Revenue and Profitability Trends
The company’s net sales have shown a general upward trend, rising from ₹137.29 crores in March 2019 to ₹424.47 crores by March 2025. Despite some volatility, notably a dip in fiscal 2024 to ₹320.95 crores, Nath Industries has managed to more than triple its sales over the six-year period. Operating profit margins excluding other income have varied, peaking at 10.11% in 2021 before contracting to 6.27% in 2025. The operating profit (PBDIT) excluding other income also reflects this variability, with a high of ₹29.50 crores in 2021 and a recent figure of ₹26.60 crores in 2025.
Profit after tax (PAT) has experienced notable fluctuations, reaching ₹18.21 crores in 2020 and then declining to ₹9.74 crores in 2025. The PAT margin similarly contracted from a peak of 6.09% in 2020 to 2.29% in 2025, indicating pressure on net profitability despite revenue growth. Earnings per share (EPS) followed a comparable pattern, with a high of 9.58 in 2020 and a lower 5.13 in 2025, reflecting the impact of profit variability on shareholder returns.
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Cost Structure and Expenditure
Raw material costs have scaled in line with sales, increasing from ₹67.55 crores in 2019 to ₹279.52 crores in 2025. Other expenses have also risen substantially, from ₹31.70 crores in 2019 to ₹92.32 crores in 2025, reflecting the company’s expanding operational scale. Employee costs have grown steadily, reaching ₹21.57 crores in 2025, up from ₹5.21 crores in 2019. Total expenditure excluding depreciation has mirrored these trends, rising from ₹128.79 crores in 2019 to ₹397.87 crores in 2025.
Interest expenses have increased notably, from ₹1.97 crores in 2019 to ₹12.14 crores in 2025, signalling a higher debt burden. Depreciation charges have also risen, consistent with asset growth, standing at ₹9.55 crores in 2025 compared to ₹2.52 crores in 2019.
Balance Sheet and Financial Position
Shareholder’s funds have grown steadily, from ₹213.49 crores in 2020 to ₹253.54 crores in 2025, supported by rising reserves. The company’s total liabilities have increased from ₹344.60 crores in 2020 to ₹451.36 crores in 2025, with total debt rising from ₹62.77 crores to ₹124.12 crores over the same period. This increase in leverage is reflected in the growing interest costs and suggests a more aggressive capital structure.
On the asset side, net block values have increased from ₹205.18 crores in 2020 to ₹280.53 crores in 2025, indicating ongoing capital investment. Current assets have also expanded, reaching ₹140.02 crores in 2025, with inventories and sundry debtors showing consistent growth. Cash and bank balances, however, have remained relatively low, signalling limited liquidity buffers.
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Cash Flow and Operational Efficiency
Cash flow from operating activities has fluctuated, peaking at ₹30 crores in 2024 but falling to ₹13 crores in 2025. Investing activities have generally been cash outflows, reflecting capital expenditure and asset acquisitions, with ₹3 crores inflow in 2025 contrasting with significant outflows in prior years. Financing activities have varied widely, with a notable outflow of ₹24 crores in 2025 following inflows in earlier years, indicating active management of debt and equity financing.
Net cash inflow/outflow has been volatile, with a negative ₹6 crores in 2025 after a positive ₹6 crores in 2024. The company’s cash and cash equivalents have remained minimal, underscoring a tight liquidity position despite operational cash generation.
Summary of Historical Performance
Overall, Nath Industries has experienced a mixed financial journey characterised by strong revenue growth but fluctuating profitability and increasing leverage. The company’s ability to expand its asset base and shareholder funds is balanced by rising interest costs and modest net profit margins. Operational cash flows remain positive but constrained, while liquidity levels are limited. Investors should weigh these factors carefully, considering both the growth potential and financial risks inherent in the company’s recent performance.
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