Revenue and Operating Performance Trends
The company’s net sales have seen a pronounced decline over the past six years, falling from ₹5,718.78 crores in March 2019 to ₹957.86 crores in March 2025. This steep reduction reflects a contraction of over 80%, signalling considerable operational challenges or strategic shifts. Total operating income mirrored this trend, with no other operating income reported during this period.
Expenditure patterns reveal that the purchase of finished goods consistently accounted for the bulk of costs, closely tracking revenue movements. Other expenses fluctuated notably, peaking at ₹196.69 crores in 2019 before dropping sharply and then rising again to ₹144.80 crores in 2025. Employee costs remained relatively stable, hovering around ₹5.7 crores in recent years.
Operating profit margins excluding other income have mostly been negative since 2019, with a low of -13.81% in 2025. Despite occasional positive operating profits in earlier years, the company has struggled to maintain profitability at the operating level, culminating in a negative operating profit of ₹80.95 crores in the latest fiscal year.
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Profitability and Earnings Analysis
Profit before tax has been volatile, swinging from a high of ₹160.31 crores in 2019 to a loss of ₹88.49 crores in 2025. Correspondingly, profit after tax followed a similar pattern, with a peak of ₹121.42 crores in 2019 before turning negative in recent years, registering a loss of ₹93.70 crores in the latest fiscal year. Consolidated net profit also reflects this volatility, with a significant loss of ₹93.99 crores in 2025 compared to a profit of ₹123.57 crores in 2019.
Earnings per share (EPS) have mirrored the profit trends, declining from ₹41.41 in 2019 to a negative ₹15.75 in 2025. This erosion in earnings highlights the challenges faced by the company in sustaining shareholder value over the period.
Balance Sheet and Financial Position
Shareholders’ funds have remained relatively stable, with a slight decrease from ₹1,171.27 crores in 2020 to ₹1,095.58 crores in 2025. The company’s reserves have fluctuated but stayed above ₹1,000 crores in recent years. Total liabilities have decreased from ₹2,805.17 crores in 2020 to ₹1,496.86 crores in 2025, reflecting some deleveraging efforts.
Long-term borrowings have been reduced significantly from ₹500.73 crores in 2020 to ₹121.69 crores in 2025, while short-term borrowings showed a mixed trend, rising sharply to ₹150.89 crores in 2025 after a dip in 2024. The company’s total assets have contracted from ₹2,805.17 crores in 2020 to ₹1,496.86 crores in 2025, consistent with the decline in operations.
Non-current investments have grown steadily, reaching ₹384.61 crores in 2025, indicating a possible strategic focus on long-term asset accumulation. Meanwhile, current assets have decreased from ₹2,524.78 crores in 2020 to ₹959.74 crores in 2025, with cash and bank balances improving to ₹88.31 crores in 2025 from a low of ₹15 crores in 2020.
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Cash Flow and Liquidity Overview
Cash flow from operating activities has been positive in recent years, with ₹100 crores generated in 2025, though this is down from ₹669 crores in 2022. Investing activities have seen outflows of ₹97 crores in 2025, contrasting with inflows in some prior years. Financing activities showed a positive inflow of ₹50 crores in 2025, reversing previous years’ outflows.
The company’s net cash inflow was ₹52 crores in 2025, improving from a marginal outflow in 2024. Closing cash and cash equivalents rose to ₹84 crores in 2025, indicating improved liquidity compared to earlier years.
Overall, Kothari Products has faced a challenging period marked by declining revenues and profitability, alongside efforts to reduce debt and improve cash flow. Investors should weigh these factors carefully when analysing the company’s prospects.
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