How has been the historical performance of Inspirisys Sol.?

Dec 03 2025 10:50 PM IST

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Inspirisys Sol. has shown a fluctuating financial performance, with a recovery in the latest fiscal year, reporting net sales of 388.15 Cr in March 2025, an operating profit of 37.25 Cr, and a profit after tax of 26.43 Cr, significantly improving from previous years. Total assets and liabilities decreased slightly, while cash flow from operating activities improved to 38.00 Cr.

Revenue and Operating Performance Trends

Inspirisys Sol. recorded its highest net sales in the fiscal year ending March 2019, with ₹546.41 crores. Since then, the company’s revenue has generally trended downward, with notable fluctuations. After a decline to ₹341.62 crores in March 2022, sales rebounded to ₹490.49 crores in March 2024 before easing to ₹388.15 crores in the latest fiscal year. The absence of other operating income throughout this period indicates that the company’s revenue is primarily derived from its core business activities.

Operating expenses have mirrored this volatility. Purchase of finished goods, a significant cost component, dropped sharply from ₹265.39 crores in 2019 to ₹82.64 crores in 2025, reflecting changes in procurement or inventory strategies. Employee costs remained relatively stable, hovering around ₹120-133 crores annually, indicating consistent staffing levels. Manufacturing expenses appeared only in recent years, rising to ₹116.16 crores in 2025, suggesting increased production activities or cost reclassification.

Operating profit before other income (PBDIT excl. other income) showed a recovery from negative territory in 2022 to ₹27.81 crores in 2025, with operating profit margins improving to 7.16% in the latest year. This marks a significant turnaround from the margin lows of -0.9% in 2022. Other income contributed positively, particularly in 2025 with ₹9.44 crores, supporting overall operating profit of ₹37.25 crores.

Profitability and Earnings Analysis

Profit before tax (PBT) has seen a marked improvement after a challenging period. The company posted a loss before tax in 2022 but recovered to a PBT of ₹23.10 crores in 2025. Tax adjustments in 2025 resulted in a negative tax expense, contributing to a profit after tax (PAT) of ₹26.43 crores, a substantial turnaround from losses in prior years. Consolidated net profit followed a similar pattern, rising sharply to ₹31.73 crores in 2025 from a marginal profit of ₹3.67 crores in 2024 and losses in earlier years.

Earnings per share (EPS) reflect this recovery, moving from negative values in 2022 and 2023 to a positive ₹8.01 in 2025. The PAT margin improved to 6.81% in the latest fiscal year, underscoring enhanced operational efficiency and profitability.

Balance Sheet and Financial Position

Shareholders’ funds have strengthened considerably, rising from a negative net worth in 2023 to ₹58.53 crores in 2025. This improvement is supported by a positive reserve position in 2025, reversing previous years of negative reserves. The company’s total liabilities remained relatively stable around ₹256-263 crores in recent years.

Long-term borrowings surged significantly to ₹79.74 crores in 2025 from single-digit levels in prior years, indicating increased leverage or financing for expansion. Conversely, short-term borrowings declined sharply to ₹0.10 crores in 2025 from ₹76.48 crores in 2024, suggesting a shift in debt structure towards longer maturities.

On the asset side, total assets stood at ₹256.78 crores in 2025, slightly down from ₹262.93 crores in 2024. Notably, current investments appeared for the first time in 2025 at ₹43.78 crores, enhancing liquidity. Net block of fixed assets was ₹6.53 crores, reflecting depreciation and asset utilisation. Cash and bank balances decreased to ₹34.74 crores in 2025 from ₹59.08 crores the previous year, while net current assets improved to a positive ₹90.49 crores, a significant recovery from negative working capital in earlier years.

Cash Flow Overview

Cash flow from operating activities has shown resilience, with ₹38 crores generated in 2025, up from ₹28 crores in 2024. Investing activities reflected a net outflow of ₹45 crores in 2025, indicating capital expenditure or investments. Financing activities also saw a net outflow of ₹15 crores, possibly due to debt repayments or dividend payments. Overall, the company experienced a net cash outflow of ₹22 crores in 2025, reducing cash and cash equivalents to ₹25 crores by year-end.

Summary of Historical Performance

Over the seven-year period analysed, Inspirisys Solutions has faced considerable challenges, including revenue volatility and periods of negative profitability. However, the latest fiscal years demonstrate a clear recovery trend, with improved sales, operating margins, and net profits. The company’s balance sheet has strengthened, supported by increased shareholder equity and a more favourable debt profile. Cash flow generation remains positive, although investment and financing outflows have impacted overall liquidity.

Investors analysing Inspirisys Sol. should note the company’s ability to rebound from losses and its recent operational improvements. The evolving financial structure, including increased long-term borrowings and current investments, suggests strategic repositioning. While past performance has been uneven, the recent upward trajectory in earnings and margins offers a cautiously optimistic outlook for the company’s future prospects.

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