Revenue Growth and Operating Income
Over the six-year period ending March 2025, Sattva Sukun’s net sales have exhibited a robust upward trend, rising from ₹0.43 crore in fiscal 2020 to ₹5.26 crore in fiscal 2025. This represents a more than twelvefold increase, underscoring the company’s expanding market presence and sales capabilities. Total operating income mirrored this growth, as other operating income remained negligible throughout the period.
The company’s cost structure reveals that purchases of finished goods have scaled in line with sales, increasing from ₹0.42 crore in 2020 to ₹3.68 crore in 2025. Notably, the (increase)/decrease in stocks has fluctuated, with a significant negative adjustment of ₹2.81 crore in 2025, indicating inventory management dynamics that may have impacted working capital.
Employee costs have remained relatively stable, hovering around ₹0.19 crore in the latest fiscal year, while other expenses have increased moderately to ₹0.95 crore in 2025. The absence of raw material, power, manufacturing, and selling expenses suggests a business model focused on trading or distribution rather than manufacturing.
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Profitability and Margins
Sattva Sukun’s operating profit before depreciation, interest, and tax (PBDIT) excluding other income has surged from a modest ₹0.07 crore in 2020 to ₹3.25 crore in 2025. Including other income, operating profit reached ₹3.65 crore in the latest fiscal year. This improvement is reflected in the operating profit margin, which expanded impressively to 61.79% in 2025 from just 16.28% in 2020, indicating enhanced operational efficiency and cost control.
Profit before tax (PBT) has also followed a positive trajectory, rising from near zero in 2020 to ₹3.19 crore in 2025. After accounting for taxes, the profit after tax (PAT) increased substantially to ₹2.49 crore in 2025, compared to a negligible figure in 2020. The PAT margin improved to 47.34% in 2025, reflecting strong bottom-line growth relative to sales.
Earnings per share (EPS) data shows some variability, influenced by changes in equity capital and face value adjustments. The diluted EPS stood at ₹0.34 in 2025, up from near zero in 2020, signalling improved shareholder returns.
Interest expenses have remained minimal throughout the period, suggesting low leverage and limited borrowing costs. Depreciation charges have increased moderately, consistent with asset additions or capitalisation.
Cash Flow and Capital Structure
Cash flow from operating activities has been volatile, with negative cash flows recorded in fiscal years 2023 and 2024, primarily due to changes in working capital. The company experienced a working capital outflow of ₹2 crore in 2025, which impacted operating cash flow despite strong profitability. Investing activities showed significant outflows in 2023, indicating capital expenditure or investments, while financing activities provided inflows in 2023 and 2024, likely reflecting equity infusion or debt raising.
Equity capital has expanded substantially from ₹3.20 crore in 2021 to ₹19.25 crore in 2025, reflecting capital raises to support growth. Reserves have also increased, reaching ₹4.71 crore in 2025, indicating retained earnings accumulation. The company’s cash and cash equivalents remained at zero in recent years, suggesting utilisation of cash resources or investment in working capital.
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Summary of Historical Performance
In summary, Sattva Sukun has demonstrated a consistent and strong growth pattern in revenue and profitability over the past six years. The company’s operating and net profit margins have expanded significantly, reflecting improved cost management and operational leverage. Despite some challenges in cash flow management, particularly related to working capital, the firm has successfully raised equity capital to fund its expansion.
The absence of raw material and manufacturing costs suggests a business model focused on trading or distribution, which aligns with the cost and expense profile observed. The steady increase in reserves and equity capital supports a solid financial foundation for future growth.
Investors analysing Sattva Sukun’s historical performance will note the impressive margin improvements and profit growth, balanced against the need for careful monitoring of cash flow dynamics. The company’s financial trajectory positions it as a noteworthy player within its sector, with potential for continued expansion.
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