How has been the historical performance of Incredible Indus?

Revenue and Profitability Trends

Over the past seven years, Incredible Indus’s net sales have exhibited variability, peaking at ₹818.16 crores in the fiscal year ending March 2024 before moderating to ₹756.14 crores in March 2025. The company’s total operating income mirrors this trend, reflecting a recovery from a low base of ₹493.94 crores in March 2021 to a more robust scale in recent years. Raw material costs have consistently represented the largest expenditure, accounting for the majority of operating costs, with a slight reduction in absolute terms in the latest fiscal year.

Operating profit (PBDIT) excluding other income has shown a steady upward trajectory, rising from ₹11.82 crores in March 2020 to ₹21.30 crores in March 2025. This improvement is reflected in the operating profit margin, which increased to 2.82% in the latest year, up from 2.35% in 2020. Profit after tax (PAT) has seen a significant uplift, more than doubling from ₹5.97 crores in March 2024 to ₹12.49 crores in March 2025, with the PAT margin improving to 1.65% from 0.73% over the same period. Earnings per share (EPS) have also nearly doubled, reaching ₹2.67 in the latest fiscal year, signalling enhanced shareholder value.

Balance Sheet and Financial Position

The company’s shareholder funds have steadily increased from ₹114.47 crores in March 2020 to ₹145.25 crores in March 2025, supported by consistent reserve accretion. Notably, long-term borrowings have been reduced to zero in the latest fiscal year from ₹18.68 crores in March 2021, indicating a strengthening financial position and reduced leverage. However, short-term borrowings remain significant at ₹19.50 crores, though this is a marked decrease from ₹32.68 crores in the previous year.

On the asset side, net block values have declined gradually from ₹44.32 crores in 2020 to ₹30.20 crores in 2025, while capital work in progress has increased, suggesting ongoing investments in fixed assets. Current assets have remained relatively stable, with inventories and sundry debtors showing moderate fluctuations. Cash and bank balances have improved substantially, rising to ₹20.28 crores in March 2025 from just ₹1.36 crores in 2020, enhancing liquidity.

Cash Flow Analysis

Incredible Indus’s cash flow from operating activities has shown a positive trend, increasing from ₹24 crores in March 2020 to ₹37 crores in March 2025. This improvement reflects better working capital management and operational efficiency. Cash flow from investing activities has been consistently negative, reflecting ongoing capital expenditure, while financing activities have seen net outflows in recent years, consistent with debt repayments and reduced borrowings. The company’s net cash inflow stood at ₹10 crores in the latest fiscal year, a healthy sign of cash generation capability.

Summary of Historical Performance

In summary, Incredible Indus has experienced a period of recovery and growth following a dip in sales and profitability around 2020-2021. The company’s ability to improve operating margins and net profit margins in recent years is a positive indicator of operational improvements and cost control. The reduction in long-term debt and improved cash reserves further strengthen its financial stability. However, the company’s revenue has not yet returned to the peak levels seen in 2024, and short-term borrowings remain a factor to monitor.

Investors analysing Incredible Indus should weigh its improving profitability and balance sheet against the volatility in sales and the ongoing capital expenditure requirements. The steady rise in earnings per share and cash flow generation are encouraging signs, suggesting that the company is on a path of sustainable growth and financial consolidation.

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