Revenue and Profitability Trends
Over the seven-year period ending March 2025, NGL Fine Chem’s net sales exhibited a robust upward trend, rising from ₹153.17 crores in 2018-19 to ₹368.26 crores in 2024-25. This represents a compound growth trajectory, albeit with some volatility, such as a dip in 2020-21 followed by a recovery. Total operating income mirrored this pattern, reflecting the company’s core business expansion.
Operating profit before depreciation and interest (PBDIT excluding other income) showed considerable variation, peaking at ₹79.74 crores in 2020-21 before declining to ₹33.87 crores in 2024-25. Including other income, operating profit followed a similar pattern, reaching a high of ₹87.76 crores in 2020-21 and settling at ₹42.50 crores in the latest fiscal year. Profit before tax and profit after tax also reflected this volatility, with PAT decreasing from ₹56.72 crores in 2020-21 to ₹21.12 crores in 2024-25.
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Margins and Cost Structure
The company’s operating profit margin excluding other income has seen a downward trend from a high of 30.91% in 2020-21 to 9.2% in 2024-25, indicating rising costs or pricing pressures. Gross profit margin similarly declined from 33.31% to 10.91% over the same period. The PAT margin followed suit, dropping from 21.99% to 5.74%. Raw material costs and employee expenses have increased in absolute terms, reflecting the company’s scale-up, while other expenses have also risen steadily.
Balance Sheet and Financial Position
NGL Fine Chem’s shareholder funds have grown substantially, from ₹98.96 crores in 2019 to ₹282.43 crores in 2025, supported by rising reserves. The company’s total liabilities have also increased, reaching ₹433.39 crores in 2025, with a notable rise in both short-term and long-term borrowings, indicating increased leverage. Net block of fixed assets expanded from ₹67.74 crores in 2020 to ₹142.67 crores in 2025, alongside significant capital work in progress, signalling ongoing investments in capacity or infrastructure.
Cash Flow Analysis
Operating cash flow has fluctuated, with ₹35 crores generated in 2024-25, up from ₹20 crores the previous year. Investing activities consistently show cash outflows, reflecting capital expenditure commitments. Financing activities have remained relatively stable with minor outflows. The net cash position has been largely neutral in recent years, with closing cash and equivalents varying but generally modest.
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Summary of Historical Performance
In summary, NGL Fine Chem has experienced significant growth in sales and shareholder equity over the past several years, supported by strategic investments and expanding operations. However, profitability margins have contracted notably since their peak in 2020-21, suggesting challenges in cost management or market conditions. The company’s increasing leverage and capital expenditure indicate a focus on future growth, though investors should monitor margin trends and debt levels closely. Cash flow generation remains positive but modest relative to the scale of investment.
Overall, the historical performance of NGL Fine Chem reflects a company in transition, balancing expansion with profitability pressures, and positioning itself for potential long-term value creation.
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