Revenue and Profitability Trends
Over the past seven years, Inter State Oil’s net sales have shown a consistent upward trend, rising from ₹31.75 crores in March 2019 to ₹88.15 crores by March 2025. This growth reflects a compound expansion in the company’s market presence and sales volume. Total operating income mirrors this pattern, with no other operating income reported during this period.
Operating profit before depreciation and interest (PBDIT) excluding other income has improved significantly, climbing from a modest ₹0.48 crores in March 2019 to ₹7.21 crores in March 2025. Including other income, operating profit rose to ₹7.62 crores in the latest fiscal year. Despite this, profit before tax has been more volatile, with losses recorded in March 2019, 2020, and 2023, but positive results in other years, culminating in a modest ₹1.56 crores in March 2025.
Profit after tax (PAT) has followed a similar pattern, with losses in earlier years turning into profits from March 2021 onwards. The latest fiscal year saw a PAT of ₹1.14 crores, reflecting a PAT margin of 1.29%. Earnings per share (EPS) have also recovered from negative values in 2019 and 2020 to a positive ₹2.28 in March 2025, indicating improved shareholder returns.
Our latest monthly pick, this Large Cap from Aluminium & Aluminium Products, is outperforming the market! See the analysis that helped our Investment Committee select this winner.
- - Market-beating performance
- - Committee-backed winner
- - Aluminium & Aluminium Products standout
Cost Structure and Margins
The company’s expenditure profile reveals that purchase of finished goods constitutes a significant portion of costs, with figures rising from ₹27.00 crores in March 2019 to ₹74.53 crores in March 2024, though no purchase cost was reported in March 2025, possibly due to a change in accounting or operational structure. Employee costs have increased steadily but remain a small fraction of total expenses, reaching ₹1.58 crores in the latest year.
Manufacturing expenses were reported only in March 2025 at ₹77.70 crores, indicating a possible shift towards in-house production or reclassification of costs. Other expenses have generally declined from ₹3.37 crores in 2019 to ₹1.66 crores in 2025, suggesting improved cost control.
Operating profit margins excluding other income have hovered around 8%, with a peak of 9.78% in March 2022. Gross profit margins have been more variable, peaking at 14.51% in March 2021 but declining to 6.67% in March 2025. These fluctuations highlight the challenges in maintaining consistent profitability amid changing cost dynamics.
Balance Sheet and Financial Position
Inter State Oil’s balance sheet has strengthened over the years, with shareholder’s funds increasing from ₹15.01 crores in March 2021 to ₹19.31 crores in March 2025. Total reserves have also grown steadily, reflecting retained earnings and capital accumulation. The company’s total liabilities have expanded from ₹27.38 crores in 2021 to ₹49.30 crores in 2025, driven largely by an increase in both long-term and short-term borrowings.
Long-term borrowings rose significantly to ₹10.37 crores in March 2025 from ₹2.00 crores in 2021, while short-term borrowings increased to ₹13.53 crores. This rise in debt indicates a higher leverage position, which may support expansion but also increases financial risk.
On the asset side, net block value has more than doubled from ₹11.27 crores in 2021 to ₹28.87 crores in 2025, signalling substantial investment in fixed assets. Non-current assets have similarly increased, while current assets have grown moderately, with sundry debtors rising to ₹12.71 crores in the latest year.
Cash Flow and Liquidity
Cash flow from operating activities has improved, reaching ₹8.00 crores in March 2025 compared to ₹2.00 crores in 2021. However, cash flow from investing activities has been negative in recent years, notably ₹-12.00 crores in 2025, reflecting ongoing capital expenditure. Financing activities have fluctuated, with a positive inflow of ₹2.00 crores in the latest year after a negative outflow in the previous year.
Despite these movements, the company’s net cash inflow/outflow has remained neutral, indicating balanced cash management. The closing cash and cash equivalents were minimal, suggesting limited liquidity buffers.
Considering Inter State Oil? Wait! SwitchER has found potentially better options in Transport Services and beyond. Compare this Microcap with top-rated alternatives now!
- - Better options discovered
- - Transport Services + beyond scope
- - Top-rated alternatives ready
Summary and Outlook
Inter State Oil’s historical financial performance reflects a company in transition, with solid revenue growth and improving profitability after earlier losses. The expansion in asset base and borrowings suggests strategic investments aimed at scaling operations. While operating margins have been relatively stable, the company faces challenges in maintaining consistent profit levels amid fluctuating costs and interest expenses.
Investors should note the company’s increased leverage and modest liquidity position, which may impact financial flexibility. Nonetheless, the positive trend in earnings per share and reserves indicates a strengthening foundation for future growth. Careful monitoring of cost management and debt servicing will be crucial as the company navigates its next phase of development.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
