How has been the historical performance of Nagreeka Cap.?

Revenue and Operating Income Trends

Examining Nagreeka Cap.'s net sales reveals a sharp decline from ₹153.57 crores in March 2019 to a low of ₹4.75 crores in March 2021, followed by a recovery to ₹55.05 crores by March 2025. Other operating income has been inconsistent, peaking at ₹17.25 crores in March 2024 but generally remaining modest. Consequently, total operating income mirrored these fluctuations, dropping steeply to ₹10.90 crores in 2021 before rebounding to ₹57.13 crores in 2025. This volatility suggests challenges in maintaining steady sales momentum, possibly reflecting market or operational headwinds.

Profitability and Margins

Operating profit (PBDIT) excluding other income swung from negative territory in 2019 and 2020, with losses exceeding ₹40 crores, to a positive ₹17.04 crores in 2025. Including other income, operating profit improved to ₹25.16 crores in 2025, indicating a stronger core business and supplementary income streams. Interest expenses have steadily decreased from ₹26.17 crores in 2019 to ₹6.22 crores in 2025, easing financial burdens. Profit before tax turned positive in 2022 and strengthened to ₹25.12 crores by 2025. Correspondingly, profit after tax recovered from significant losses in 2019 and 2020 to a robust ₹18.56 crores in 2025. Operating profit margins excluding other income improved markedly to 30.95% in 2025, while PAT margins rose to 33.71%, reflecting enhanced operational efficiency and cost management.

Balance Sheet and Financial Position

Shareholder's funds have shown a recovery from negative net worth in 2023 to ₹21.13 crores in 2025, signalling restored equity strength. The company has maintained a consistent equity capital base of ₹6.31 crores throughout the period. Total liabilities increased from ₹33.87 crores in 2021 to ₹105.38 crores in 2025, largely driven by current liabilities and short-term borrowings, which stood at ₹95.24 crores in 2025. Deferred tax liabilities remain substantial but have decreased from ₹-85.91 crores in 2020 to ₹-25.98 crores in 2025. Total assets grew to ₹105.38 crores in 2025, supported by stable net block assets and significant long-term loans and advances. Inventories have increased steadily, reaching ₹54.69 crores in 2025, which may indicate stock accumulation or operational scaling.

Cash Flow and Liquidity

Cash flow from operating activities has been positive in recent years, with ₹3 crores generated in 2025 after a peak of ₹82 crores in 2020. However, changes in working capital have been a drag in 2025, with a negative ₹28 crores impact, reflecting increased inventory or receivables. Financing activities have seen net outflows, including ₹6 crores in 2025, suggesting debt repayments or capital restructuring. The closing cash and cash equivalents were negligible in 2025, indicating tight liquidity management. Overall, the cash flow profile points to cautious operational cash management amid fluctuating business conditions.

Summary and Outlook

In summary, Nagreeka Cap. has undergone a turbulent financial journey marked by steep declines in revenue and profitability during 2019-2021, followed by a notable recovery through 2025. The company has successfully returned to profitability with improved margins and strengthened equity, despite elevated liabilities and working capital challenges. Investors should note the significant swings in earnings per share, which reflect the underlying volatility in business performance. While the balance sheet shows increased borrowings, the reduction in interest expenses and positive operating cash flows are encouraging signs. Continued focus on managing inventories and receivables will be crucial for sustaining financial health going forward.

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