Revenue and Profit Growth
Shrem InvIT's net sales have shown a remarkable upward trend, rising from ₹570.58 crores in March 2022 to ₹2,457.83 crores by March 2025. This nearly fourfold increase over three years underscores the company's expanding operational scale and market presence. Correspondingly, total operating income mirrored this growth, reflecting consistent revenue generation without reliance on other operating income streams, which remained nil throughout the period.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income surged from ₹438.67 crores in March 2022 to ₹1,554.20 crores in March 2025, indicating improved operational efficiency despite rising expenses. The operating profit margin, however, experienced some fluctuation, peaking at 76.88% in 2022 before settling at 63.23% in 2025, suggesting increased cost pressures or strategic investments impacting margins.
Profit after tax (PAT) exhibited a strong upward trajectory, climbing from ₹298.64 crores in 2022 to ₹1,114.93 crores in 2025. This growth was supported by a consistent PAT margin above 45% in recent years, highlighting the company's ability to convert revenue into substantial net earnings. Earnings per share (EPS) also reflected this positive trend, rising from ₹7.48 in 2022 to ₹22.14 in 2025, signalling enhanced shareholder value.
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Cost Structure and Expenditure
The company's total expenditure excluding depreciation rose from ₹131.91 crores in 2022 to ₹903.63 crores in 2025, reflecting the scaling of operations. Notably, manufacturing expenses increased substantially, indicating higher production or operational activities. Employee costs remained minimal relative to total expenses, consistent with the asset-intensive nature of the business. Interest expenses also escalated from ₹130.77 crores in 2022 to ₹642.31 crores in 2025, likely due to increased borrowings to finance growth initiatives.
Despite rising costs, Shrem InvIT maintained a healthy gross profit (PBDT) margin, with gross profit increasing from ₹324.66 crores in 2022 to ₹1,044.30 crores in 2025. Depreciation charges also rose, reflecting asset additions and capital investments over the years.
Balance Sheet and Asset Base
Shrem InvIT's total assets expanded significantly from ₹8,400.06 crores in 2022 to ₹15,338.36 crores in 2025, driven by growth in both non-current and current assets. Non-current assets, including gross block and accumulated depreciation, indicate ongoing capital expenditure and asset utilisation. The net block decreased slightly over the years, suggesting asset depreciation outpacing new additions in some periods.
Shareholder's funds increased steadily, reaching ₹6,520.20 crores in 2025, supported by rising reserves. Long-term borrowings more than doubled from ₹2,939.83 crores in 2022 to ₹7,568.17 crores in 2025, reflecting leveraged expansion. Current liabilities and short-term borrowings also increased but remained proportionate to the company's growing scale.
Cash Flow Dynamics
Cash flow from operating activities showed marked improvement, turning positive at ₹385 crores in 2025 after several years of negative cash flow, signalling enhanced operational cash generation. Investing activities fluctuated, with a negative cash flow of ₹169 crores in 2025 following a positive inflow in 2024, indicative of ongoing asset investments and disposals. Financing activities reflected repayments and borrowings, with a net outflow of ₹209 crores in 2025, contrasting with inflows in prior years.
Overall, the net cash inflow remained modest but positive in 2025, with closing cash and cash equivalents rising to ₹221 crores, providing liquidity support for the company's operations and growth plans.
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Summary and Investor Takeaways
Shrem InvIT's historical performance over the last four years reveals a company on a strong growth path, with substantial increases in revenue, profitability, and asset base. The consistent rise in net sales and operating profits, coupled with expanding shareholder funds, underscores effective management and operational execution. While rising interest costs and expenditure have impacted margins, the company has maintained healthy profitability ratios and improved cash flow from operations.
Investors should note the company's leveraged position, with long-term borrowings increasing significantly to fund expansion. However, the positive cash flow trends and growing reserves provide a cushion for financial stability. Earnings per share growth further highlights the potential for shareholder value creation.
Overall, Shrem InvIT's financial track record suggests a resilient and expanding enterprise, well-positioned to capitalise on future opportunities within its sector.
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