Revenue and Profitability Growth
Between March 2018 and March 2025, Eiko Lifescience’s net sales surged from ₹2.34 crores to ₹37.66 crores, marking a substantial increase that underscores the company’s expanding market presence. Total operating income mirrored this growth, rising from ₹2.34 crores to ₹37.66 crores over the same period. Despite this impressive top-line expansion, the company’s profitability experienced fluctuations. Operating profit before depreciation and interest (PBDIT) excluding other income was positive at ₹0.35 crores in March 2018 but turned negative in the years leading up to March 2020, reflecting operational challenges. However, by March 2025, the company returned to profitability with a PBDIT of ₹2.76 crores, supported by an additional ₹0.72 crores in other income, resulting in an operating profit of ₹3.48 crores.
Profit before tax followed a similar pattern, moving from a modest ₹0.25 crores profit in 2018 to losses in 2019 and 2020, before rebounding to ₹2.92 crores in 2025. Correspondingly, profit after tax improved from ₹0.20 crores in 2018 to ₹2.18 crores in 2025, with consolidated net profit reaching ₹2.11 crores. Earnings per share (EPS) reflected this turnaround, rising from ₹0.51 in 2018 to ₹1.53 in 2025 after a dip into negative territory in 2019 and 2020. The operating profit margin excluding other income improved to 7.33% in 2025 from a negative margin in 2020, while the PAT margin also recovered to 5.79%.
Fundamentals that don't lie! This Small Cap from Trading shows consistent growth and price strength over time. A reliable pick you can truly count on.
- - Strong fundamental track record
- - Consistent growth trajectory
- - Reliable price strength
Cost Structure and Expenditure Trends
The company’s expenditure profile reveals that raw material costs have scaled in line with revenue, increasing from ₹0.76 crores in 2018 to ₹35.04 crores in 2025. Other expenses also rose but at a more moderate pace, with total expenditure excluding depreciation climbing from ₹1.99 crores in 2018 to ₹34.90 crores in 2025. Employee costs, after peaking in 2020 at ₹2.64 crores, were significantly reduced to ₹0.37 crores by 2025, indicating improved operational efficiency. The company reported no power or selling and distribution expenses in recent years, which may reflect a leaner cost structure or changes in accounting classifications.
Balance Sheet and Asset Growth
Eiko Lifescience’s balance sheet expanded considerably, with total assets rising from ₹10.95 crores in 2018 to ₹66.10 crores in 2025. Shareholder’s funds increased markedly from ₹5.56 crores to ₹56.79 crores, supported by a rise in reserves from a negative position in 2020 to ₹43.03 crores in 2025. The company’s gross block, representing fixed assets, grew substantially to ₹25.95 crores by 2025, with net block assets at ₹23.12 crores, reflecting ongoing capital investment. Non-current investments also increased, indicating strategic asset accumulation. Total liabilities rose in tandem but remained manageable, with long-term borrowings at ₹2.01 crores and total debt at ₹2.76 crores in 2025, suggesting a moderate leverage position.
Liquidity and Cash Flow Analysis
Current assets expanded from ₹5.98 crores in 2018 to ₹32.88 crores in 2025, driven by increases in inventories, sundry debtors, and cash and bank balances. Net current assets improved significantly to ₹26.61 crores in 2025, indicating stronger short-term financial health. Cash flow from operating activities was positive at ₹2.00 crores in 2025, while investing activities reflected an outflow of ₹11.00 crores, likely related to capital expenditure. Financing activities contributed ₹6.00 crores, supporting the company’s growth initiatives. Despite a net cash outflow of ₹1.00 crore in 2025, the closing cash and cash equivalents remained robust at ₹11.00 crores, underscoring prudent cash management.
Eiko Lifescience or something better? Our SwitchER feature analyzes this Microcap Specialty Chemicals stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Summary and Outlook
Overall, Eiko Lifescience’s historical performance reflects a company that has successfully navigated early operational losses to achieve sustained revenue growth and profitability by 2025. The significant expansion in assets and shareholder equity, coupled with improved margins and positive cash flows, suggests a strengthening financial foundation. While the company experienced challenges around 2019 and 2020, the recovery in earnings and operating efficiency is notable. Investors should consider these trends alongside sector dynamics and market conditions when evaluating Eiko Lifescience’s future prospects.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
