Revenue and Profitability Trends
Raghuvir Synth's net sales have shown a robust upward trajectory, rising from ₹174.21 crores in March 2021 to ₹332.57 crores in March 2025. This represents a near doubling of sales over four years, with a notable dip in March 2023 when sales fell to ₹93.47 crores before rebounding sharply. Total operating income mirrored this pattern, reflecting the company's core business strength without reliance on other operating income, which remained nil throughout.
Operating profit (PBDIT) excluding other income improved from ₹7.51 crores in March 2021 to ₹16.34 crores in March 2025, despite a negative margin in March 2023. The operating profit margin excluding other income fluctuated between 3.27% and 5.35%, with a low point in 2023 reflecting operational challenges. Other income contributed positively each year, supporting overall operating profit which reached ₹20.48 crores in the latest fiscal year.
Profit before tax and profit after tax followed a similar recovery path. After a loss before tax of ₹11.31 crores in March 2023, the company returned to profitability with ₹8.72 crores in March 2025. Correspondingly, consolidated net profit improved from a loss of ₹9.83 crores in 2023 to a gain of ₹9.03 crores in 2025. Earnings per share (EPS) reflected this turnaround, moving from a negative ₹2.53 in 2023 to a positive ₹2.33 in 2025, indicating enhanced shareholder value.
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Cost Structure and Margins
The company’s cost of raw materials rose substantially in line with sales growth, from ₹125.15 crores in 2021 to ₹254.85 crores in 2025. Purchase of finished goods showed a declining trend, indicating a shift towards greater in-house production or sourcing efficiencies. Employee costs remained relatively stable, around ₹7.44 crores in 2025, while other expenses increased moderately to ₹50.52 crores.
Despite rising costs, Raghuvir Synth managed to maintain gross profit margins above 5% in recent years, recovering from a negative margin in 2023. The profit after tax margin improved to 2.7% in 2025, up from a low of -10.52% in 2023, signalling better cost control and operational efficiency.
Balance Sheet and Financial Position
Shareholders’ funds increased steadily from ₹27.76 crores in 2021 to ₹35.20 crores in 2025, supported by growing reserves. The company’s total liabilities rose to ₹125.96 crores in 2025 from ₹69.86 crores in 2021, largely due to increased long-term borrowings which more than doubled to ₹30.21 crores. Short-term borrowings also increased moderately.
On the asset side, net block (fixed assets) expanded significantly to ₹58.27 crores in 2025, reflecting capital investments. Capital work in progress rose to ₹7.96 crores, indicating ongoing expansion. Current assets grew to ₹53.40 crores, with inventories and cash balances increasing, although net current assets remained negative, suggesting working capital pressures.
Cash Flow Analysis
Operating cash flow improved consistently, reaching ₹23 crores in 2025, up from ₹5 crores in 2021. This was supported by positive adjustments and working capital changes. Investing activities remained cash outflows due to capital expenditure, while financing activities showed net outflows in recent years, reflecting debt repayments or reduced borrowings. The company ended 2025 with a healthy cash and bank balance of ₹8 crores, a significant increase from previous years.
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Summary and Outlook
Raghuvir Synth’s historical performance reveals a company that has navigated through a difficult phase in 2023 with losses and negative margins, but has since demonstrated a strong recovery in sales, profitability, and cash flow. The steady increase in net sales and operating profits, alongside improved earnings per share and a stronger balance sheet, indicate a positive trajectory. However, the rise in borrowings and working capital challenges warrant close monitoring.
Investors should consider these factors in the context of the company’s sector dynamics and growth prospects. The recent financial improvements suggest that Raghuvir Synth is on a path to stabilisation and potential expansion, making it a noteworthy candidate for further analysis within its industry segment.
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