Revenue and Profitability Trends
Darshan Orna's net sales have demonstrated a generally upward trend since 2019, with notable fluctuations. The company recorded net sales of ₹9.28 crores in March 2019, which dipped and surged intermittently, reaching ₹21.69 crores by March 2025. The period between March 2021 and March 2023 saw a significant jump from ₹6.02 crores to ₹13.10 crores, indicating a recovery phase. However, the sales figure in March 2020 was an outlier at ₹18.14 crores, followed by a dip in 2021.
Despite the growth in sales, Darshan Orna's operating profit margin excluding other income has been inconsistent, with negative margins in recent years. For instance, the margin was -0.83% in March 2025 and -1.29% in March 2024, contrasting with a positive margin of 0.76% in March 2023. This volatility reflects challenges in managing costs, particularly raw material expenses which often exceeded sales, as seen in March 2024 when raw material costs were ₹29.72 crores against sales of ₹20.87 crores.
Other income has played a crucial role in supporting operating profits, with a peak of ₹3.44 crores in March 2024. Consequently, the company reported a positive operating profit (PBDIT) of ₹0.63 crores in March 2025, despite operational losses excluding other income. Profit after tax (PAT) followed a similar pattern, with a high of ₹2.67 crores in March 2024 and a decline to ₹0.47 crores in March 2025. The PAT margin also reflected this variability, ranging from a robust 30.56% in March 2021 to a modest 2.17% in March 2025.
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Balance Sheet and Financial Position
Darshan Orna's balance sheet reveals steady growth in shareholder's funds, rising from ₹12.09 crores in March 2021 to ₹19.62 crores in March 2025. This increase is supported by reserves that grew from ₹2.09 crores to ₹9.62 crores over the same period, indicating retained earnings accumulation. The equity capital remained stable at ₹10.01 crores throughout these years.
The company has maintained a low level of long-term borrowings, with no secured or unsecured loans reported from 2019 to 2025. However, short-term borrowings have increased notably, from nil in March 2023 to ₹6.31 crores in March 2025, suggesting a reliance on working capital financing. Current liabilities also rose to ₹7.14 crores in March 2025, up from ₹0.24 crores in March 2021.
On the asset side, total assets nearly doubled from ₹12.33 crores in March 2021 to ₹27.12 crores in March 2025. This growth is largely attributable to current assets, which increased from ₹10.79 crores to ₹22.40 crores, driven by rising inventories and sundry debtors. Inventories surged from ₹10.01 crores in March 2021 to ₹18.79 crores in March 2025, reflecting stock accumulation. Non-current investments also expanded, reaching ₹4.71 crores in March 2025.
Cash Flow and Operational Efficiency
Cash flow from operating activities has been volatile, with a positive inflow of ₹11 crores in March 2024 contrasting with a negative outflow of ₹1 crore in March 2025. Investing activities consistently generated positive cash flow, peaking at ₹7 crores in March 2024. Financing activities showed a significant outflow of ₹18 crores in March 2024, likely reflecting debt repayments or capital restructuring.
Despite fluctuations, the company has managed to maintain a neutral net cash position over the years, with closing cash and cash equivalents reported as zero from 2019 through 2025. This suggests limited liquidity buffers and a potential focus on utilising cash efficiently within operations.
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Summary and Outlook
Darshan Orna's historical performance reflects a company navigating growth challenges amid fluctuating profitability and evolving financial structure. While sales have generally increased over the years, profitability margins have been inconsistent, impacted by high raw material costs and operational expenses. The balance sheet shows strengthening equity and reserves, but rising short-term borrowings indicate a need for careful working capital management.
Investors should note the company's reliance on other income to bolster operating profits and the variability in cash flows. The growth in inventories and receivables warrants close monitoring to ensure efficient asset utilisation. Overall, Darshan Orna presents a mixed financial picture with potential for improvement, contingent on stabilising margins and optimising capital structure.
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