Revenue and Profit Growth
Over the seven-year period ending March 2025, Golkunda Diamond’s net sales have shown a robust increase, rising from ₹108.91 crores in 2019 to ₹252.44 crores in 2025. This represents a compound growth trend, with notable acceleration post-2020. Total operating income closely mirrors this trend, reflecting the company’s core business strength without reliance on other operating income, which has been negligible in recent years.
Operating profit before depreciation and interest (PBDIT) has also expanded significantly, from ₹4.70 crores in 2019 to ₹20.47 crores in 2025. This improvement is accompanied by a rise in operating profit margin from 4.32% in 2019 to 7.82% in 2025, indicating enhanced operational efficiency and cost management. Profit after tax (PAT) has grown from ₹1.35 crores to ₹11.82 crores over the same period, with the PAT margin improving from 1.24% to 4.68%, underscoring stronger bottom-line performance.
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Cost Structure and Margins
The company’s raw material costs have increased in line with sales, from ₹99.16 crores in 2019 to ₹215.04 crores in 2025, reflecting the scale of operations. Other expenses, including employee costs and miscellaneous overheads, have also risen but at a controlled pace, supporting margin expansion. Notably, the company has maintained minimal expenditure on power and selling costs, which remain at zero, suggesting a lean operational model.
Interest expenses have increased moderately from ₹2.39 crores in 2019 to ₹3.20 crores in 2025, consistent with the company’s borrowing levels. Despite this, the company’s gross profit before tax has improved substantially, indicating effective leverage utilisation.
Balance Sheet Strength and Asset Base
Golkunda Diamond’s shareholder funds have grown from ₹30.54 crores in 2021 to ₹65.40 crores in 2025, supported by rising reserves which have nearly doubled from ₹30.09 crores in 2022 to ₹58.44 crores in 2025. The company’s total liabilities have increased proportionally, reaching ₹128.38 crores in 2025, with a significant portion comprising current liabilities and short-term borrowings.
Fixed assets have expanded steadily, with net block increasing from ₹3.82 crores in 2021 to ₹9.28 crores in 2025, reflecting ongoing capital investment. Current assets have also grown, particularly sundry debtors and inventories, which align with the company’s expanding scale of operations. The book value per share has risen impressively from ₹43.86 in 2021 to ₹93.91 in 2025, signalling enhanced shareholder value.
Cash Flow and Financial Health
Cash flow from operating activities has shown improvement, reaching ₹8 crores in 2025 compared to ₹2 crores in 2021, despite some fluctuations in working capital changes. Investing activities have consistently been cash outflows, indicative of capital expenditure and asset acquisition. Financing activities have seen net outflows in recent years, suggesting debt repayments or dividend distributions.
The company’s net cash inflow/outflow has remained relatively stable, with minor fluctuations, and closing cash and cash equivalents have been modest but positive in recent years, supporting liquidity.
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Summary of Historical Performance
In summary, Golkunda Diamond has exhibited consistent growth in revenue and profitability over the past several years, with operating and net margins improving steadily. The company has strengthened its balance sheet through increased reserves and shareholder funds, while managing liabilities prudently. Capital investments have supported asset growth, and cash flow from operations has improved, reflecting operational efficiency. Earnings per share have nearly quadrupled since 2019, highlighting the company’s enhanced earnings capacity and value creation for shareholders.
While the company carries a moderate level of debt, interest costs remain manageable relative to earnings. The steady increase in book value per share further confirms the company’s solid financial foundation and growth trajectory. Investors analysing Golkunda Diamond’s historical performance can note a well-managed expansion with improving profitability and financial stability.
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