Revenue and Profitability Trends
Over the seven-year period ending March 2025, Saptarishi Agro’s net sales exhibited notable volatility before surging sharply in the latest year. From a relatively stable range around ₹35-44 crores between 2019 and 2024, net sales nearly doubled to ₹79.43 crores in March 2025. This substantial increase reflects either expanded operations or improved market demand. Despite this growth, the company’s operating profit margin (excluding other income) has remained modest, peaking at 6.31% in March 2024 before moderating to 3.71% in March 2025. The profit after tax margin followed a similar pattern, improving from negative territory in 2019 and 2020 to 2.69% in the latest fiscal year.
Profit after tax (PAT) itself turned positive after losses in 2019 and 2020, rising steadily from ₹0.39 crores in 2021 to ₹2.14 crores in 2025. Earnings per share (EPS) mirrored this recovery, moving from negative values to ₹0.63 in March 2025, indicating enhanced shareholder returns. The company’s operating profit (PBDIT) also improved significantly, reaching ₹2.95 crores in the latest year compared to just ₹0.06 crores in 2020.
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Balance Sheet and Financial Position
Saptarishi Agro’s balance sheet reveals a strengthening equity base and rising liabilities over the years. Shareholder’s funds increased from ₹3.76 crores in 2020 to ₹9.94 crores in 2025, reflecting retained earnings and capital infusion. However, reserves remain negative, though the deficit has narrowed from approximately ₹-30.28 crores in 2020 to ₹-24.10 crores in 2025, signalling ongoing challenges in accumulated losses.
The company’s total liabilities surged from ₹14.01 crores in 2020 to ₹69.21 crores in 2025, driven largely by a sharp rise in current liabilities, particularly trade payables and short-term borrowings. Trade payables escalated from ₹7.78 crores in 2020 to ₹41.65 crores in 2025, while short-term borrowings increased from negligible levels to ₹10.04 crores. Long-term borrowings also rose, reaching ₹3.87 crores in 2025, indicating increased leverage to support growth or operations.
On the asset side, total assets expanded significantly from ₹14.01 crores in 2020 to ₹69.21 crores in 2025. This growth was supported by increases in current assets, especially sundry debtors and inventories, which rose to ₹47.06 crores and ₹6.83 crores respectively in 2025. Fixed assets also grew, with net block increasing to ₹4.41 crores, alongside capital work in progress of ₹4.19 crores, suggesting ongoing investments in capacity or infrastructure.
Cash Flow and Operational Efficiency
Cash flow from operating activities showed improvement in the latest fiscal year, generating ₹1 crore after negative cash flows in previous years. This positive shift followed adjustments and changes in working capital, which had previously constrained liquidity. Investing activities reflected a net outflow of ₹7 crores in 2025, likely linked to capital expenditure, while financing activities provided ₹6 crores, indicating fresh borrowings or capital injections to fund expansion.
Despite the growth in sales and assets, operating profit margins remain relatively thin, and the company continues to manage a negative reserve position. The increase in borrowings and trade payables suggests reliance on external financing and supplier credit, which may impact financial flexibility. Nonetheless, the upward trend in profitability and equity base points to gradual operational improvement and potential for further growth.
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Summary and Outlook
In summary, Saptarishi Agro’s historical performance reflects a company in transition, with recent years showing marked improvement in revenue and profitability after a period of stagnation and losses. The sharp increase in net sales in the latest fiscal year is a positive development, although margins remain modest and the balance sheet shows increased leverage and negative reserves. The company’s ability to convert sales growth into sustainable profits and manage its working capital efficiently will be critical going forward.
Investors should monitor the company’s operational efficiency, debt levels, and cash flow generation closely, as these factors will influence its financial health and growth prospects. While the turnaround signs are encouraging, cautious optimism is warranted given the historical volatility and ongoing challenges in profitability and reserves.
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