Revenue and Operating Performance Trends
Examining the net sales figures, Nagreeka Exports recorded its peak revenue in the fiscal year ending March 2019 at ₹606.49 crores. Subsequently, the company experienced a decline in sales, with notable fluctuations over the years. For instance, sales dropped to ₹385.01 crores in March 2021, rebounded to ₹551.79 crores in March 2022, and then moderated to ₹528.86 crores by March 2025. This volatility reflects the challenges and market dynamics faced by the company in recent years.
Operating profit margins, excluding other income, have generally hovered between 3.28% and 5.10% during this period, peaking in March 2022 at 5.10%. The operating profit (PBDIT) itself showed a similar pattern, with a low of ₹7.26 crores in March 2021 and a high of ₹28.13 crores in March 2022. Despite these fluctuations, the company maintained positive operating profitability in most years, except for a significant dip in 2021.
Raw material costs and purchase of finished goods constitute the major components of expenditure, with raw material costs ranging from ₹124.76 crores in 2021 to ₹226.55 crores in 2022, and purchases of finished goods varying widely, peaking at ₹280.82 crores in 2019. Other expenses remained relatively stable, averaging around ₹60-70 crores annually.
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Profitability and Earnings Analysis
Profit before tax (PBT) and profit after tax (PAT) figures reveal a mixed performance. The company posted a loss before tax of ₹-13.70 crores in March 2021, which was followed by recovery to a PBT of ₹8.08 crores in March 2022 and ₹4.01 crores in March 2025. Correspondingly, PAT swung from a loss of ₹-8.33 crores in 2021 to profits exceeding ₹6 crores in 2022, before settling at ₹3.16 crores in 2025.
Earnings per share (EPS) followed this trend, with a negative EPS of -6.65 in 2021, rebounding to 2.7 in 2022, and moderating to 1.01 in 2025. The PAT margin remained modest, peaking at 1.12% in 2022 and declining to 0.6% in 2025, indicating tight profitability despite revenue fluctuations.
Balance Sheet and Financial Position
On the balance sheet front, shareholder’s funds have shown steady growth, rising from ₹100.80 crores in 2021 to ₹153.27 crores in 2025. The company’s total reserves also increased from ₹94.54 crores in 2021 to ₹137.64 crores in 2025, reflecting retained earnings and capital accumulation.
However, Nagreeka Exports carries a significant debt burden, with total debt decreasing from ₹207.60 crores in 2021 to ₹165.12 crores in 2025. Long-term borrowings have been reduced substantially from ₹41.61 crores in 2021 to ₹18.47 crores in 2025, while short-term borrowings remain elevated, indicating reliance on working capital financing.
The company’s total assets have remained relatively stable around ₹350-360 crores over the years, with net block assets declining from ₹118.03 crores in 2021 to ₹93.14 crores in 2025, possibly due to depreciation and limited capital expenditure.
Cash Flow and Liquidity Position
Cash flow from operating activities has been inconsistent, with a negative cash flow of ₹-2 crores in 2024 but positive inflows of ₹15 crores in 2025. Investing activities have been largely neutral, while financing activities showed a net outflow of ₹14 crores in 2025, indicating debt repayments or dividend payments. The closing cash and cash equivalents improved to ₹3 crores in 2025 from ₹1 crore in 2024, suggesting a modest enhancement in liquidity.
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Summary of Historical Performance
Overall, Nagreeka Exports has demonstrated resilience amid fluctuating market conditions. While revenue and profitability have experienced ups and downs, the company has managed to maintain positive operating margins and gradually strengthen its equity base. The reduction in long-term debt and improvement in cash flows in recent years are positive signs, although the persistent high short-term borrowings warrant attention.
Investors should note the modest profit margins and earnings volatility, which reflect the competitive and cyclical nature of the garment export sector. The company’s ability to manage costs, optimise working capital, and sustain operational efficiency will be critical for future growth and value creation.
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