Revenue and Profitability Trends
Ecoboard Inds.' net sales demonstrated considerable variability, peaking at ₹38.60 crores in March 2023 before declining sharply to ₹12.72 crores by March 2025. The total operating income mirrored this pattern, reflecting the company’s challenges in maintaining consistent top-line growth. Raw material costs, a significant expense component, fluctuated in line with sales, reaching a high of ₹20.45 crores in March 2022 and falling to ₹7.10 crores in the latest fiscal year.
Operating profitability has been under pressure for much of the period. The company reported operating losses excluding other income in most years, with a notable operating profit margin contraction to -71.23% in March 2025. Although other income provided some relief, the overall operating profit (PBDIT) remained negative in recent years, culminating in a loss of ₹8.04 crores in the latest fiscal year. Exceptional items further exacerbated the financial strain, contributing to a gross profit (PBDT) loss of ₹17.14 crores in March 2025.
Profit before tax and profit after tax followed a similar downward trajectory, with the company posting losses of ₹18.28 crores in March 2025. Earnings per share reflected this trend, declining from positive ₹6.32 in March 2021 to a negative ₹10.25 in the latest year. The profit after tax margin also deteriorated sharply, reaching -143.71% in March 2025, underscoring the company’s ongoing profitability challenges.
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Balance Sheet and Financial Position
The company’s balance sheet reveals a weakening financial position over the years. Shareholder’s funds declined from ₹15.12 crores in March 2021 to a negative ₹5.05 crores in March 2025, indicating erosion of net worth. Total reserves also deteriorated significantly, reflecting accumulated losses. Total liabilities decreased from ₹72.80 crores in March 2021 to ₹47.84 crores in March 2025, primarily due to reductions in long-term borrowings and current liabilities.
Long-term borrowings fell from ₹21.37 crores in March 2021 to ₹12.24 crores in March 2025, while short-term borrowings showed fluctuations, rising to ₹10.11 crores in the latest year. The company’s net block of fixed assets declined from ₹20.91 crores in March 2021 to ₹17.53 crores in March 2025, with capital work in progress increasing modestly to ₹5.23 crores. Current assets contracted from ₹48.03 crores in March 2021 to ₹23.83 crores in March 2025, with inventories and sundry debtors both showing marked decreases.
Net current assets turned negative in the latest fiscal year, signalling liquidity pressures. The book value per share also declined sharply, turning negative at ₹-2.83 in March 2025 compared to ₹8.48 in March 2021, reflecting the company’s deteriorating equity base.
Cash Flow Analysis
Cash flow from operating activities has been inconsistent, with the company generating positive cash flow only in select years such as March 2023. In the latest fiscal year, operating cash flow was negative at ₹-1.00 crore, indicating operational challenges. Investing activities showed net outflows in recent years, including a ₹-5.00 crore outflow in March 2025, reflecting ongoing capital expenditure or asset investments. Financing activities fluctuated, with a positive inflow of ₹6.00 crores in the latest year, possibly from borrowings or capital infusion, contrasting with outflows in prior years.
Overall, the net cash inflow/outflow remained neutral in recent years, but the company’s cash and bank balances have been minimal, underscoring tight liquidity conditions.
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Summary and Outlook
Ecoboard Inds. has faced significant financial headwinds over the past six years, with revenues peaking in 2023 before a steep decline, persistent operating losses, and a deteriorating balance sheet. The company’s negative equity position and shrinking cash reserves highlight ongoing challenges in sustaining operations and profitability. While some years showed brief improvements, the overall trend points to a need for strategic restructuring or capital infusion to stabilise the business.
Investors should carefully consider these historical performance factors alongside sector dynamics and alternative investment opportunities before making decisions related to Ecoboard Inds.
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