How has been the historical performance of Veerhealth Care?

Revenue Growth and Operating Performance

Veerhealth Care’s net sales have shown a consistent upward trend, rising from ₹5.98 crores in March 2019 to ₹16.67 crores in March 2025. This represents a near threefold increase over six years, reflecting the company’s expanding market presence and sales capabilities. The total operating income mirrors this growth, as other operating income remained nil throughout the period, indicating that revenue is primarily driven by core business activities.

Despite this growth, the company’s operating profit margin excluding other income has experienced volatility. After a peak margin of 7.36% in 2019, margins declined sharply to negative territory in 2022, before recovering modestly to 2.76% in 2025. This fluctuation suggests challenges in cost management or pricing pressures during certain periods. The gross profit margin also followed a similar pattern, peaking at 15.05% in 2024 before settling at 8.52% in 2025.

Profitability and Earnings Trends

The company’s profit after tax (PAT) has been inconsistent, with a notable loss recorded in 2022. However, it rebounded to ₹0.39 crores in 2025, though this remains below the peak PAT of ₹1.58 crores achieved in 2023. Correspondingly, earnings per share (EPS) have fluctuated, reaching a high of 1.58 in 2023 before declining to 0.2 in 2025. The PAT margin followed this trend, peaking at 11.91% in 2023 but falling to 2.34% in the latest fiscal year.

Interest expenses have generally been low, though they increased to ₹0.26 crores in 2025 from negligible levels in prior years, reflecting a rise in borrowings. Depreciation expenses have steadily increased, consistent with the company’s growing asset base.

Balance Sheet and Financial Position

Veerhealth Care’s total assets have expanded significantly, from ₹17.98 crores in 2020 to ₹33.77 crores in 2025. This growth is supported by an increase in net block assets, which nearly doubled from ₹9.45 crores in 2020 to ₹19.87 crores in 2025, indicating ongoing capital investment. Shareholder’s funds have also increased, reaching ₹22.22 crores in 2025, up from ₹13.76 crores in 2020, reflecting retained earnings and equity infusion.

The company’s debt profile has changed notably, with total debt rising to ₹4.91 crores in 2025 after a period of zero borrowings in 2023 and 2024. Long-term borrowings constitute the majority of this debt, suggesting a strategic approach to financing capital expenditures. Current liabilities have also increased but remain manageable relative to current assets, which stood at ₹10.88 crores in 2025.

Cash Flow and Liquidity

Cash flow from operating activities has been modest, with zero reported in 2025 following a peak of ₹2 crores in 2024. Investing activities have seen significant outflows in 2025, amounting to ₹8 crores, likely related to asset acquisitions. Financing activities provided a substantial inflow of ₹9 crores in 2025, supporting the company’s investment and working capital needs. The closing cash and cash equivalents stood at ₹1 crore in 2025, indicating a cautious liquidity position.

Summary and Investor Considerations

Overall, Veerhealth Care has demonstrated commendable revenue growth and asset expansion over the past six years. However, profitability has been uneven, with margins and earnings showing volatility. The company’s increasing debt and capital expenditure highlight a phase of investment and growth, but also introduce financial leverage considerations. Investors should weigh the company’s growth potential against its fluctuating profit margins and evolving capital structure when making investment decisions.

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