How has been the historical performance of Global Health?

Dec 01 2025 11:40 PM IST
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Global Health has shown strong financial growth over the past five years, with net sales increasing from INR 1,446.74 crore in March 2021 to INR 3,692.32 crore in March 2025, alongside significant rises in operating profit and profits before and after tax. Despite challenges in cash flow management, the company has expanded its asset base significantly during this period.




Revenue and Profit Growth Trajectory


Global Health’s net sales have shown a robust upward trend, rising from ₹1,446.74 crores in the fiscal year ending March 2021 to ₹3,692.32 crores by March 2025. This represents a compound annual growth rate (CAGR) of approximately 26.5%, signalling strong market demand and effective business expansion. Operating profit before depreciation and interest (PBDIT) excluding other income also increased significantly, from ₹191.43 crores in 2021 to ₹877.07 crores in 2025, highlighting improved operational leverage.


The company’s consolidated net profit followed a similar trajectory, surging from ₹28.81 crores in 2021 to ₹481.44 crores in 2025. Despite a slight dip in profit margins in the latest year, the profit after tax margin remains healthy at 13.04%, up from a modest 1.99% in 2021. Earnings per share (EPS) adjusted for the face value change, reflect this growth, with the latest EPS at ₹17.92 compared to ₹0.7 in 2021, indicating enhanced shareholder returns.



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Cost Structure and Margins


The company’s cost of raw materials and purchase of finished goods has risen in line with sales, but the increase in employee costs and other expenses has been more pronounced, reflecting investments in talent and infrastructure. Total expenditure excluding depreciation grew from ₹1,255.31 crores in 2021 to ₹2,815.25 crores in 2025. Despite this, Global Health has maintained a strong operating profit margin, which stood at 23.75% in 2025, up from 13.23% in 2021, demonstrating improved cost control and operational efficiency.


Interest expenses have decreased from ₹67.17 crores in 2021 to ₹65.26 crores in 2025, aided by a reduction in total debt from ₹644.60 crores to ₹327.88 crores over the same period. This deleveraging has contributed to higher gross profits and better net profitability.


Balance Sheet Strength and Asset Growth


Global Health’s total assets have expanded substantially, from ₹2,668.36 crores in 2021 to ₹4,733.21 crores in 2025, reflecting capital investments and business growth. Shareholders’ funds have more than doubled, reaching ₹3,386.41 crores in 2025, supported by rising reserves which grew from ₹1,267.93 crores in 2021 to ₹3,332.44 crores in 2025. The book value per share has also improved significantly, from ₹54.44 in 2021 to ₹126.08 in 2025, indicating enhanced net worth per share.


Capital work in progress has fluctuated but remains substantial at ₹528.52 crores in 2025, signalling ongoing expansion projects. The net block of fixed assets has increased steadily, underscoring the company’s commitment to strengthening its operational base.



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Cash Flow and Liquidity Trends


Cash flow from operating activities has shown consistent strength, rising from ₹241 crores in 2021 to ₹623 crores in 2025. This robust cash generation supports the company’s investing activities, which have involved significant outflows, peaking at ₹720 crores in 2025 as Global Health invests in growth and capacity enhancement.


Financing activities have seen net outflows in recent years, reflecting debt repayments and capital management efforts. The net cash inflow/outflow position has been negative in the latest two years, with a ₹194 crores outflow in 2025, but the company maintains a healthy cash and bank balance of ₹1,122 crores, ensuring liquidity and operational flexibility.


Summary of Historical Performance


Over the past five years, Global Health has exhibited strong revenue growth, improved profitability, and a solid balance sheet. The company’s strategic investments and operational efficiencies have translated into higher margins and shareholder value. While the recent slight contraction in profit margins and negative net cash flow warrant monitoring, the overall financial health remains robust, positioning Global Health well for future growth in the healthcare sector.





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