Revenue and Operating Income Trends
Examining the consolidated annual results, Nihar Info Glob.'s net sales demonstrated an uneven pattern. The company recorded ₹5.30 crores in net sales for the fiscal year ending March 2023, which declined sharply to ₹3.21 crores in March 2024. However, the latest fiscal year ending March 2025 saw a significant rebound with net sales rising to ₹7.72 crores, more than doubling the previous year’s figure. This recovery in sales is a positive indicator of renewed demand or improved market positioning.
Other operating income remained negligible throughout the period, contributing no additional revenue. Consequently, total operating income mirrored net sales closely, reflecting the company’s reliance on core business activities.
Cost Structure and Expenditure
Despite the increase in revenue in the latest year, total expenditure excluding depreciation surged to ₹11.08 crores in March 2025, up from ₹6.78 crores in the prior year and ₹5.01 crores in March 2023. This rise was primarily driven by manufacturing expenses, which escalated to ₹7.94 crores in the latest year from ₹3.49 crores the year before. Other expenses also increased significantly to ₹3.47 crores compared to ₹3.59 crores and ₹0.23 crores in the preceding years. Employee costs remained relatively stable but low, indicating a lean workforce or outsourcing.
The company reported negative stock changes, indicating an increase in inventory levels, which may have tied up working capital.
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Profitability and Margins
The company’s operating profit before depreciation, interest, and tax (PBDIT) has been negative for the last two years, with a slight positive in March 2023 at ₹0.29 crores. This turned into losses of ₹3.57 crores and ₹3.36 crores in March 2024 and March 2025 respectively. The operating profit margin, excluding other income, deteriorated from a positive 5.47% in 2023 to a negative 111.21% in 2024, before improving somewhat to -43.52% in 2025. This indicates that despite revenue growth, the company’s cost base expanded disproportionately, eroding profitability.
Gross profit margin followed a similar trend, plunging from 2.45% in 2023 to -116.51% in 2024, and recovering to -45.6% in 2025. The net profit after tax also reflected this pattern, with a marginal profit of ₹0.09 crores in 2023 turning into losses of ₹3.76 crores and ₹3.57 crores in the subsequent years. The PAT margin worsened from a positive 1.7% to negative 117.13% and -46.24% respectively.
Balance Sheet and Equity Position
Equity capital remained constant at ₹10.41 crores over the three years, with a face value of ₹10 per share. However, reserves have turned negative, declining from a positive ₹2.94 crores in 2023 to a deficit of ₹4.42 crores in 2025, signalling accumulated losses and erosion of net worth. Minority interest was marginally negative in the last two years, indicating minor losses attributable to minority shareholders.
Cash Flow Analysis
Cash flow from operating activities showed improvement in March 2024 with an inflow of ₹3.00 crores, following a negative cash flow of ₹2.00 crores in 2023. However, in the latest year, operating cash flow was neutral at zero. Investing activities remained inactive, with no significant cash movements recorded. Financing activities also showed no cash inflows or outflows in the last two years, suggesting no fresh capital infusion or debt repayment.
Opening cash and cash equivalents were negative at ₹1.00 crore in both 2024 and 2025, with the closing cash position remaining negative at ₹-1.00 crore in 2025, indicating liquidity constraints. The company’s net cash inflow/outflow was zero in the latest year, following a positive ₹3.00 crores inflow in 2024.
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Summary and Outlook
In summary, Nihar Info Glob. has shown a mixed historical performance characterised by fluctuating revenues and persistent losses over the past three fiscal years. While the latest year saw a commendable recovery in net sales, the company’s profitability remains under pressure due to rising manufacturing and other expenses. Negative operating and net margins highlight ongoing challenges in cost control and operational efficiency.
The deteriorating reserves and negative cash balances point to financial strain, which could impact the company’s ability to invest and grow sustainably without external support. Investors should closely monitor future quarterly results and management’s strategic initiatives aimed at improving margins and cash flow generation.
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