Revenue and Profit Growth
Over the seven-year period ending March 2025, Gowra Leasing’s net sales have shown a robust increase, rising from ₹1.18 crore in 2019 to ₹5.24 crore in 2025. This more than fourfold growth reflects the company’s expanding business operations and market presence. Total operating income mirrors this trend, with no other operating income reported, indicating that core business activities are the primary revenue drivers.
Operating profit before other income (PBDIT excl. other income) has also improved markedly, climbing from ₹0.61 crore in 2019 to ₹3.41 crore in 2025. When factoring in other income, which has grown from ₹0.14 crore to ₹2.44 crore over the same period, the total operating profit (PBDIT) surged to ₹5.85 crore in 2025. This strong profitability is further underscored by the operating profit margin excluding other income, which peaked at 65.08% in 2025, a significant improvement from 51.69% in 2019.
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Profitability and Margins
Profit before tax (PBT) has increased substantially from ₹0.74 crore in 2019 to ₹5.84 crore in 2025, reflecting the company’s effective cost management and revenue growth. Correspondingly, profit after tax (PAT) rose from ₹0.55 crore to ₹4.29 crore, with the PAT margin improving from 46.61% to an impressive 81.87% over the period. This indicates that Gowra Leasing has enhanced its operational efficiency and tax management, resulting in higher net profitability.
Earnings per share (EPS) have followed a similar upward trend, increasing from ₹1.83 in 2019 to ₹7.87 in 2025, signalling growing returns for shareholders. The diluted EPS also shows a notable rise, reaching ₹10.81 in 2025, which suggests potential value creation for investors.
Balance Sheet Strength and Capital Structure
Shareholder’s funds have nearly tripled from ₹12.91 crore in 2020 to ₹33.42 crore in 2025, supported by a steady increase in reserves from zero in 2019 to ₹27.97 crore in 2025. The equity capital was raised from ₹3.00 crore to ₹5.45 crore in 2025, reflecting capital infusion to support growth initiatives.
Notably, Gowra Leasing has maintained a debt-free position until 2024, when short-term borrowings rose to ₹21.35 crore in 2025. This increase in debt may indicate strategic leveraging to finance expansion or working capital needs. Despite this, the company’s book value per share has improved consistently, reaching ₹61.27 in 2025 from ₹43.03 in 2020, underscoring enhanced net asset value per share.
Asset and Liability Overview
The company’s total assets have grown from ₹14.32 crore in 2020 to ₹55.03 crore in 2025, driven largely by an increase in long-term loans and advances, which surged to ₹51.20 crore in 2025 from negligible levels in earlier years. This suggests a strategic deployment of funds into long-term investments or financing activities. Current assets, however, have declined sharply, resulting in negative net current assets of ₹21.65 crore in 2025, which may warrant closer scrutiny regarding liquidity management.
Cash Flow and Working Capital
Cash flow from operating activities turned negative in 2025, with a significant outflow of ₹32 crore, largely due to adverse changes in working capital amounting to ₹37 crore. This contrasts with relatively stable cash flows in previous years. Financing activities in 2025 provided an inflow of ₹32 crore, likely to offset operating cash deficits. The absence of cash flow from investing activities suggests no major asset acquisitions or disposals during this period.
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Summary and Outlook
Gowra Leasing’s historical performance reveals a company that has steadily expanded its revenue base and improved profitability margins over the past several years. The consistent rise in earnings and shareholder equity reflects sound operational management and strategic capital allocation. However, the recent increase in short-term borrowings and negative operating cash flow in 2025 highlight areas that investors should monitor closely, particularly regarding liquidity and working capital management.
Overall, the company’s financial trajectory suggests a growing enterprise with improving returns, but with emerging challenges in cash flow that may require prudent financial oversight going forward.
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