Revenue and Operating Performance
Over the six-year period ending March 2025, Sapphire Foods’ net sales exhibited a consistent upward trend, rising from ₹1,340.41 crores in fiscal 2020 to ₹2,881.86 crores in fiscal 2025. This represents a compound growth trajectory, with particularly strong gains observed between 2021 and 2023. The total operating income mirrored this growth, reflecting the company’s expanding market presence and sales volume.
Operating profit before depreciation and interest (PBDIT) excluding other income also improved steadily, increasing from ₹185.58 crores in 2020 to ₹476.76 crores in 2025. Operating profit margins remained relatively stable, fluctuating between 12.2% and 18.9% during this period, indicating effective cost management despite rising raw material and employee expenses. Raw material costs increased in line with sales, reaching ₹906.84 crores in 2025, while employee costs rose to ₹386.40 crores, reflecting workforce expansion and inflationary pressures.
Strong fundamentals, solid momentum, fair price – This Large Cap from the NBFC sector checks every box for our Top 1%. This should definitely be on your radar!
- - Complete fundamentals package
- - Technical momentum confirmed
- - Reasonable valuation entry
Profitability and Margins
Profit before tax (PBT) showed a recovery from losses in 2020 and 2021, turning positive from 2022 onwards. The company reported a PBT of ₹23.14 crores in 2025, down from a peak of ₹108.42 crores in 2023. Profit after tax (PAT) followed a similar pattern, with a significant turnaround from negative ₹159.25 crores in 2020 to a positive ₹16.70 crores in 2025. The PAT margin, however, remained modest at 0.58% in 2025, reflecting ongoing challenges in translating revenue growth into net profitability.
Earnings per share (EPS) also reflected this volatility, with a sharp spike in 2023 followed by a decline to ₹0.6 in 2025. This suggests that while the company has made strides in operational efficiency, it continues to face pressures from interest costs and depreciation, which were substantial at ₹111.63 crores and ₹363.92 crores respectively in 2025.
Balance Sheet and Financial Position
Sapphire Foods’ total assets grew from ₹1,380.66 crores in 2020 to ₹2,929.51 crores in 2025, driven by investments in fixed assets and capital work in progress. Net block of assets increased steadily, indicating ongoing capital expenditure to support expansion. Shareholder’s funds more than doubled from ₹479.90 crores in 2021 to ₹1,398.07 crores in 2025, reflecting retained earnings and equity infusion.
Long-term borrowings declined significantly from ₹54 crores in 2020 to ₹5.85 crores in 2025, signalling a reduction in leverage. However, current liabilities increased moderately, with trade payables and short-term borrowings remaining stable. The company’s net current assets were negative in recent years, suggesting working capital management challenges.
Why settle for Sapphire Foods? SwitchER evaluates this Leisure Services Smallcap against peers, other sectors, and market caps to find you superior investment opportunities!
- - Comprehensive evaluation done
- - Superior opportunities identified
- - Smart switching enabled
Cash Flow Trends
Cash flow from operating activities showed a positive trend, rising from ₹213 crores in 2020 to ₹508 crores in 2025. This improvement underscores the company’s enhanced ability to generate cash from core operations. Conversely, cash flow from investing activities remained negative throughout, reflecting sustained capital expenditure and investments. Financing activities saw net outflows in recent years, indicating repayments of debt and reduced reliance on external funding.
Despite these positive cash flows, the company’s closing cash and cash equivalents declined to ₹51 crores in 2025 from ₹91 crores in 2024, highlighting the impact of investing and financing outflows on liquidity.
Outlook and Considerations
Overall, Sapphire Foods has shown robust revenue growth and improved operational profitability over the past six years. The company’s efforts to reduce debt and increase shareholder equity have strengthened its financial position. However, modest net profit margins and fluctuating earnings per share indicate ongoing challenges in cost control and profitability enhancement. Investors should weigh these factors alongside the company’s growth prospects and sector dynamics when considering its stock for their portfolios.
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 →
