Revenue and Profitability Trends
Examining the net sales figures, Natl. Plastic experienced notable volatility. The company’s revenue peaked at over ₹114 crores in fiscal years 2020 and 2019, followed by a decline to approximately ₹76 crores in 2021. A recovery phase ensued with revenues rising to ₹112 crores in 2023, before tapering slightly to ₹96.95 crores in 2025. This pattern reflects the company’s sensitivity to market conditions and operational challenges.
Operating profit margins (excluding other income) have generally improved over the period, rising from a modest 5.09% in 2020 to a more robust 9.06% in 2025. The operating profit (PBDIT) peaked at ₹12 crores in 2023, before moderating to ₹9.4 crores in 2025. Despite fluctuations, the company maintained positive operating profitability, signalling operational efficiency gains amid revenue variability.
Profit after tax (PAT) has also shown an upward trend, with a significant jump to ₹3.75 crores in 2025 from ₹1.62 crores in 2024. Earnings per share (EPS) mirrored this improvement, rising to ₹4.11 in 2025 from ₹1.77 the previous year. The PAT margin improved to 3.87% in 2025, indicating better bottom-line performance relative to sales.
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Cost Structure and Expenditure Analysis
Raw material costs have consistently represented the largest expense, ranging from ₹49.94 crores in 2021 to ₹80.60 crores in 2020. Despite fluctuations in raw material costs, the company managed to control other expenses, which hovered around ₹20 crores annually. Employee costs showed a gradual increase, reaching ₹7.60 crores in 2025, reflecting possible workforce expansion or wage inflation.
Total expenditure excluding depreciation has generally tracked revenue trends, peaking at ₹108.38 crores in 2020 and declining to ₹88.17 crores in 2025. This alignment suggests the company’s efforts to manage costs in line with sales fluctuations.
Balance Sheet and Financial Position
Natl. Plastic’s shareholder funds have steadily increased from ₹27.41 crores in 2020 to ₹41.87 crores in 2025, supported by rising reserves. The book value per share improved from ₹30.03 in 2020 to ₹45.86 in 2025, indicating enhanced net asset value for shareholders.
On the liabilities side, total debt has decreased significantly from ₹40.39 crores in 2020 to ₹23.22 crores in 2025, reflecting a reduction in financial leverage. Long-term borrowings have nearly halved over this period, while short-term borrowings also declined, signalling improved debt management and potentially lower interest burden.
Current liabilities have similarly reduced from ₹46.57 crores in 2020 to ₹25.97 crores in 2025, contributing to a healthier working capital position. Total assets contracted from ₹94.87 crores in 2020 to ₹82.14 crores in 2025, consistent with the company’s scaled-down operations in recent years.
Cash Flow and Liquidity
Cash flow from operating activities has fluctuated, peaking at ₹16 crores in 2024 before settling at ₹10 crores in 2025. Investing activities consistently showed outflows, reflecting ongoing capital expenditure or asset acquisitions. Financing activities revealed significant outflows in 2025, primarily due to debt repayments, aligning with the company’s deleveraging strategy.
Despite these outflows, the company maintained a positive net cash flow in most years, except for a net outflow of ₹12 crores in 2025. The closing cash and cash equivalents stood at a modest ₹0.30 crores in 2025, down from ₹12 crores in 2024, indicating tighter liquidity.
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Summary and Investor Considerations
Overall, Natl. Plastic’s historical performance reveals a company that has navigated through periods of revenue volatility and margin pressure while steadily improving its profitability and financial health. The reduction in debt and increase in shareholder funds are positive indicators of balance sheet strengthening. However, the recent dip in sales and cash reserves suggests cautious monitoring is warranted.
Investors should weigh the company’s operational resilience against market challenges and consider its improving earnings per share and book value as signs of underlying value. The company’s ability to manage costs and reduce leverage may position it well for future growth, provided market conditions stabilise.
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