How has been the historical performance of Phantom Digital?

Revenue and Profitability Trends

In the fiscal year ending March 2025, Phantom Digital reported consolidated net sales of ₹102.16 crores, marking a significant rise from ₹89.33 crores in the previous year. This growth reflects the company’s expanding operational scale. However, the operating profit margin excluding other income declined from 42.46% in March 2024 to 36.69% in March 2025, indicating increased expenditure pressures.

Operating profit (PBDIT) remained relatively stable, with a slight dip from ₹37.93 crores to ₹37.48 crores, while other income nearly doubled to ₹2.21 crores, supporting the overall operating profit to ₹39.69 crores. Despite this, interest expenses more than doubled to ₹4.14 crores, impacting the gross profit before depreciation and tax, which fell to ₹35.55 crores from ₹37.23 crores.

Profit before tax decreased to ₹28.03 crores from ₹32.68 crores, and after accounting for taxes, the consolidated net profit stood at ₹20.20 crores, down from ₹24.11 crores the previous year. Earnings per share (EPS) correspondingly declined to ₹14.87 from ₹17.75, reflecting the margin pressures despite revenue growth.

Balance Sheet and Financial Position

Phantom Digital’s shareholder funds increased to ₹164.95 crores from ₹144.74 crores, supported by a rise in reserves to ₹151.37 crores. The company’s total liabilities grew to ₹227.80 crores from ₹180.09 crores, driven primarily by a doubling of total debt to ₹42.04 crores, including both long-term and short-term borrowings.

On the asset side, total assets rose to ₹227.80 crores from ₹180.09 crores, with current assets increasing substantially to ₹188.02 crores, up from ₹132.43 crores. This was largely due to higher sundry debtors and short-term loans and advances, which surged to ₹85.88 crores and ₹39.46 crores respectively. Inventories also increased moderately to ₹40.73 crores.

The company’s net block of fixed assets remained stable at around ₹18.52 crores, while capital work in progress slightly decreased. Book value per share improved to ₹121.47 from ₹106.59, reflecting enhanced net worth despite the rise in debt levels.

Cash Flow and Liquidity Analysis

Cash flow from operating activities remained negative, though the outflow narrowed significantly to ₹18 crores from ₹54 crores the previous year. This improvement was partly due to a reduced adverse impact from changes in working capital, which stood at -₹53 crores compared to -₹84 crores earlier.

Investing activities generated a positive cash flow of ₹2 crores, a turnaround from a ₹20 crore outflow in the prior year. Financing activities saw a sharp decline in inflows to ₹17 crores from ₹88 crores, indicating a more cautious approach to external funding.

Overall, the company maintained a stable cash and cash equivalents position at ₹19 crores, slightly up from ₹18 crores, underscoring prudent liquidity management amid operational challenges.

Summary of Historical Performance

Phantom Digital’s historical performance over the last fiscal year reflects a company in growth mode, with revenue expanding by over 14% year-on-year. However, profitability margins have contracted due to rising costs and higher interest expenses. The company’s balance sheet shows strengthening net worth and reserves, albeit accompanied by increased leverage.

Cash flow trends suggest improving operational efficiency, though working capital remains a challenge. The stable cash position provides a buffer as the company navigates these pressures. Investors should weigh the growth prospects against margin compression and debt levels when assessing Phantom Digital’s financial health.

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