Revenue and Operating Performance
Cube Highways recorded a substantial increase in net sales, rising from nil in March 2023 to over ₹3,300 crores by March 2025. This growth reflects the company’s expanding operational scale and enhanced revenue generation capabilities. Total operating income mirrored this trend, reaching ₹3,307.14 crores in the latest fiscal year, up from ₹3,061.18 crores the previous year. The absence of raw material and purchase costs aligns with the company’s infrastructure-focused business model, where expenses are primarily related to employee costs, manufacturing, and other operational expenditures.
Operating expenses excluding depreciation decreased notably from ₹1,705.25 crores in March 2024 to ₹1,073.45 crores in March 2025, indicating improved cost management. Employee costs rose modestly to ₹51.47 crores, while manufacturing expenses declined to ₹818.88 crores. Selling and distribution expenses were eliminated in the latest year, further contributing to cost efficiency. These factors collectively boosted the operating profit before depreciation and interest (PBDIT) from ₹1,368.86 crores in March 2024 to ₹2,379.70 crores in March 2025, reflecting a robust operating profit margin of 67.54%.
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Profitability and Margins
Despite strong operating profits, Cube Highways has reported net losses in the last three fiscal years. The company’s profit before tax improved significantly from a loss of ₹686.85 crores in March 2024 to a narrower loss of ₹50.31 crores in March 2025. This improvement was driven by higher other income, which increased to ₹146.01 crores, and a rise in interest expenses from ₹873.13 crores to ₹1,117.10 crores, reflecting increased borrowings.
Depreciation expenses also rose to ₹1,312.91 crores in March 2025, impacting net profitability. Consequently, the company posted a net loss after tax of ₹35.72 crores in March 2025, a marked improvement from the ₹705.92 crores loss in the previous year. The net profit margin, while still negative, improved from -23.06% to -1.08%, signalling progress towards profitability.
Balance Sheet and Financial Position
Cube Highways’ total assets expanded from ₹24,601.43 crores in March 2024 to ₹27,935.78 crores in March 2025, driven by growth in net block assets and other non-current assets. The net block increased to ₹24,479.51 crores, reflecting ongoing capital investments. Shareholders’ funds declined slightly to ₹11,437.39 crores, influenced by accumulated losses and negative reserves.
Long-term borrowings rose substantially to ₹14,629.63 crores, indicating increased leverage to fund expansion. Current liabilities also increased moderately to ₹1,253.74 crores. The company’s book value per share adjusted stood at ₹83.37 in March 2025, down from ₹89.44 the previous year.
Cash Flow Trends
Cash flow from operating activities showed a strong upward trajectory, rising from ₹1,869 crores in March 2024 to ₹2,916 crores in March 2025. This improvement was supported by favourable changes in working capital and adjustments, resulting in a positive net cash inflow of ₹574 crores in the latest fiscal year, reversing the previous year’s outflow. Investing activities reflected reduced cash outflows, while financing activities saw increased outflows due to debt repayments and other financing costs.
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Summary and Outlook
Cube Highways has demonstrated significant operational growth and improved cost efficiencies over the past two years, reflected in rising revenues and expanding operating margins. While the company continues to report net losses, the narrowing of these losses and improved cash flow position suggest a positive trajectory towards sustainable profitability. The increase in borrowings underscores the capital-intensive nature of the business, but also supports ongoing asset growth and infrastructure development.
Investors should weigh the company’s strong operating fundamentals against the challenges of net profitability and leverage. The improving financial metrics and cash flow generation provide a foundation for cautious optimism as Cube Highways continues to expand its infrastructure portfolio.
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