How has been the historical performance of Sunil Agro Foods?

Revenue and Operating Income Growth

Over the seven-year period ending March 2025, Sunil Agro Foods' net sales increased from ₹132.07 crores in March 2019 to ₹228.90 crores in March 2025. This represents a compound growth trend, with notable jumps particularly between 2021 and 2022, where sales rose from ₹154.65 crores to ₹175.92 crores, and continued growth thereafter. Other operating income has fluctuated but remained a minor component relative to net sales, contributing marginally to total operating income.

Total operating income followed a similar trajectory, rising from ₹134.94 crores in 2019 to ₹230.31 crores in 2025. This steady increase underscores the company’s ability to expand its revenue base despite a competitive agricultural products market.

Profitability Trends and Margins

Operating profit before depreciation, interest, and tax (PBDIT) excluding other income showed a peak in March 2024 at ₹5.78 crores but declined sharply to ₹2.81 crores in March 2025. Including other income, operating profit also fell from ₹6.25 crores in 2024 to ₹3.47 crores in 2025. This decline is reflected in the operating profit margin, which dropped from 2.54% in 2024 to 1.23% in 2025, signalling margin pressure.

Interest expenses have remained relatively stable, hovering around ₹3 crores annually, which has weighed on gross profit before depreciation and tax. Depreciation costs have been consistent, around ₹1.6 to ₹1.7 crores per year.

Most notably, the company reported a profit before tax of ₹1.15 crores in 2024 but swung to a loss of ₹1.44 crores in 2025. Correspondingly, profit after tax turned negative at ₹-1.09 crores in 2025, compared to modest profits in previous years. This resulted in a negative PAT margin of -0.48% in the latest fiscal year, reversing the positive margins seen earlier.

Balance Sheet and Financial Position

Sunil Agro Foods’ shareholder funds have grown steadily from ₹14.04 crores in 2021 to ₹15.90 crores in 2025, supported by reserves increasing from ₹11.04 crores to ₹12.90 crores over the same period. The company’s total liabilities have also risen, reaching ₹88.75 crores in 2025 from ₹58.64 crores in 2021, driven largely by increases in current liabilities and borrowings.

Long-term borrowings have decreased significantly from ₹12.14 crores in 2022 to ₹1.34 crores in 2025, indicating some deleveraging. However, short-term borrowings have increased sharply, reaching ₹30.96 crores in 2025 from ₹13.07 crores in 2021, which may suggest a shift in the company’s debt profile towards more immediate obligations.

On the asset side, total assets have expanded from ₹58.64 crores in 2021 to ₹88.75 crores in 2025. Inventories have grown substantially, from ₹22.50 crores in 2021 to ₹49.85 crores in 2025, reflecting either increased production or stockpiling. Sundry debtors have also increased, indicating higher receivables. Net block of fixed assets has remained relatively stable around ₹16-17 crores.

Cash Flow Overview

Cash flow from operating activities has fluctuated over the years, with a positive ₹9 crores in 2025, up from ₹4 crores in 2024. This improvement follows a negative cash flow in 2022, indicating some recovery in operational cash generation. Investing activities have consistently shown outflows, reflecting ongoing capital expenditure or investments. Financing activities have mostly been outflows in recent years, with ₹-9 crores in 2025, suggesting debt repayments or other financing reductions.

Summary of Historical Performance

Sunil Agro Foods has shown consistent revenue growth over the past seven years, with net sales rising by over 70% from 2019 to 2025. Despite this, profitability has been under pressure, culminating in a loss in the most recent fiscal year after several years of modest profits. Operating margins have contracted, and interest costs remain a significant burden on earnings.

The company’s balance sheet reflects increased leverage, particularly in short-term borrowings, and a growing asset base driven by inventories and receivables. Cash flow from operations has improved recently, which may provide some relief for liquidity concerns. However, the shift in debt profile and declining profitability suggest that investors should carefully monitor the company’s financial health and operational efficiency going forward.

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 →