Revenue and Profitability Trends
Supreme Infra.'s net sales have seen a significant contraction from ₹677 crores in March 2019 to ₹66.17 crores in March 2025. This steep decline reflects a sustained downturn in operational scale. Total operating income mirrored this trend, with no other operating income reported across the period. The company’s expenditure, excluding depreciation, remained substantial relative to income, resulting in negative operating profits for most years. Notably, operating profit before depreciation and interest (PBDIT) excluding other income deteriorated from a positive ₹97.49 crores in 2019 to a negative ₹50.87 crores in 2025.
Despite some other income contributions, operating profits remained negative, with the company reporting an operating loss of ₹33.65 crores in March 2025. Interest expenses have escalated sharply, rising from ₹601.45 crores in 2019 to ₹1,385.32 crores in 2025, exacerbating the company’s financial strain. Consequently, Supreme Infra. has posted consistent net losses, with consolidated net profit after tax plunging from a loss of ₹1,423.21 crores in 2019 to ₹1,426.32 crores in 2025. Earnings per share have correspondingly remained deeply negative, reflecting the ongoing financial distress.
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Balance Sheet and Financial Position
The company’s balance sheet reveals a precarious financial position. Shareholder’s funds have been negative throughout the period, worsening from approximately -₹2,189 crores in 2019 to nearly -₹4,871 crores in 2024. This negative net worth is indicative of accumulated losses and erosion of equity capital. Total liabilities have increased moderately, reaching ₹5,566 crores in 2024, with total debt rising from ₹3,738 crores in 2019 to ₹4,473 crores in 2024. Long-term borrowings have remained elevated, while short-term borrowings surged notably in recent years.
On the asset side, total assets have grown from ₹4,506 crores in 2019 to ₹5,566 crores in 2024, supported by intangible assets under development, which increased steadily to over ₹3,000 crores by 2024. However, net block of fixed assets has declined sharply, reflecting accumulated depreciation and possible asset disposals. Current assets have fluctuated but remained insufficient to cover current liabilities, resulting in negative net current assets consistently over the years.
Cash Flow and Operational Efficiency
Cash flow from operating activities has been negative or marginally positive in recent years, with a notable positive cash flow of ₹1,518 crores in 2020 but subsequent declines to negative ₹14 crores in 2024. Investing activities have varied, with occasional inflows and outflows, while financing activities have generally reflected efforts to manage debt and capital structure. The company’s closing cash and cash equivalents have remained low, fluctuating between ₹2 crores and ₹14 crores, underscoring tight liquidity conditions.
Operating margins have been deeply negative since 2021, with the operating profit margin excluding other income dropping to nearly -77% in 2025. Similarly, the profit after tax margin has deteriorated to over -2,100% in 2025, highlighting the severe losses relative to revenue.
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Summary and Investor Considerations
Supreme Infra.’s historical performance over the past six years has been characterised by a steep decline in sales, persistent operating losses, and mounting interest expenses. The company’s balance sheet reflects significant negative equity and high leverage, with liabilities exceeding assets and ongoing erosion of reserves. Cash flow patterns indicate liquidity challenges, with limited cash reserves and negative operating cash flows in recent years.
For investors, these trends suggest considerable financial risk and operational difficulties. The company’s deteriorating profitability and balance sheet position warrant cautious analysis, especially given the absence of public shareholding and promoter pledging. While the company continues to invest in intangible assets, the overall financial health remains fragile, underscoring the need for careful scrutiny before considering investment.
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