Revenue Growth and Operating Performance
Over the past seven years, Medico Remedies has seen its net sales rise from ₹97.69 crores in March 2019 to ₹150.94 crores in March 2025, reflecting a robust compound growth trend. The company’s total operating income mirrors this progression, with no other operating income reported, indicating a primary reliance on core business activities. Raw material costs have naturally increased in line with sales, reaching ₹111.39 crores in the latest fiscal year, while employee costs have also risen steadily, signalling investment in human capital to support expansion.
Operating profit before depreciation and interest (PBDIT) excluding other income has improved significantly, from ₹2.76 crores in 2019 to ₹15.00 crores in 2025. When factoring in other income, operating profit rose to ₹17.69 crores in the latest year, underscoring enhanced operational efficiency. The operating profit margin has expanded from a modest 2.83% in 2019 to a more respectable 9.94% in 2025, highlighting better cost management and scale benefits.
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Profitability and Earnings Trends
Profit before tax has shown a marked improvement, climbing from ₹2.18 crores in 2019 to ₹13.50 crores in 2025. Correspondingly, profit after tax (PAT) increased from ₹1.57 crores to ₹10.09 crores over the same period. The PAT margin has more than quadrupled, rising from 1.61% to 6.68%, reflecting stronger bottom-line growth relative to sales. Earnings per share (EPS) have also followed an upward trend, reaching ₹1.22 in 2025 from ₹0.87 in 2023, although EPS figures were higher in earlier years due to changes in face value and equity capital.
Interest expenses have remained relatively low and stable, supporting improved net profitability. Depreciation charges have increased moderately, consistent with asset base expansion.
Balance Sheet Strength and Asset Management
Medico Remedies’ shareholder funds have grown steadily, from ₹29.87 crores in 2020 to ₹62.47 crores in 2025, supported by rising reserves and equity capital adjustments. The company has successfully reduced long-term borrowings to zero by 2025, signalling a shift towards a less leveraged capital structure. However, short-term borrowings have increased to ₹13.83 crores, which may warrant monitoring for liquidity management.
On the asset side, net block value has increased from ₹12.55 crores in 2020 to ₹20.60 crores in 2025, indicating ongoing capital expenditure and asset additions. Current assets have also expanded significantly, with total current assets reaching ₹96.68 crores in 2025, driven by higher inventories and sundry debtors. Net current assets have improved to ₹39.71 crores, reflecting better working capital management.
Cash Flow and Liquidity Overview
Cash flow from operating activities has fluctuated over the years but showed positive trends in recent periods, with ₹2 crores generated in 2024. Investing activities have consistently been cash outflows, reflecting ongoing investments in fixed assets and business expansion. Financing activities have varied, with notable inflows in 2021 supporting growth initiatives. Overall, net cash inflow/outflow has stabilised, with closing cash and cash equivalents modest but positive in recent years.
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Summary of Historical Performance
In summary, Medico Remedies has exhibited consistent growth in revenue and profitability over the last several years, supported by prudent cost control and operational efficiencies. The company’s balance sheet has strengthened with increased equity and reduced long-term debt, while current assets and working capital have expanded to support business scale. Cash flow patterns indicate ongoing investment balanced with operational cash generation, positioning the company well for sustainable growth.
Investors seeking exposure to a steadily growing pharmaceutical player with improving margins and a solid financial foundation may find Medico Remedies an attractive proposition, especially given its recent performance improvements and strategic capital management.
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