Revenue and Profit Trends
Kanani Industrie’s net sales have shown a consistent downward trend from ₹376.56 crores in March 2020 to ₹168.47 crores in March 2025. This represents a significant contraction in top-line revenue over the six-year period. Correspondingly, total operating income mirrored this decline, reflecting the absence of other operating income throughout these years.
The company’s expenditure profile reveals that purchase of finished goods remains the largest cost component, although it has decreased in line with sales, from ₹286.43 crores in March 2020 to ₹169.40 crores in March 2025. Employee costs have remained relatively stable, hovering around ₹1 crore annually, while other expenses have fluctuated modestly.
Operating profit before other income (PBDIT excl OI) has diminished sharply, falling from ₹3.11 crores in March 2020 to a mere ₹0.31 crores in March 2025. Including other income, operating profit (PBDIT) also declined from ₹3.77 crores to ₹0.83 crores over the same period. This contraction is reflected in the operating profit margin, which dropped from 0.83% in March 2020 to just 0.18% in March 2025.
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Profitability and Margins
Profit before tax has seen a similar decline, from ₹2.74 crores in March 2020 to ₹0.81 crores in March 2025. After accounting for taxes, the profit after tax (PAT) decreased from ₹2.56 crores to ₹0.78 crores. The PAT margin has contracted from 0.68% to 0.46% over the same timeframe, indicating tighter profitability despite cost controls.
Earnings per share (EPS) have also reflected this downward trend, falling from ₹0.26 in March 2020 to ₹0.04 in March 2025. This decline in EPS is partly influenced by the increase in equity capital in March 2024, which doubled from ₹9.89 crores to ₹19.79 crores, diluting earnings per share.
Balance Sheet and Financial Position
Kanani Industrie’s shareholder funds have grown steadily from ₹56.50 crores in March 2020 to ₹64.85 crores in March 2025, supported by rising reserves. The book value per share has improved modestly from ₹2.855 to ₹3.28 during this period, reflecting incremental value creation for shareholders.
Notably, the company has significantly reduced its total debt from ₹25.28 crores in March 2020 to just ₹0.05 crores in March 2025, indicating a strong deleveraging trend. Long-term borrowings have almost been eliminated, and short-term borrowings have been fully repaid by the latest fiscal year.
Current liabilities have also decreased substantially, from ₹93.96 crores in March 2020 to ₹28.06 crores in March 2025, while current assets have declined from ₹154.41 crores to ₹92.76 crores. Despite this, net current assets remain healthy at ₹64.70 crores, supporting operational liquidity.
Cash Flow Analysis
Cash flow from operating activities has been positive in recent years, with ₹5 crores generated in March 2025, though this is down from ₹19 crores in March 2024. The company has maintained a neutral cash flow from investing activities, while cash flow from financing activities has been negative, reflecting debt repayments and capital restructuring.
Closing cash and cash equivalents have decreased sharply from ₹8 crores in March 2023 to negligible levels in March 2025, signalling a tighter cash position that may require monitoring going forward.
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Summary and Outlook
Over the past six years, Kanani Industrie has faced a challenging operating environment, with revenues declining by more than 50% and profitability margins compressing significantly. Despite these headwinds, the company has strengthened its balance sheet by reducing debt and increasing shareholder equity, which may provide a foundation for future stability.
However, the sharp fall in operating profit and EPS, coupled with a reduced cash reserve, suggests that the company must focus on improving operational efficiencies and revenue growth to restore investor confidence. The steady reduction in borrowings is a positive sign, but sustaining profitability will be critical for long-term value creation.
Investors should closely monitor Kanani Industrie’s upcoming financial results and strategic initiatives to assess whether the company can reverse its recent performance trends and capitalise on market opportunities.
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