How has been the historical performance of Minaxi Textiles?

Nov 24 2025 11:01 PM IST

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Minaxi Textiles has faced fluctuating financial performance, with net sales declining from INR 34.29 crore in March 2024 to INR 28.88 crore in March 2025, and ongoing losses reflected in negative profits and EPS. Despite a slight recovery in operating profit, the company continues to struggle with declining revenues and financial difficulties.

Revenue and Profitability Trends

Minaxi Textiles' net sales have demonstrated considerable volatility over the past seven years. The company recorded its peak sales in the fiscal year ending March 2019, with ₹44.38 crores. However, this figure declined sharply in subsequent years, reaching a low of ₹14.80 crores in March 2021. A partial recovery followed, with sales rising to ₹31.11 crores in March 2022, before dipping again to ₹28.88 crores in March 2025.

Operating profit margins have mirrored this uneven sales performance. The company posted a healthy operating margin of 11.45% in 2019, which deteriorated significantly in the following years, turning negative in 2023 at -19.03%. Although there was a modest rebound to a positive margin of 2.94% in 2025, the overall trend reflects ongoing challenges in maintaining profitability.

Profit after tax (PAT) margins have been under pressure, with losses recorded in most years since 2021. The company reported a PAT margin of -1.84% in March 2025, following a steep loss of -21.26% in 2023. Earnings per share (EPS) have correspondingly declined, moving from a modest positive in 2019 to negative values in recent years, indicating sustained net losses.

Cost Structure and Operating Expenses

The company's raw material costs have fluctuated in line with sales, peaking at ₹30.57 crores in 2024 before easing to ₹24.79 crores in 2025. Other expenses, including employee costs and miscellaneous charges, have remained relatively stable but have contributed to the pressure on margins. Notably, the company has not reported any power costs or selling and distribution expenses in recent years, which may reflect operational efficiencies or accounting classifications.

Interest expenses have remained a significant burden, consistently exceeding ₹1 crore annually and reaching ₹1.64 crores in 2025. This high interest cost has further eroded profitability, contributing to negative gross profits before depreciation and tax in several years.

Balance Sheet and Financial Position

Minaxi Textiles' balance sheet reveals a declining trend in shareholder funds, which fell from ₹15.38 crores in 2020 to just ₹2.32 crores in 2025. This erosion reflects accumulated losses and negative reserves, which stood at -₹2.62 crores in 2025. The company's total liabilities have also decreased from ₹41.75 crores in 2021 to ₹18.26 crores in 2025, indicating some deleveraging.

Long-term borrowings have reduced from ₹11.76 crores in 2023 to ₹6.59 crores in 2025, while short-term borrowings remain elevated at ₹7.75 crores. The net block of fixed assets has declined steadily, suggesting limited recent capital expenditure or asset disposals. Inventories and sundry debtors have also decreased, reflecting a contraction in operational scale.

Cash Flow and Liquidity

Cash flow from operating activities has shown modest positive figures in recent years, with ₹3 crores generated in 2025. However, the company has consistently experienced negative cash flow from financing activities, indicating repayments or reductions in borrowings. There have been no reported cash flows from investing activities, suggesting minimal investment in growth or expansion.

Despite these cash flow movements, the company maintains negligible cash and bank balances, highlighting tight liquidity conditions. The net current assets position turned negative in 2025, underscoring potential short-term funding pressures.

Summary and Outlook

Overall, Minaxi Textiles has faced a challenging period marked by declining revenues, persistent losses, and weakening equity. While there have been some signs of stabilisation in sales and operating margins in the most recent fiscal year, the company continues to grapple with high interest costs and negative profitability. The balance sheet reflects a significant reduction in net worth and ongoing liquidity constraints.

Investors should weigh these historical performance factors carefully, considering the company's ability to improve operational efficiency, manage debt, and restore profitability in a competitive textile sector environment.

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