Revenue and Profit Growth
Raaj Medisafe’s net sales have shown a robust upward trajectory, rising from a modest ₹4.80 crores in March 2019 to ₹62.42 crores by March 2025. This represents a significant expansion in scale, particularly notable given the relatively low base in earlier years. The company’s total operating income mirrors this growth, with no other operating income reported, indicating that core business activities have driven revenue increases.
Profitability has improved markedly. Operating profit before depreciation and interest (PBDIT) excluding other income shifted from negative territory in 2019 and 2020 to a positive ₹8.63 crores in the latest fiscal year. Correspondingly, profit after tax (PAT) turned positive from losses of ₹1.59 crores in 2019 and ₹1.36 crores in 2020 to a healthy ₹6.13 crores in March 2025. Earnings per share (EPS) followed suit, rising from negative values to ₹4.46, reflecting improved shareholder returns.
Operating profit margins have stabilised around the mid-teens percentage range, with the latest year’s margin at 13.83%, a slight dip from the previous year’s 15.35% but still indicative of operational efficiency gains compared to early losses. PAT margins have also improved substantially, reaching 9.82% in March 2025, up from deeply negative margins in prior years.
Handpicked from 50, scrutinized by experts – Our recent selection, this Mid Cap from Bank - Public, is already delivering results. Don't miss next month's pick!
- - Expert-scrutinized selection
- - Already delivering results
- - Monthly focused approach
Cost Structure and Expenditure
The company’s raw material costs have scaled in line with revenue, increasing from ₹3.05 crores in 2019 to ₹43.03 crores in 2025. Notably, the purchase of finished goods appeared only in the latest year, amounting to ₹1.46 crores, suggesting some diversification in sourcing or product mix. Employee costs have also risen steadily, reflecting workforce expansion or wage inflation, reaching ₹3.92 crores in the latest year.
Other expenses have increased proportionally but remain controlled relative to revenue growth. The total expenditure excluding depreciation rose from ₹5.58 crores in 2019 to ₹53.79 crores in 2025, consistent with the company’s scaling operations. Depreciation has also increased, reflecting asset additions and capital investments.
Balance Sheet Strength and Capitalisation
Raaj Medisafe’s balance sheet has strengthened considerably. Shareholder’s funds improved from a negative ₹1.19 crores in 2020 to a positive ₹26.92 crores in 2025, driven by accumulated reserves turning positive after years of deficits. The equity capital has increased, supporting the company’s growth and capital requirements.
Total liabilities have expanded in line with business growth, reaching ₹68.06 crores in 2025 from ₹13.59 crores in 2020. Long-term borrowings have more than doubled since 2020, indicating increased leverage to fund expansion, while short-term borrowings have also risen significantly. Despite this, the company’s book value per share has improved substantially, rising from a negative ₹1.09 in 2020 to ₹20.42 in 2025, signalling enhanced net asset value per share.
Asset Base and Investments
The company’s net block of fixed assets has grown from ₹7.03 crores in 2020 to ₹23.06 crores in 2025, reflecting ongoing capital expenditure and capacity expansion. Capital work in progress has also increased, indicating ongoing investments in infrastructure or technology. Non-current assets have nearly quintupled over five years, supporting the company’s operational scale.
Current assets have expanded from ₹6.28 crores in 2020 to ₹29.62 crores in 2025, driven by increases in inventories and sundry debtors, consistent with higher sales volumes. Cash and bank balances remain minimal, suggesting working capital is largely tied up in operations.
Holding Raaj Medisafe from Packaging? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Cash Flow and Financial Health
Cash flow from operating activities has fluctuated, with positive inflows in some years and zero in the latest fiscal year. The company has invested heavily in capital expenditure, as reflected by significant negative cash flow from investing activities, particularly in the last two years. Financing activities have provided substantial inflows, indicating reliance on external funding to support growth initiatives.
Despite the increased borrowings, Raaj Medisafe has managed to improve profitability and shareholder equity, suggesting effective utilisation of capital. The company’s ability to convert profit into cash flow remains an area to monitor as it continues its expansion trajectory.
Summary
Overall, Raaj Medisafe’s historical performance reveals a company in transition from early losses to sustained growth and profitability. Revenue and profit margins have improved steadily, supported by expanding asset base and capital investments. While leverage has increased, the company’s net worth and earnings per share have turned positive, signalling enhanced financial stability. Investors should weigh the company’s growth potential against its rising debt levels and working capital demands as it continues to scale operations.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
