Revenue and Profitability Trends
Over the five-year period ending March 2025, HMA Agro Inds. has seen its net sales surge significantly, rising from ₹1,707.50 crores in fiscal 2021 to ₹5,133.02 crores in fiscal 2025. This represents a near threefold increase, reflecting robust demand and possibly expansion in operations. Total operating income mirrored this growth, with no other operating income reported, indicating that core business activities have been the primary revenue driver.
Despite the impressive top-line growth, operating profit margins have experienced a decline. The operating profit margin excluding other income dropped from 5.69% in 2021 to 1.99% in 2025, signalling rising costs or pricing pressures. Gross profit margins also contracted from 6.21% to 3.12% over the same period. Profit after tax (PAT) margins followed a similar downward trend, falling from 4.25% to 1.71%, although absolute PAT increased from ₹72.61 crores to ₹87.69 crores, reflecting the scale effect.
Operating profit before other income (PBDIT) showed fluctuations, peaking at ₹202.36 crores in 2023 before easing to ₹183.50 crores in 2025. Other income contributed positively, increasing to ₹81.36 crores in 2025 from ₹12.90 crores in 2021, helping to bolster overall operating profit. Interest expenses rose steadily, reaching ₹23.37 crores in 2025, which may have impacted net profitability.
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Balance Sheet and Capital Structure
HMA Agro Inds. has strengthened its financial position with shareholder’s funds rising from ₹259.64 crores in 2021 to ₹788.91 crores in 2025. This growth is supported by a substantial increase in reserves, which climbed to ₹738.83 crores by 2025. The company’s equity capital also increased, reflecting possible equity infusions or stock adjustments.
Total liabilities expanded from ₹570.24 crores in 2021 to ₹1,703.82 crores in 2025, driven largely by a rise in current liabilities, particularly short-term borrowings which surged to ₹506.00 crores in 2025 from ₹176.30 crores in 2021. Long-term borrowings, however, decreased from a peak of ₹52.16 crores in 2022 to ₹27.00 crores in 2025, indicating some deleveraging in the longer term.
On the asset side, total assets grew significantly from ₹570.24 crores in 2021 to ₹1,703.82 crores in 2025. Non-current assets increased steadily, with net block assets rising to ₹270.73 crores in 2025. Capital work in progress also saw fluctuations, peaking in 2022 before moderating. Current assets expanded robustly, particularly inventories and short-term loans and advances, suggesting increased operational scale and working capital requirements.
Cash Flow and Operational Efficiency
Cash flow from operating activities showed volatility, with a negative outflow in 2024 but a recovery to ₹124 crores in 2025. Investing activities consistently reflected cash outflows, indicative of ongoing capital expenditure and asset investments. Financing activities varied, with a notable inflow in 2024 but a modest inflow in 2025, suggesting a cautious approach to external funding.
Closing cash and cash equivalents stood at ₹94 crores in 2025, down from ₹115 crores in 2024 but higher than earlier years, maintaining a reasonable liquidity buffer. The company’s book value per share improved steadily, reaching ₹15.75 in 2025 from ₹5.46 in 2021, signalling enhanced shareholder value over time.
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Summary and Outlook
In summary, HMA Agro Inds. has exhibited strong revenue growth and an expanding asset base over the last five years, supported by increasing shareholder equity and reserves. However, profitability margins have contracted, reflecting rising costs and interest expenses. The company’s leverage profile shows a shift towards higher short-term borrowings, which may warrant monitoring for liquidity risk. Cash flow patterns suggest ongoing investment in growth, balanced by operational cash generation recovery in the latest fiscal year.
Investors analysing HMA Agro Inds. should weigh the company’s impressive scale expansion and asset growth against margin pressures and evolving capital structure. The steady increase in book value per share and positive cash flow from operations in the latest year provide encouraging signs of financial health and value creation potential.
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