Revenue and Profit Growth Over the Years
Real Touch Fin’s net sales have shown a robust upward trend, expanding from a modest ₹1.82 crore in March 2019 to ₹28.67 crore by March 2025. This represents a more than fifteenfold increase over six years, underscoring the company’s successful expansion and market penetration. Total operating income followed a similar pattern, rising from ₹1.82 crore in 2019 to ₹28.67 crore in 2025, with other operating income contributing marginally in earlier years but absent in the latest fiscal.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income also improved steadily, reaching ₹5.75 crore in March 2025 from ₹1.53 crore in March 2019. However, the operating profit margin has contracted from an exceptionally high 84.07% in 2019 to 20.06% in 2025, reflecting increased expenditure pressures as the company scaled operations.
Profit after tax (PAT) rose from ₹1.11 crore in 2019 to ₹4.61 crore in 2025, with the PAT margin narrowing from around 61% to 16.08% over the same period. Earnings per share (EPS) correspondingly increased from ₹0.87 to ₹3.63, indicating enhanced shareholder value despite margin compression.
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Balance Sheet and Financial Position
The company’s shareholder funds have grown consistently, rising from ₹33.50 crore in 2020 to ₹47.05 crore in 2025. This growth is supported by increasing reserves, which climbed from ₹19.68 crore in 2019 to ₹34.36 crore in 2025, reflecting retained earnings accumulation. Book value per share has also improved steadily, reaching ₹37.07 in 2025 from ₹26.39 in 2020.
However, Real Touch Fin’s liabilities have expanded significantly, with total debt increasing from zero in 2020 to ₹164.51 crore in 2025. This rise in borrowings has led to substantial interest expenses, which surged from nil in 2020 to ₹14.20 crore in 2025, impacting gross profitability. The company’s total liabilities have grown in tandem, reaching ₹228.84 crore in 2025 from ₹33.72 crore in 2020.
On the asset side, non-current assets have increased markedly, driven largely by long-term loans and advances, which rose from ₹27.32 crore in 2020 to ₹225.59 crore in 2025. Current assets remain relatively low, with cash and bank balances fluctuating but standing at ₹2.56 crore in 2025.
Cash Flow and Operational Efficiency
Cash flow from operating activities has been negative in recent years, with outflows of ₹26 crore in 2025 and even larger outflows in prior years. This is primarily due to significant changes in working capital, which have absorbed substantial cash resources. Financing activities have provided positive cash inflows, reflecting the company’s reliance on external funding to support growth and operations. Despite these challenges, net cash outflow remains minimal, indicating careful cash management.
Overall, Real Touch Fin’s historical performance reveals a company in rapid expansion mode, achieving strong revenue and profit growth but facing margin pressures and increased financial leverage. Investors should weigh the impressive top-line growth against the rising debt and interest burden when considering the company’s prospects.
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Conclusion: A Growth Story with Financial Challenges
Real Touch Fin’s journey over the past six years is characterised by impressive growth in sales and profitability, supported by increasing shareholder equity and reserves. The company’s ability to multiply its revenue more than fifteenfold is a testament to its expanding market presence and operational scale. However, this growth has come with a notable increase in debt and interest expenses, which have compressed margins and led to negative operating cash flows.
While the company’s earnings per share and book value per share have improved, signalling enhanced shareholder value, the elevated financial leverage and working capital demands present risks that investors should carefully consider. The balance between growth and financial prudence will be critical for Real Touch Fin’s future performance and market standing.
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