Revenue and Profitability Trends
Over the seven-year period ending March 2025, Rishi Techtex’s net sales have shown a consistent upward trend, rising from ₹83.97 crores in 2019 to ₹125.62 crores in 2025. This represents a compound growth trajectory, with notable acceleration post-2021 when sales surged from ₹81.07 crores to over ₹125 crores by 2025. The absence of other operating income throughout this period indicates that the company’s revenue is primarily derived from its core operations.
Operating profit margins, excluding other income, have fluctuated but generally remained within a moderate range. The margin declined from 9.68% in 2019 to 6.83% in 2025, reflecting increased raw material and other operating costs. Despite this, the company managed to improve its absolute operating profit from ₹8.13 crores in 2019 to ₹8.58 crores in 2025, signalling operational resilience amid cost pressures.
Profit after tax (PAT) has experienced variability, with a low of ₹0.42 crores in 2021 and a recovery to ₹2.30 crores in 2025. The PAT margin similarly dipped to 0.52% in 2021 but rebounded to 1.83% by 2025. Earnings per share (EPS) followed this pattern, rising from ₹0.57 in 2021 to ₹3.11 in 2025, indicating improved shareholder returns in recent years.
Momentum building strong! This Mid Cap from NBFC is on our MomentumNow radar. Other investors are catching on – will you join?
- - Building momentum strength
- - Investor interest growing
- - Limited time advantage
Cost Structure and Expenditure
Raw material costs have consistently formed the largest component of total expenditure, increasing from ₹61.80 crores in 2019 to ₹87.39 crores in 2025. This rise aligns with the growth in sales volume and input price inflation. Employee costs have also increased steadily, reflecting workforce expansion or wage inflation, rising from ₹6.64 crores in 2019 to ₹12.36 crores in 2025. Other expenses have remained relatively stable, hovering around ₹9.5 to ₹13.5 crores annually.
Despite rising costs, the company has maintained a positive operating profit before depreciation and interest, though interest expenses have remained fairly steady around ₹2.6 crores annually. Depreciation charges have increased moderately, consistent with asset additions and ageing.
Balance Sheet and Asset Base
Rishi Techtex’s total assets have expanded from ₹59.87 crores in 2020 to ₹75.04 crores in 2025, driven by growth in both current and non-current assets. Net block, representing fixed assets, has fluctuated but remained around ₹22-25 crores, indicating stable capital investment. Inventories and sundry debtors have increased in line with sales growth, reflecting higher working capital requirements.
Shareholders’ funds have grown steadily from ₹26.19 crores in 2020 to ₹34.14 crores in 2025, supported by accumulated reserves. The company’s total debt peaked around ₹25.75 crores in 2023 before slightly declining to ₹24.02 crores in 2025, suggesting some deleveraging efforts. Short-term borrowings constitute the majority of debt, highlighting reliance on working capital financing.
Cash Flow and Liquidity
Operating cash flow has generally been positive, with ₹5 crores generated in 2025, consistent with profit trends. Investing activities have seen outflows, reflecting capital expenditure, while financing activities have mostly involved debt repayments in recent years. The company’s cash and bank balances remain modest, indicating a lean cash position but no significant liquidity concerns.
Rishi Techtex or something better? Our SwitchER feature analyzes this Microcap Packaging stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Summary and Outlook
In summary, Rishi Techtex has exhibited a consistent growth pattern in revenue and shareholder equity over the past several years, despite some margin compression and fluctuating profitability. The company’s ability to increase sales while managing costs and maintaining positive cash flows reflects operational stability. However, the relatively modest profit margins and steady debt levels suggest cautious monitoring of cost control and leverage is warranted.
Investors seeking exposure to this mid-sized packaging firm should weigh its steady expansion against the challenges of margin pressures and working capital demands. The company’s improving earnings per share and book value per share indicate value creation, but the competitive landscape and raw material cost volatility remain key factors to watch.
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 →
