How has been the historical performance of Soni Medicare?

Revenue and Operating Income Growth

Over the past several years, Soni Medicare’s net sales have shown consistent growth, rising from ₹13.33 crores in March 2018 to ₹29.84 crores by March 2025. This represents more than a twofold increase in top-line revenue, reflecting the company’s expanding market presence and operational scale. Other operating income, which was negligible in earlier years, has also contributed modestly in recent periods, reaching ₹1.35 crores in the latest fiscal year. Consequently, total operating income climbed from ₹13.33 crores in 2018 to ₹31.19 crores in 2025, underscoring a positive revenue momentum.

Cost Structure and Expense Trends

The company’s expenditure profile reveals rising raw material costs, which increased from ₹1.73 crores in 2018 to ₹8.49 crores in 2025, in line with the growth in production and sales volume. Employee costs have also escalated steadily, reflecting workforce expansion and wage inflation, reaching ₹7.44 crores in the latest year. Other expenses have more than tripled over the period, from ₹3.46 crores in 2018 to ₹13.99 crores in 2025, indicating increased operational overheads. Notably, manufacturing expenses were significant in earlier years but appear to have been phased out or reclassified in recent reports. Overall, total expenditure excluding depreciation rose from ₹12.21 crores in 2018 to ₹29.92 crores in 2025, closely tracking revenue growth but exerting pressure on margins.

Profitability Challenges

Despite revenue growth, Soni Medicare has struggled to maintain consistent profitability. Operating profit before depreciation and interest (PBDIT) excluding other income fluctuated significantly, with a negative margin in March 2024 but a recovery to ₹1.27 crores in March 2025. The operating profit margin excluding other income was 4.26% in 2025, a marked improvement from a negative margin the previous year, yet still below the 8.47% recorded in 2018. Gross profit margins have remained thin, under 1% in recent years, reflecting tight cost controls and pricing pressures.

Interest expenses have increased alongside rising borrowings, reaching ₹0.99 crores in 2025, which has further eroded profitability. The company has reported losses before tax consistently since 2018, with the latest fiscal year showing a loss of ₹0.22 crores. Profit after tax has mirrored this trend, with a loss of ₹0.19 crores in 2025, although this represents an improvement over the larger losses recorded in prior years. Earnings per share have remained negative since 2019, indicating ongoing challenges in generating shareholder returns.

Balance Sheet and Financial Position

Soni Medicare’s balance sheet reveals a growing reliance on debt financing. Total borrowings increased from ₹5.08 crores in 2020 to ₹9.81 crores in 2025, with long-term borrowings constituting the majority. Shareholders’ funds have declined from ₹5.15 crores in 2020 to ₹1.30 crores in 2025, reflecting accumulated losses and negative reserves. The book value per share has correspondingly decreased from ₹12.07 in 2020 to ₹3.04 in 2025, signalling erosion of net asset value.

On the asset side, net block values have remained relatively stable around ₹6.3 crores, while current assets have increased to ₹13.78 crores in 2025, supported by rising sundry debtors and cash balances. Net current assets have improved to ₹3.39 crores, indicating better short-term liquidity compared to previous years. Contingent liabilities remain minimal, suggesting limited off-balance sheet risks.

Cash Flow and Operational Efficiency

Cash flow from operating activities has been modest, with a positive inflow of ₹1 crore in the latest fiscal year after a period of negative cash flows in 2022. Changes in working capital have varied, reflecting fluctuations in receivables and payables management. There has been no significant cash flow from investing or financing activities in recent years, indicating limited capital expenditure or equity raising. The closing cash and cash equivalents have increased to ₹2 crores in 2025, providing some buffer for operational needs.

Outlook and Considerations

While Soni Medicare has achieved commendable revenue growth over the past seven years, its profitability remains under pressure due to rising costs and interest expenses. The company’s increasing debt levels and declining net worth warrant cautious scrutiny by investors. However, improvements in operating margins and cash flow in the latest year suggest potential for stabilisation. Prospective investors should weigh these factors carefully against sector dynamics and peer performance before making investment decisions.

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