Revenue and Profitability Trends
Debock Industrie’s net sales demonstrated a strong upward trend from ₹20.20 crores in March 2019 to a peak of ₹146.41 crores in March 2023, reflecting robust growth over four years. However, this momentum sharply reversed in the fiscal year ending March 2025, with net sales plummeting to ₹2.89 crores, a drastic decline that signals operational disruptions or market challenges. Total operating income mirrored this pattern, peaking alongside sales before collapsing in the latest year.
Operating profit margins (excluding other income) were positive and improving from 8.27% in 2019 to a high of 13.87% in 2021, before moderating slightly in subsequent years. The company reported operating profits consistently until March 2024, when it recorded a negative margin of -46.37%, coinciding with the sharp revenue drop. This downturn was further exacerbated by exceptional items amounting to a negative ₹19.65 crores in March 2025, contributing to a substantial operating loss.
Profit after tax (PAT) followed a similar trajectory, with positive earnings from 2020 through 2024, peaking at ₹12.87 crores in March 2023. The fiscal year ending March 2025 saw a significant loss of ₹21.13 crores, reflecting the combined impact of reduced sales, increased expenses, and exceptional charges. Earnings per share (EPS) also declined sharply to -₹1.30 in 2025 from a peak of ₹2.90 in 2022, underscoring the company’s recent financial distress.
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Cost Structure and Expenses
The company’s cost of goods sold primarily consisted of purchases of finished goods, which scaled in line with revenue growth, reaching ₹117.09 crores in 2023 before falling sharply to ₹2.84 crores in 2025. Employee costs remained relatively stable, fluctuating modestly between ₹0.24 crores and ₹0.67 crores over the years. Other expenses showed some variability but did not significantly offset the revenue declines.
Interest expenses decreased over time, from ₹1.20 crores in 2019 to zero in 2025, reflecting a reduction in debt levels. However, the company’s exceptional items in 2025 severely impacted profitability, indicating possible one-off charges or restructuring costs.
Balance Sheet and Financial Position
Debock Industrie’s shareholder funds expanded substantially from ₹22.55 crores in 2019 to ₹214.74 crores in 2024, driven by equity capital increases and reserve accumulation. The equity capital itself rose markedly, reflecting capital infusion rounds, from ₹8.22 crores in 2019 to ₹162.74 crores in 2025. Reserves fluctuated but remained positive, supporting net worth growth.
Total liabilities increased from ₹46.67 crores in 2019 to ₹237.20 crores in 2024, with a notable reduction in long-term borrowings to zero by 2024, indicating debt repayment or refinancing. Short-term borrowings also declined to nil in 2024 after peaking in earlier years. The company’s total assets grew in tandem with liabilities, reaching ₹237.20 crores in 2024, supported by investments, loans, and capital work in progress.
Net block of fixed assets increased steadily, reflecting ongoing capital expenditure, while current assets rose significantly, driven by higher sundry debtors and inventories. However, the company’s cash and bank balances remained minimal throughout the period, suggesting limited liquidity buffers.
Cash Flow Analysis
Cash flow from operating activities was positive in most years but turned sharply negative in 2024, with a cash outflow of ₹106 crores, largely due to adverse changes in working capital. Investing activities consistently showed cash outflows, reflecting capital investments, while financing activities fluctuated, with a significant inflow of ₹111 crores in 2024, likely from equity issuance or debt restructuring. The net cash position remained largely unchanged, indicating tight cash management amid operational challenges.
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Summary and Outlook
Debock Industrie’s historical performance reveals a company that experienced rapid growth in sales and profitability through 2023, supported by expanding shareholder funds and controlled debt levels. However, the fiscal year ending March 2025 marked a severe reversal, with revenues collapsing to a fraction of prior levels and the company reporting significant losses driven by exceptional charges and operational setbacks.
The sharp decline in operating and net margins, coupled with negative cash flows from operations, highlights the challenges currently facing the company. While the balance sheet shows a strengthened equity base, the liquidity position remains constrained, and the recent financial results suggest a need for strategic reassessment.
Investors and market participants should closely monitor Debock Industrie’s forthcoming financial disclosures and management commentary to gauge recovery prospects and operational stabilisation. The company’s prior growth trajectory indicates potential, but recent volatility underscores the risks inherent in its current phase.
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