Revenue and Profitability Trends
Rajratan Global’s net sales have shown a consistent upward trend, rising from ₹492.89 crores in March 2019 to ₹935.25 crores by March 2025. This nearly doubled revenue over six years reflects the company’s expanding market presence and operational scale. The total operating income mirrors this growth, with no other operating income reported during this period.
Operating profit margins, however, have experienced some contraction in recent years. The operating profit margin excluding other income peaked at 20.34% in March 2022 but declined to 13.57% by March 2025. Despite this, the company maintained positive operating profits, with PBDIT standing at ₹128.64 crores in the latest fiscal year.
Profit after tax (PAT) followed a similar pattern, rising from ₹26.71 crores in 2019 to a peak of ₹124.33 crores in 2022 before moderating to ₹58.80 crores in 2025. The PAT margin also declined from 13.92% in 2022 to 6.29% in 2025, indicating increased costs or other pressures impacting net profitability.
Earnings per share (EPS) have fluctuated, with a high of 24.5 in 2022 before settling at 11.59 in 2025, reflecting the profit margin trends and consistent equity capital base of ₹10.15 crores since 2019.
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Cost Structure and Expenditure
The company’s raw material costs have increased in line with sales growth, rising from ₹326.16 crores in 2019 to ₹607.14 crores in 2025. Other expenses also escalated, reaching ₹176.42 crores in the latest fiscal year. Employee costs have steadily increased, reflecting possible workforce expansion or wage inflation, moving from ₹24.11 crores in 2019 to ₹42.75 crores in 2025.
Interest expenses have risen notably, from ₹10.81 crores in 2019 to ₹28.17 crores in 2025, which may indicate increased borrowing or higher interest rates. Depreciation charges also increased, consistent with asset growth and capital expenditure.
Balance Sheet and Asset Growth
Rajratan Global’s total assets have expanded significantly, from ₹378.07 crores in 2020 to ₹959.56 crores in 2025. This growth is supported by a rise in net block assets from ₹228.92 crores in 2020 to ₹532.49 crores in 2025, indicating substantial investment in fixed assets. Capital work in progress also surged, particularly in 2024, suggesting ongoing expansion projects.
Shareholders’ funds have increased from ₹173.48 crores in 2020 to ₹558.98 crores in 2025, reflecting accumulated reserves and retained earnings. The book value per share has improved correspondingly, rising from ₹33.37 in 2020 to ₹109.33 in 2025, signalling enhanced net worth per share.
However, total debt has also increased, reaching ₹237.49 crores in 2025 from ₹136.54 crores in 2020, with both long-term and short-term borrowings rising. This leverage increase may warrant close monitoring for financial risk.
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Cash Flow and Liquidity
Cash flow from operating activities has generally improved, rising from ₹51 crores in 2020 to ₹56 crores in 2025, despite some volatility in working capital changes. Investing activities have consistently been cash outflows, reflecting ongoing capital expenditure and expansion efforts. Financing activities have fluctuated, with a positive inflow of ₹8 crores in 2025 after some years of outflows.
The company’s closing cash and cash equivalents increased to ₹11 crores in 2025 from ₹3 crores in 2024, indicating improved liquidity. Net cash inflows have been modest but positive in recent years, supporting operational and investment needs.
Summary of Historical Performance
Overall, Rajratan Global has exhibited robust growth in sales and asset base over the past six years, accompanied by rising shareholder equity and book value per share. Profitability peaked around 2022 but has moderated since, with margins compressing due to rising costs and interest expenses. The company’s increasing leverage and capital expenditure suggest a focus on expansion, which may offer future growth opportunities but also introduces financial risk considerations. Cash flow trends remain positive, supporting ongoing operations and investments.
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