Revenue and Operating Performance Trends
Examining the net sales figures, Sanghi Industrie’s revenue peaked at over ₹1,120 crores in the fiscal year ending March 2022, following a recovery from a dip in the previous years. However, the subsequent year saw a decline to approximately ₹969 crores by March 2025. This downward trend in sales was accompanied by a similar pattern in total operating income, which also peaked in 2022 before contracting in the following years.
Operating profit margins have mirrored this volatility. The company posted robust operating margins exceeding 25% in 2021, but these margins sharply deteriorated thereafter, turning negative in 2023 and 2024 before a modest recovery in 2025. The gross profit margin also followed a similar trajectory, declining from a positive margin in earlier years to significant negative margins in the most recent fiscal periods.
Operating profit (PBDIT) excluding other income swung from a healthy ₹240 crores in 2021 to negative territory in 2023 and 2024, reflecting operational challenges. Although other income provided some relief, the overall operating profit remained under pressure, culminating in a loss in the latest fiscal year.
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Profitability and Earnings
Profit before tax (PBT) and profit after tax (PAT) figures reveal a stark contrast between the earlier and recent years. From modest profits in the range of ₹50 to ₹110 crores between 2019 and 2021, the company swung to substantial losses exceeding ₹450 crores in 2024 and 2025. This deterioration is reflected in the earnings per share (EPS), which turned negative after 2022, reaching a loss per share of over ₹19 in the latest fiscal year.
The PAT margin, which was positive and improving up to 2021, plunged into deep negative territory in the last three years, signalling significant profitability challenges. These losses have eroded shareholder value, as seen in the decline of reserves and book value per share, which dropped from over ₹70 in 2022 to under ₹24 by 2025.
Balance Sheet and Debt Profile
Sanghi Industrie’s balance sheet reveals a marked increase in long-term borrowings, rising from around ₹880 crores in 2020 to nearly ₹2,485 crores by 2025. This surge in debt has contributed to elevated interest expenses, which more than tripled from ₹57 crores in 2019 to over ₹227 crores in 2025, further pressuring profitability.
Shareholders’ funds have contracted significantly, reflecting the accumulated losses and reduced reserves. Total liabilities have remained relatively stable around ₹3,700 crores in recent years, but the composition has shifted towards higher unsecured loans. The company’s net block of fixed assets has increased steadily, indicating ongoing capital investments, although capital work in progress has decreased sharply from earlier peaks.
Cash Flow and Liquidity
Cash flow from operating activities has mirrored the profitability trends, with positive inflows in the early years turning into negative cash flows in the last two fiscal years. The company recorded operating cash outflows exceeding ₹240 crores in 2024 and 2025, signalling liquidity pressures. Investing activities have also been a net outflow in recent years, reflecting continued capital expenditure.
Financing activities have provided some support, with inflows of ₹225 crores in 2025, likely linked to increased borrowings. Despite these efforts, the net cash position has declined sharply, with closing cash and cash equivalents falling from ₹173 crores in 2024 to just ₹21 crores in 2025.
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Summary of Historical Performance
Overall, Sanghi Industrie’s historical performance depicts a company that enjoyed steady revenue and profitability growth until 2021, followed by a period of significant financial stress. The sharp increase in debt and interest costs, combined with declining sales and operating margins, has led to substantial losses and erosion of shareholder equity in recent years.
While the company continues to invest in fixed assets, the negative cash flows and deteriorating profitability raise concerns about its near-term financial health. Investors should carefully monitor the company’s efforts to stabilise operations, manage debt, and restore profitability before considering new commitments.
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