Revenue and Profitability Trends
Godrej Industrie’s net sales have shown a consistent upward trend, rising from ₹10,848 crore in March 2019 to ₹19,657 crore by March 2025. This represents a near doubling of sales over six years, underscoring robust top-line growth. The operating profit margin, excluding other income, improved from 6.36% in 2019 to 10.68% in 2025, reflecting enhanced operational efficiency and cost management. Operating profit (PBDIT) excluding other income increased substantially from ₹690 crore in 2019 to over ₹2,098 crore in 2025.
Including other income, operating profit surged from ₹1,171 crore in 2019 to ₹4,366 crore in 2025, indicating a strong contribution from ancillary income streams. Profit after tax (PAT) also exhibited considerable volatility but ended on a high note, rising from ₹366 crore in 2019 to ₹1,484 crore in 2025. The PAT margin improved from 8.65% in 2019 to 9.45% in 2025, despite a dip in 2024 when the margin fell to 3.59%.
Earnings per share (EPS) followed a similar pattern, with a notable jump to ₹29.14 in 2025 from ₹17.52 in 2019, reflecting improved profitability on a per-share basis. However, the year 2024 saw a sharp decline in EPS to ₹1.78, indicating some financial challenges during that period.
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Cost Structure and Expenditure Analysis
The company’s total expenditure excluding depreciation rose from ₹10,159 crore in 2019 to ₹17,558 crore in 2025, in line with revenue growth. Raw material costs increased steadily, reaching ₹9,186 crore in 2025 from ₹5,673 crore in 2019, reflecting higher input costs and expanded production. Manufacturing expenses showed significant fluctuations, peaking at ₹12,908 crore in 2023 before settling at ₹11,463 crore in 2025.
Employee costs also rose consistently, from ₹587 crore in 2019 to ₹1,444 crore in 2025, indicating investment in human capital. Notably, selling and distribution expenses were negative in some years, suggesting accounting adjustments or reclassifications. Other expenses increased steadily, supporting operational activities.
Balance Sheet and Financial Position
Godrej Industrie’s total assets expanded markedly from ₹19,950 crore in 2020 to ₹87,639 crore in 2025, driven by growth in both current and non-current assets. Non-current assets rose from ₹9,377 crore in 2020 to nearly ₹28,000 crore in 2025, supported by investments and capital work in progress. Current assets more than quintupled from ₹10,573 crore in 2020 to ₹59,640 crore in 2025, with inventories and cash balances showing substantial increases.
Shareholders’ funds grew from ₹5,788 crore in 2020 to ₹10,152 crore in 2025, reflecting retained earnings and capital accumulation. However, the company’s total debt also increased sharply, from ₹6,737 crore in 2020 to ₹37,851 crore in 2025, indicating a rising leverage position. Long-term borrowings and short-term borrowings both contributed to this increase, necessitating close monitoring of debt servicing capabilities.
Cash Flow Dynamics
Cash flow from operating activities has been negative in recent years, with ₹-5,150 crore in 2025 and similar outflows in preceding years, largely due to significant changes in working capital requirements. Investing activities also reflected outflows, particularly in 2025 with ₹-4,562 crore, consistent with capital expenditure and investments. Financing activities provided substantial inflows, reaching ₹10,688 crore in 2025, primarily to support the company’s expansion and debt servicing.
Despite operating cash flow challenges, the net cash inflow was positive in 2025 at ₹976 crore, aided by financing activities. The closing cash and cash equivalents rose to ₹2,841 crore in 2025 from ₹441 crore in 2021, indicating improved liquidity buffers.
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Summary of Historical Performance
Over the six-year period ending March 2025, Godrej Industrie has exhibited strong revenue growth, improved profitability margins, and a growing asset base. The company’s earnings per share and net profit margins have generally trended upwards, despite some volatility in 2024. The balance sheet reflects significant expansion, supported by increased borrowings and investments in fixed assets and working capital.
While the rising debt levels and negative operating cash flows warrant attention, the company’s ability to generate positive net cash inflows and maintain liquidity provides some reassurance. Investors should weigh these factors carefully, considering both the growth potential and financial leverage inherent in Godrej Industrie’s historical performance.
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