Revenue and Operating Income Trends
Over the past seven years, Kati patang Life’s net sales have shown a mixed pattern. Starting at ₹6.08 crore in March 2019, sales declined to ₹2.55 crore by March 2021, before rebounding sharply to ₹10.92 crore in March 2025. This recent surge more than doubles the sales recorded in the previous fiscal year, indicating a potential recovery or expansion phase. Other operating income has remained consistently nil, meaning total operating income mirrors net sales figures.
Despite this growth in top-line revenue, the company’s expenditure profile has expanded considerably. The purchase of finished goods, a major cost component, rose from ₹3.46 crore in 2019 to ₹7.59 crore in 2025, reflecting increased operational scale. Employee costs have remained relatively stable, fluctuating around ₹2.5 to ₹3.5 crore, while other expenses have also escalated, reaching ₹6.77 crore in the latest fiscal year.
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Profitability Challenges and Margins
Kati patang Life has consistently reported operating losses over the years. The operating profit before depreciation and interest (PBDIT) excluding other income was negative throughout, with margins ranging from -42.6% in 2024 to a severe -110.6% in 2023. Even after accounting for other income, operating profits remained negative, though the deficit narrowed slightly in the latest fiscal year to approximately -₹4.79 crore.
Interest expenses have decreased over time, reaching zero in 2025, which may reflect debt restructuring or repayments. However, depreciation charges have remained modest. The company’s profit before tax and profit after tax have been negative every year, with the net loss after minority interest and share in associates standing at ₹3.20 crore in 2025, an improvement from a loss of ₹4.55 crore in 2019.
Earnings per share have remained negative, though the loss per share has narrowed from -₹4.42 in 2019 to -₹0.86 in 2025, signalling some progress in mitigating losses.
Balance Sheet and Financial Position
The company’s equity capital increased significantly from ₹10.30 crore to ₹35.90 crore by 2025, likely due to capital infusion. Despite this, reserves have remained negative, though the deficit has improved from -₹27.89 crore in 2021 to -₹23.39 crore in 2025. Shareholders’ funds turned positive in 2025 at ₹14.60 crore after years of negative net worth, indicating a strengthening financial base.
Long-term borrowings have decreased substantially from ₹46.40 crore in 2024 to ₹13.14 crore in 2025, signalling debt reduction efforts. Current liabilities have also declined, improving the company’s liquidity position. Total assets have grown from ₹22.09 crore in 2020 to ₹32.09 crore in 2025, supported by increases in net block and current assets such as sundry debtors and cash balances.
Cash Flow Overview
Cash flow from operating activities has been negative consistently, with a loss of ₹1 crore in 2025. Investing activities saw a significant outflow of ₹17 crore in the latest year, while financing activities provided a substantial inflow of ₹19 crore, likely reflecting capital raising or debt restructuring. Despite these movements, net cash inflow/outflow remained neutral, suggesting careful cash management.
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Summary and Outlook
In summary, Kati patang Life’s historical performance reflects a company grappling with sustained losses despite recent revenue growth. The improvement in net sales and reduction in borrowings are positive signs, yet profitability remains elusive with operating and net margins deeply negative. The balance sheet shows signs of stabilisation with positive shareholders’ funds and reduced debt levels. Cash flow remains a concern, with operating activities generating negative cash consistently.
Investors should weigh these factors carefully, considering the company’s efforts to strengthen its financial position against the ongoing challenges in achieving profitability. The narrowing losses and improved equity base may offer a foundation for future recovery, but sustained operational improvements will be critical to realise long-term value.
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