Revenue and Profitability Trends
The company’s net sales have shown a generally upward trajectory since fiscal year 2021, rising from ₹134.15 crores to ₹207.60 crores in 2025. This represents a significant recovery from a dip in 2021, with sales surpassing pre-pandemic levels recorded in 2019. Total operating income mirrors this trend, reflecting consistent growth without any other operating income contributions.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income improved markedly, moving from a loss in 2021 to a positive ₹24.64 crores in 2025. Including other income, operating profit rose to ₹25.43 crores in 2025, up from ₹18.59 crores in 2024. This turnaround is underscored by an operating profit margin that expanded to 11.87% in 2025, a substantial improvement from negative margins in 2021 and marginal positive margins in earlier years.
Profit before tax (PBT) and profit after tax (PAT) also reflect this recovery. After enduring losses in 2021 and 2022, the company returned to profitability with a PBT of ₹8.98 crores and PAT of ₹8.96 crores in 2025. Earnings per share (EPS) followed suit, rising to ₹8.00 in 2025 from negative values in prior years, signalling restored shareholder value.
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Cost Structure and Margins
Raw material costs have increased in line with sales growth, reaching ₹84.32 crores in 2025 from ₹57.38 crores in 2021. Employee costs and manufacturing expenses have also risen moderately, reflecting operational scaling. Other expenses remained relatively stable, contributing to a total expenditure (excluding depreciation) of ₹182.96 crores in 2025.
Despite rising costs, the company improved its gross profit margin to 8.03% in 2025, a significant recovery from negative margins in 2021. This margin expansion indicates better cost control and operational efficiency, supporting the improved profitability metrics.
Balance Sheet and Financial Position
Shareholders’ funds have grown steadily, reaching ₹43.98 crores in 2025, up from ₹40.09 crores in 2021, supported by accumulated reserves. The company’s total liabilities stood at ₹172.57 crores in 2025, slightly higher than previous years but consistent with asset growth. Long-term borrowings have remained relatively stable, while short-term borrowings saw a minor decline from ₹32.18 crores in 2021 to ₹29.10 crores in 2025.
On the asset side, net block values have fluctuated but remained robust at ₹42.56 crores in 2025. Inventories and sundry debtors have increased in line with business expansion, with total current assets rising to ₹95.83 crores. Net current assets improved to ₹23.91 crores, indicating a healthier liquidity position compared to earlier years.
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Cash Flow and Operational Efficiency
Cash flow from operating activities has shown consistent strength, rising from ₹7 crores in 2021 to ₹16 crores in 2025. The company has maintained positive cash flow after changes in working capital, reflecting effective management of receivables and inventories. Investing activities have involved steady outflows, primarily for capital expenditure, while financing activities have seen outflows consistent with debt repayments and capital management.
Overall, the net cash position has remained stable, with no significant inflows or outflows disrupting liquidity. This steady cash flow profile supports the company’s operational needs and growth initiatives.
Outlook and Considerations
Simm. Marshall’s historical performance reveals a company that has navigated through challenging periods marked by losses and negative margins, particularly around 2020 and 2021. However, the recent turnaround in profitability, improved margins, and steady revenue growth suggest a positive momentum building. The balance sheet remains solid with manageable debt levels and growing reserves, while cash flows underpin operational stability.
Investors should note the company’s recovery trajectory and enhanced financial health, which may position it favourably for future growth. Nonetheless, monitoring cost trends and maintaining operational efficiencies will be crucial to sustaining this positive performance.
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