Revenue and Profitability Trends
In the fiscal year ending March 2025, Vani Commercials reported net sales of ₹3.39 crores, marking a slight increase from ₹3.15 crores in the previous year. This growth reflects a positive momentum following a nil revenue base in March 2023, indicating the company’s re-entry or expansion in its operating activities. The total operating income mirrored this trend, standing at ₹3.39 crores in 2025 compared to ₹3.15 crores in 2024.
Operating expenses excluding depreciation rose to ₹2.15 crores in 2025 from ₹1.41 crores in 2024, driven primarily by an increase in other expenses which surged from ₹0.56 crores to ₹1.69 crores. Employee costs, however, declined from ₹0.85 crores to ₹0.46 crores, suggesting operational adjustments or efficiency measures.
Despite higher expenditure, the company maintained a healthy operating profit (PBDIT) of ₹1.26 crores in 2025, though this was down from ₹1.76 crores in 2024. The operating profit margin contracted from 55.6% to 36.6%, reflecting the impact of rising costs on profitability. Interest expenses decreased significantly from ₹1.15 crores to ₹0.66 crores, aiding the company in sustaining a gross profit before depreciation and tax of ₹0.60 crores, nearly stable compared to the previous year.
Profit before tax declined from ₹0.61 crores in 2024 to ₹0.48 crores in 2025, while profit after tax showed a marginal increase from ₹0.24 crores to ₹0.26 crores. The PAT margin remained steady at 7.67% across both years, indicating consistent net profitability relative to sales. Earnings per share improved slightly to ₹0.22 in 2025 from ₹0.20 in 2024, reflecting the incremental profit gains.
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Balance Sheet and Financial Position
Vani Commercials’ balance sheet reveals a stable shareholder’s fund base, increasing slightly from ₹13.40 crores in 2024 to ₹13.76 crores in 2025. The company’s equity capital remained unchanged at ₹11.74 crores, while reserves grew from ₹1.66 crores to ₹2.02 crores, indicating retained earnings accumulation.
Total liabilities decreased from ₹55.26 crores in 2024 to ₹45.89 crores in 2025, primarily due to a reduction in short-term borrowings from ₹40.22 crores to ₹30.60 crores. This deleveraging effort suggests a focus on improving financial leverage and reducing debt burden. Non-current liabilities also declined, contributing to a healthier liability profile.
On the asset side, total assets contracted from ₹55.26 crores to ₹45.89 crores, reflecting the lower liabilities and possibly asset optimisation. Non-current investments increased from ₹3.24 crores to ₹4.85 crores, while long-term loans and advances decreased from ₹51.31 crores to ₹40.35 crores, indicating a shift in asset composition. Current assets rose from ₹3.71 crores to ₹5.08 crores, supported by an increase in current investments.
The company’s book value per share improved marginally to ₹11.72 in 2025 from ₹11.41 in 2024, underscoring incremental value creation for shareholders.
Cash Flow and Operational Efficiency
Cash flow from operating activities showed a marked improvement, turning positive at ₹11 crores in 2025 compared to a negative ₹31 crores in 2024. This reversal highlights enhanced working capital management and operational cash generation. Investing activities reflected a modest outflow of ₹1 crore in 2025, while financing activities saw an outflow of ₹9 crores, contrasting with a ₹30 crore inflow in the prior year. The net cash position remained stable, with no significant change in cash and cash equivalents.
Overall, Vani Commercials has demonstrated a cautious but positive financial progression, balancing growth in revenue and profitability with prudent debt reduction and improved cash flow management. The company’s consistent PAT margin and rising reserves suggest a foundation for sustainable operations, although the contraction in operating margins signals the need for continued cost control.
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Conclusion
In summary, Vani Commercials’ historical performance over the last two fiscal years reflects a company in recovery and gradual expansion. The growth in net sales and net profit, alongside improved shareholder equity and reduced borrowings, points to strengthening fundamentals. However, the decline in operating profit margin and the relatively modest scale of operations suggest that the company remains in a phase of cautious growth, requiring ongoing focus on operational efficiencies and cost management to enhance profitability further.
Investors analysing Vani Commercials should consider these trends in the context of the broader NBFC sector dynamics and the company’s strategic initiatives to sustain growth and improve margins.
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