Revenue and Operating Performance
Over the past seven years, IFB Industries has seen its net sales rise significantly, from approximately ₹2,657 crores in March 2019 to over ₹5,091 crores by March 2025. This represents a near doubling of revenue, reflecting the company’s expanding market presence and product demand. The total operating income mirrors this growth, with no other operating income reported, indicating that core business activities drive revenue.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income has also improved, reaching ₹302 crores in the latest fiscal year, up from ₹127 crores in 2019. The operating profit margin, however, has experienced some volatility, peaking at 7.49% in March 2021 before moderating to 5.94% in March 2025. This suggests that while the company has grown sales, cost pressures and operational efficiencies have influenced profitability margins.
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Profitability Trends
Profit before tax (PBT) has shown a remarkable recovery after a loss in the fiscal year ending March 2022. The company posted a negative PBT of ₹-74 crores in that year but rebounded strongly to ₹182 crores by March 2025. Correspondingly, profit after tax (PAT) followed a similar pattern, with a loss of ₹48 crores in 2022 turning into a profit of ₹137 crores in 2025. The consolidated net profit also reflects this turnaround, rising from a loss to ₹119 crores in the latest year.
Earnings per share (EPS) have mirrored these profit trends, recovering from a negative ₹11.67 in 2022 to a robust ₹28.81 in 2025. This improvement underscores the company’s ability to generate shareholder value after a challenging period.
Balance Sheet and Financial Position
IFB Industries’ balance sheet reveals a strengthening equity base, with shareholder’s funds increasing from ₹646 crores in 2020 to ₹842 crores in 2025. Reserves have also grown steadily, supporting the company’s financial stability. Total liabilities have risen moderately, reflecting increased current liabilities and a reduction in long-term borrowings from ₹254 crores in 2020 to ₹13 crores in 2025, indicating a strategic deleveraging effort.
The company’s net block of fixed assets has remained relatively stable, around ₹540 crores in 2025, suggesting consistent capital investment. Current assets have increased to ₹1,546 crores, supported by higher inventories and sundry debtors, which aligns with the company’s expanded operations.
Cash Flow Analysis
Cash flow from operating activities has fluctuated but shows a positive trend, with ₹118 crores generated in 2025 compared to ₹184 crores in 2020. Investing activities have consistently been cash outflows, reflecting ongoing capital expenditure and investments. Financing activities have seen net outflows in recent years, consistent with the company’s reduction in debt and repayment of borrowings.
Overall, the net cash inflow remains modest, with closing cash and cash equivalents rising slightly to ₹109 crores in 2025, indicating prudent cash management amid growth.
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Summary of Historical Performance
In summary, IFB Industries has experienced a significant growth phase in revenue and operating income over the last seven years, despite a setback in profitability during the fiscal year ending March 2022. The company’s ability to recover and post strong profits in subsequent years highlights operational resilience and effective cost management. The balance sheet improvements, particularly the reduction in long-term debt and growth in reserves, further reinforce the company’s financial health.
Investors should note the steady increase in earnings per share and the positive cash flow from operations, which together indicate a sustainable business model. However, the fluctuations in margins and the ongoing capital expenditure suggest that the company remains in a dynamic phase of growth and investment.
Overall, IFB Industries’ historical performance reflects a compelling turnaround story with promising prospects for continued expansion and profitability.
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