Revenue Growth and Operating Performance
Over the past six years, Shalby's net sales have shown a consistent upward trend, rising from ₹462.26 crores in March 2019 to ₹1,086.96 crores in March 2025. This represents more than a twofold increase, underscoring the company's expanding market presence and operational scale. The total operating income mirrors this growth, with no other operating income reported during this period.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income also improved substantially, climbing from ₹82.38 crores in March 2019 to ₹132.61 crores in March 2025. Including other income, operating profit reached ₹160.21 crores in the latest fiscal year, although this was lower than the peak of ₹196.47 crores recorded in March 2024. Operating profit margins have fluctuated, peaking at just over 20% in March 2021 before moderating to 12.2% in March 2025, reflecting increased expenditure pressures.
Fresh entry alert! This Small Cap from Electronics & Appliances sector is already turning heads in our Top 1% club. Get ahead of the market now!
- - New Top 1% entry
- - Market attention building
- - Early positioning opportunity
Profitability and Margins
Despite the revenue growth, Shalby's consolidated net profit has experienced volatility. From ₹31.66 crores in March 2019, net profit rose steadily to ₹84.08 crores in March 2024 before plunging sharply to ₹6.22 crores in March 2025. This steep decline is primarily attributable to a significant increase in interest expenses, which rose from ₹8.08 crores in 2019 to ₹38.71 crores in 2025, and higher depreciation charges.
The profit after tax (PAT) margin similarly contracted from a healthy 8.94% in March 2024 to a mere 0.18% in March 2025. Earnings per share (EPS) followed this trend, dropping from ₹7.83 in 2024 to ₹0.58 in 2025, signalling a challenging year for shareholders. The company’s tax outgo also increased notably, further impacting net profitability.
Balance Sheet and Financial Position
Shalby’s balance sheet reflects growth in total assets from ₹966.63 crores in March 2020 to ₹1,703.65 crores in March 2025, driven by investments in fixed assets and working capital. Net block of assets increased to ₹915.24 crores, supported by capital work in progress and intangible assets under development, indicating ongoing expansion and capacity enhancement.
Shareholders’ funds have grown steadily, reaching ₹992.19 crores in March 2025, although slightly down from the previous year’s ₹1,000.37 crores. The company’s total debt has risen significantly, from ₹44.03 crores in March 2021 to ₹426.72 crores in March 2025, reflecting increased borrowings to fund growth initiatives. This rise in leverage corresponds with the surge in interest costs observed in the profit and loss account.
Cash Flow Analysis
Cash flow from operating activities has been inconsistent, with a negative outflow of ₹4 crores in March 2025 contrasting with positive inflows in prior years, such as ₹67 crores in March 2023. Investing activities have generally involved cash outflows, consistent with capital expenditure and expansion efforts. Financing activities showed a positive inflow of ₹47 crores in the latest year, indicating fresh borrowings or capital infusion to support operations.
Overall, the net cash inflow was modest at ₹7 crores in March 2025, with closing cash and bank balances improving to ₹34 crores. The company’s working capital position remains positive but has tightened compared to previous years.
Considering Shalby? Wait! SwitchER has found potentially better options in Hospital and beyond. Compare this Smallcap with top-rated alternatives now!
- - Better options discovered
- - Hospital + beyond scope
- - Top-rated alternatives ready
Summary of Historical Performance
In summary, Shalby has exhibited robust top-line growth over the last six years, more than doubling its net sales. Operating profitability has generally improved, although margins have contracted recently due to rising costs. The sharp decline in net profit in the latest fiscal year highlights the impact of increased interest expenses and depreciation, alongside higher tax payments.
The company’s balance sheet shows significant asset growth and increased leverage, reflecting an aggressive expansion strategy. Cash flow trends suggest some pressure on operating liquidity, with financing activities playing a key role in maintaining cash reserves.
Investors should weigh Shalby’s strong revenue growth and asset base against the recent profitability challenges and rising debt levels when considering its historical performance and future prospects.
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 →
