How has been the historical performance of Euro India Fresh?

Revenue and Profitability Trends

Euro India Fresh’s net sales have shown a generally upward trend, rising from ₹71.58 crores in March 2019 to ₹143.74 crores by March 2025. Despite a dip in fiscal 2024 to ₹111.24 crores, the company rebounded strongly in 2025, nearly doubling its sales compared to six years prior. This growth reflects the company’s expanding market presence and operational scale.

Operating profit (PBDIT) excluding other income also improved significantly, climbing from ₹4.58 crores in 2019 to ₹13.39 crores in 2025. The operating profit margin increased from 6.4% in 2019 to 9.32% in 2025, indicating enhanced operational efficiency and cost management. Profit after tax (PAT) followed a similar pattern, rising from ₹0.88 crores in 2019 to ₹5.60 crores in 2025, with the PAT margin improving from 1.23% to 3.9% over the same period.

However, the company’s raw material costs have fluctuated, peaking at ₹97.44 crores in 2023 before declining to ₹72.48 crores in 2025. The introduction of purchase of finished goods in 2025 at ₹25.20 crores suggests a strategic shift in sourcing or product mix. Employee costs have steadily increased, reflecting possible workforce expansion or wage inflation.

Balance Sheet and Financial Position

The company’s total assets have grown steadily from ₹101.53 crores in 2020 to ₹128.92 crores in 2025, supported by increases in both current and non-current assets. Inventories have risen from ₹46.69 crores in 2020 to ₹72.78 crores in 2025, indicating higher stock levels possibly to meet growing demand. Shareholder’s funds have also increased from ₹60.41 crores in 2020 to ₹72.41 crores in 2025, reflecting retained earnings and reserves accumulation.

Euro India Fresh’s total debt has nearly doubled from ₹18.96 crores in 2020 to ₹41.97 crores in 2025, with a notable rise in short-term borrowings. This increase in leverage may be linked to funding working capital requirements or expansion initiatives. Despite higher debt, the company has maintained a positive book value per share, which rose from ₹24.36 in 2020 to ₹29.2 in 2025, signalling growing net worth per equity share.

Cash flow from operating activities has generally been positive, reaching ₹8 crores in 2025, although it experienced volatility in earlier years. Investing activities have consistently shown cash outflows, reflecting ongoing capital expenditure and asset investments. Financing activities have mostly been cash outflows in recent years, indicating debt repayments or dividend distributions.

Summary and Investor Insights

Over the past six years, Euro India Fresh has exhibited a pattern of growth in revenue and profitability, supported by expanding assets and shareholder equity. The company’s operating margins have improved, reflecting better cost control and operational leverage. However, the rising debt levels and fluctuating cash flows warrant cautious monitoring, especially in the context of working capital management and financing costs.

Investors should note the company’s consistent increase in earnings per share, which rose from ₹0.35 in 2019 to ₹2.26 in 2025, indicating enhanced shareholder value. The steady rise in book value per share further underscores the strengthening financial foundation. While the company’s performance shows promise, potential investors should weigh the balance between growth prospects and leverage risks.

Overall, Euro India Fresh’s historical performance reveals a company on a growth trajectory with improving profitability and financial strength, albeit with some challenges related to debt and cash flow volatility. This balanced view can help investors make informed decisions aligned with their risk appetite and investment goals.

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