Revenue and Operating Performance Trends
Over the seven-year period, Nahar Poly’s net sales exhibited notable volatility. Starting from ₹265.73 crores in March 2019, sales declined marginally before surging to a peak of ₹723.19 crores in March 2023. However, the subsequent years saw a dip to ₹599.93 crores in March 2024, followed by a recovery to ₹665.94 crores in March 2025. This pattern reflects the company’s exposure to market cycles and operational adjustments.
Operating profit margins, excluding other income, have mirrored this variability. The margin peaked at 24.41% in March 2022, indicating strong operational efficiency, but contracted sharply to 3.55% in March 2024 before rebounding to 11.44% in March 2025. Gross profit margins followed a similar trajectory, underscoring the impact of raw material costs and other expenses on profitability.
Raw material costs have consistently represented the largest expenditure, rising from ₹209.16 crores in March 2019 to ₹466.42 crores in March 2025. Employee costs and power expenses have also increased steadily, reflecting expansion and inflationary pressures. Despite these cost pressures, the company managed to maintain positive operating profits in most years, except for a dip in March 2024.
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Profitability and Earnings Analysis
Profit before tax (PBT) and profit after tax (PAT) figures reveal a mixed performance. The company recorded a high PBT of ₹114.36 crores in March 2022, followed by a sharp decline to a loss before tax in March 2024. However, it returned to profitability with a PBT of ₹51.37 crores in March 2025. Correspondingly, PAT peaked at ₹85.70 crores in March 2022, dropped to a loss in March 2024, and recovered to ₹35.37 crores in March 2025.
Consolidated net profit followed a similar pattern, reaching ₹97.71 crores in March 2022 before falling to ₹5.68 crores in March 2024 and rising again to ₹47.38 crores in March 2025. Earnings per share (EPS) reflected these swings, with a high of 39.75 in March 2022 and a low of 2.31 in March 2024, improving to 19.28 in March 2025. The PAT margin also fluctuated significantly, from a robust 17.53% in March 2022 to a negative margin in March 2024, before stabilising at 5.31% in the latest fiscal year.
Interest costs increased over the years, reaching ₹10.22 crores in March 2025, which impacted net profitability. Depreciation expenses also rose substantially, reflecting capital investments and asset ageing.
Balance Sheet and Financial Position
Nahar Poly’s balance sheet shows growth in shareholder’s funds from ₹390.51 crores in March 2020 to ₹801.71 crores in March 2025, indicating strengthening equity base. Total reserves have more than doubled from ₹377.94 crores in March 2020 to ₹789.13 crores in March 2025, supporting financial stability.
Total liabilities peaked at ₹1,144.07 crores in March 2022 before declining to ₹948.00 crores in March 2025. Long-term borrowings have decreased from ₹145.28 crores in March 2022 to ₹78.22 crores in March 2025, signalling deleveraging efforts. Short-term borrowings also reduced from ₹27.88 crores in March 2022 to ₹17.28 crores in March 2025.
Asset-wise, the net block of fixed assets declined from ₹292.62 crores in March 2022 to ₹209.90 crores in March 2025, possibly due to depreciation outpacing capital expenditure. Non-current investments remain substantial, though they have decreased from ₹714.54 crores in March 2022 to ₹576.19 crores in March 2025. Current assets have increased steadily, reaching ₹144.12 crores in March 2025, with net current assets improving to ₹98.94 crores.
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Cash Flow and Liquidity Overview
Cash flow from operating activities has been inconsistent, with a notable negative cash flow in March 2022 but positive inflows in other years, including ₹16 crores in March 2024 and ₹109 crores in March 2023. Investing activities consistently showed cash outflows, reflecting ongoing capital expenditure and investments. Financing activities fluctuated, with significant inflows in March 2022 and outflows in subsequent years, indicating active debt management and capital restructuring.
Closing cash and cash equivalents varied widely, from a low of ₹0.00 crores in March 2020 to ₹33 crores in March 2023, highlighting liquidity management challenges. Overall, the company has maintained adequate liquidity to support operations despite market fluctuations.
Conclusion
Nahar Poly’s historical performance reveals a company navigating cyclical industry conditions with periods of strong growth and profitability interspersed with challenges. The firm’s ability to rebound from losses and maintain a solid equity base is a positive indicator. However, investors should note the volatility in margins, fluctuating cash flows, and debt levels. Careful monitoring of cost management and capital allocation will be crucial for sustained performance going forward.
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