreciation, interest, and tax (PBDIT) excluding other income was negative in the early years, with losses recorded from 2019 through 2022. However, a marked turnaround occurred in 2023, with PBDIT turning positive and further strengthening in 2024 and 2025 to ₹8.26 crore. Other income contributed significantly, rising from ₹0.83 crore in 2019 to ₹2.40 crore in 2025, bolstering overall profitability.
Profit before tax (PBT) improved from a modest ₹0.73 crore in 2019 to ₹8.25 crore in 2025, with the company maintaining low interest expenses throughout. Profit after tax (PAT) followed a similar trajectory, recovering from losses in 2020 to reach ₹5.39 crore in 2025. Earnings per share (EPS) reflected this recovery, rising from negative values in 2020 to nearly ₹18 in 2025, signalling enhanced shareholder returns.
Balance Sheet Strength and Asset Quality
The company’s shareholder funds have expanded robustly, growing from ₹32.78 crore in 2020 to ₹167.65 crore in 2025, supported by consistent reserve accumulation. Book value per share has correspondingly increased from ₹108.84 to ₹556.69 over the same period, indicating substantial value creation for investors.
Charter. Capital maintains a debt-free status, with no long-term or short-term borrowings reported in recent years. Total liabilities have increased in line with asset growth, reaching ₹174.06 crore in 2025. The asset base is predominantly composed of current investments, which surged from ₹24.53 crore in 2020 to ₹152.28 crore in 2025, highlighting a strong liquidity position. Net block and fixed assets remain minimal, consistent with the company’s operational focus.
Cash Flow and Liquidity Analysis
Cash flow from operating activities has been volatile, with negative cash flows recorded in 2023 and 2025, contrasting with positive inflows in 2021 and 2024. Investing activities have generally contributed positive cash inflows, particularly in 2024 and 2025, reflecting strategic asset management or investment realisations. Financing activities have remained inactive, consistent with the company’s zero-debt stance.
Net cash inflow/outflow figures indicate a slight cash outflow in 2025, with closing cash and cash equivalents turning negative, a point warranting close monitoring. Nonetheless, the substantial current investments provide a strong liquidity buffer to support ongoing operations and growth initiatives.
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Summary and Outlook
Charter. Capital’s historical performance reveals a company transitioning from modest beginnings and early losses to a more stable and profitable entity. The significant growth in other operating income and reserves, coupled with a debt-free balance sheet and rising shareholder equity, underscores a strengthening financial foundation. However, fluctuations in cash flow and minimal net sales highlight areas for cautious observation.
Investors should note the company’s reliance on other operating income and investments as primary revenue drivers, which may influence future earnings volatility. The steady increase in earnings per share and book value per share suggests value creation, but the company’s operational model and cash flow dynamics warrant thorough analysis for long-term investment decisions.
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