How has been the historical performance of Krishna Institu.?

Revenue and Profit Growth

Over the period from March 2020 to March 2025, Krishna Institu. has seen its net sales surge from ₹1,122.65 crores to ₹3,035 crores, reflecting a compound growth trajectory. This steady increase underscores the company’s expanding market presence and operational scale. Total operating income mirrored this trend, with no other operating income reported, indicating that core business activities have been the primary revenue drivers.

Operating profit before depreciation, interest, and tax (PBDIT) excluding other income rose significantly from ₹245 crores in March 2020 to ₹782.7 crores in March 2025. Including other income, operating profit reached ₹814.6 crores in the latest fiscal year, up from ₹251.08 crores five years prior. This growth in operating profitability is complemented by an improvement in operating profit margin, which has generally hovered around the mid-20% range, peaking at over 31% in earlier years before stabilising near 25.8% recently.

Profit before tax (PBT) increased from ₹140.53 crores in March 2020 to ₹557.9 crores in March 2025, while profit after tax (PAT) rose from ₹115.07 crores to ₹414.5 crores over the same period. The consolidated net profit followed a similar upward trend, reaching ₹384.5 crores in the latest year. Despite fluctuations in earnings per share (EPS) due to changes in face value and other factors, the overall earnings growth remains strong, with the latest EPS at ₹9.61.

Expenditure and Margins

Total expenditure excluding depreciation has risen in line with revenue, from ₹877.65 crores in March 2020 to ₹2,252.3 crores in March 2025. Notably, purchase of finished goods and employee costs have increased steadily, reflecting scaling operations and workforce expansion. Other expenses have also grown substantially, indicating higher operational costs associated with business growth.

Despite rising costs, Krishna Institu. has maintained healthy gross profit margins, averaging around 24% to 31% over the years. The PAT margin has also remained respectable, fluctuating between 10.25% and 20.83%, with the latest fiscal year reporting a margin of 13.66%. This balance between revenue growth and cost management highlights the company’s operational efficiency.

Balance Sheet Strength and Liabilities

The company’s total assets have expanded markedly, from ₹1,194.47 crores in March 2020 to ₹5,676.1 crores in March 2025. This growth is driven by increases in net block (fixed assets) and capital work in progress, which surged from ₹2.23 crores to ₹1,213.8 crores, signalling ongoing investments in capacity and infrastructure. Shareholder’s funds have more than tripled, reaching ₹2,137.8 crores, supported by rising reserves.

However, total liabilities have also increased significantly, primarily due to a rise in long-term borrowings from ₹268.72 crores to ₹1,654.1 crores. Short-term borrowings and current liabilities have similarly grown, reflecting higher working capital requirements. The company’s total debt stood at ₹1,906 crores in March 2025, up from ₹278.83 crores five years earlier, indicating a more leveraged capital structure.

Book value per share, adjusted for changes, has increased from ₹80.25 in March 2020 to ₹53.45 in March 2025, with fluctuations attributable to changes in equity structure and reserves.

Cash Flow Analysis

Krishna Institu.’s cash flow from operating activities has shown a positive trend, rising from ₹201 crores in March 2020 to ₹581 crores in March 2025. This reflects improved core business cash generation. Conversely, cash flow from investing activities has been consistently negative, indicative of ongoing capital expenditure and investments, reaching an outflow of ₹1,115 crores in the latest year.

Financing activities have contributed positively in recent years, with cash inflows of ₹543 crores in March 2025, supporting the company’s expansion and debt servicing. Net cash inflow/outflow has been relatively stable, with a small positive inflow of ₹9 crores in the latest fiscal year. Closing cash and cash equivalents stood at ₹56 crores, showing a modest increase from previous years.

Summary of Historical Performance

In summary, Krishna Institu. has exhibited strong historical financial performance characterised by substantial revenue growth, improving profitability, and significant asset base expansion. The company’s ability to maintain healthy margins despite rising costs and leverage its balance sheet for growth investments is noteworthy. While increased debt levels warrant monitoring, the firm’s consistent cash flow generation and rising shareholder funds provide a solid foundation for future prospects.

Investors analysing Krishna Institu. should consider both its impressive growth trajectory and the evolving capital structure to make informed decisions aligned with their risk appetite and investment horizon.

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