Revenue and Operating Performance
KG Petrochem’s net sales have shown an overall upward trend, rising from ₹249.07 crores in March 2019 to ₹375.39 crores in March 2025. Despite some volatility, such as a dip in fiscal 2020 and 2022, the company has managed to increase its top line by over 50% across the seven-year span. Total operating income mirrors this pattern, with no other operating income reported, indicating reliance solely on core business activities.
Raw material costs have naturally increased alongside sales, reaching ₹203.98 crores in the latest fiscal year, reflecting the company’s scale of operations. Employee costs have also risen steadily, from ₹23.90 crores in 2019 to ₹39.44 crores in 2025, signalling investment in human capital. Other expenses have similarly escalated, reaching ₹114.72 crores in the most recent year, which may warrant closer scrutiny for cost control.
Operating profit before other income (PBDIT excl. OI) has fluctuated, peaking at ₹44.18 crores in 2020 before declining to ₹25.33 crores in 2025. The operating profit margin has correspondingly contracted from a high of 13.41% in 2020 to 6.75% in 2025, indicating margin pressures possibly due to rising costs or competitive factors.
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Profitability and Margins
Profit before tax (PBT) has seen significant variation, with a peak of ₹23.14 crores in 2022, followed by a sharp decline to ₹7.12 crores in 2025. Profit after tax (PAT) similarly peaked at ₹17.47 crores in 2020 and 2022 but dropped to ₹5.51 crores in the latest fiscal year. This decline is reflected in the PAT margin, which fell from over 5% in earlier years to just 1.47% in 2025.
Earnings per share (EPS) have mirrored this trend, reaching highs near ₹30 in 2020 and 2022 before falling to ₹10.56 in 2025. The diluted EPS follows a similar pattern, indicating consistent shareholder dilution effects or share count stability.
Interest expenses have remained relatively stable, averaging around ₹8 crores annually, while depreciation has gradually decreased from ₹17.72 crores in 2020 to ₹13.51 crores in 2025, suggesting a maturing asset base.
Balance Sheet and Financial Position
KG Petrochem’s shareholder funds have grown steadily from ₹130.40 crores in 2020 to ₹181.53 crores in 2025, supported by increasing reserves. The book value per share has appreciated significantly, rising from ₹148.37 in 2020 to ₹261.74 in 2025, indicating enhanced net asset value per share.
Long-term borrowings have been substantially reduced from ₹61.36 crores in 2020 to ₹3.74 crores in 2025, reflecting a strategic deleveraging effort. However, short-term borrowings have increased from ₹70.03 crores in 2020 to ₹117.28 crores in 2025, which may suggest a shift in the company’s financing structure or working capital requirements.
Total liabilities have remained relatively stable around ₹370 crores, while total assets have hovered near ₹370 crores as well, indicating a balanced asset-liability structure. Net block of fixed assets has declined from ₹156.13 crores in 2020 to ₹97.72 crores in 2025, consistent with depreciation trends and limited capital expenditure in recent years.
Cash Flow Analysis
Cash flow from operating activities has fluctuated but remained positive, with ₹27 crores generated in 2025 compared to ₹31 crores in 2020. Investing activities have consistently been cash outflows, reflecting ongoing capital investments albeit at a reduced scale in recent years. Financing activities have been net cash outflows, indicating debt repayments or dividend distributions.
Net cash inflow/outflow has been mostly neutral, with a slight negative in 2023 but balanced in other years. The company’s cash and bank balances remain minimal, suggesting a lean cash position.
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Summary of Historical Performance
Over the past seven years, KG Petrochem has experienced growth in revenue and shareholder equity, alongside a reduction in long-term debt. However, profitability margins have contracted, and earnings have been volatile, reflecting challenges in cost management and market conditions. The company’s balance sheet shows a cautious approach to capital expenditure and a shift towards short-term financing. Cash flows remain positive from operations but are offset by investing and financing outflows, resulting in a stable but modest cash position.
Investors should weigh the company’s steady revenue growth and improved net asset value against the pressures on profitability and margin compression. The evolving debt profile and cash flow dynamics also warrant close monitoring for future financial health and operational efficiency.
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