How has been the historical performance of Krishival Foods?

Revenue and Profit Growth

Krishival Foods’ net sales have shown a remarkable upward trend, rising from ₹28.13 crores in March 2021 to ₹202.23 crores by March 2025. This represents a more than sevenfold increase in top-line revenue over the five-year period, reflecting strong market demand and effective business expansion strategies. Total operating income mirrored this growth, as other operating income remained negligible throughout.

On the profitability front, the company’s operating profit before depreciation, interest, and tax (PBDIT) excluding other income increased steadily from ₹3.20 crores in March 2021 to ₹21.16 crores in March 2025. Including other income, operating profit rose to ₹25.23 crores in the latest fiscal year. Profit before tax surged from ₹1.02 crores to ₹19.72 crores, while profit after tax expanded from ₹0.67 crores to ₹13.55 crores, underscoring improved operational efficiency and cost management.

Margins and Efficiency

Despite the rapid revenue growth, Krishival Foods’ operating profit margin excluding other income experienced a slight contraction, moving from 11.38% in March 2021 to 10.46% in March 2025. This was preceded by a peak margin of 14.88% in March 2023, indicating some margin pressure in recent years possibly due to rising raw material costs or increased expenses. Gross profit margin followed a similar pattern, improving from 9.6% in March 2021 to a high of 15.04% in March 2023 before settling at 11.9% in March 2025. The profit after tax margin also fluctuated, reaching a high of 9.51% in March 2023 and moderating to 6.7% in the latest fiscal year.

Raw material costs, a significant component of total expenditure, increased in absolute terms from ₹19.26 crores in March 2021 to ₹139.01 crores in March 2025, consistent with the scale of operations. Employee costs and other expenses also rose but remained proportionate to the company’s expanding business.

Balance Sheet Strength and Capital Structure

Krishival Foods’ shareholder funds have grown substantially, from ₹19.44 crores in March 2021 to ₹135.10 crores in March 2025, reflecting retained earnings and capital infusion. The company’s reserves increased sharply, supporting this growth in net worth. Equity capital rose moderately, indicating some fresh equity issuance over the years.

Long-term borrowings have fluctuated, peaking at ₹11.16 crores in March 2025 after a dip in the previous year. Short-term borrowings have generally declined, suggesting improved liquidity management. Total liabilities expanded in line with asset growth, with total assets rising from ₹35.97 crores in March 2021 to ₹172.76 crores in March 2025. The book value per share adjusted for equity growth increased significantly, signalling enhanced shareholder value.

Cash Flow and Liquidity

Cash flow from operating activities showed marked improvement in the latest fiscal year, turning positive at ₹46 crores in March 2025 after negative cash flows in the preceding two years. This recovery indicates better working capital management and operational cash generation. Investing activities reflected increased capital expenditure, with cash outflows rising to ₹28 crores in March 2025, consistent with asset growth and capacity expansion. Financing activities saw a net outflow in the latest year, contrasting with inflows in earlier years, possibly due to debt repayments or dividend payments. The company’s closing cash and bank balances improved to ₹14.65 crores, supporting liquidity.

Summary of Historical Performance

Over the five-year period ending March 2025, Krishival Foods has exhibited strong revenue growth, expanding its market presence significantly. Profitability has improved in absolute terms, though margins have experienced some pressure in recent years. The company’s balance sheet has strengthened with rising shareholder funds and controlled borrowings, while cash flow dynamics suggest improving operational efficiency and investment in growth. Earnings per share have increased steadily, reflecting enhanced returns to shareholders.

Overall, Krishival Foods’ historical performance portrays a company in expansion mode, balancing growth with prudent financial management. Investors may consider these trends alongside sectoral and market conditions when evaluating the company’s prospects.

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 →