Revenue and Operating Performance Trends
Over the past six years, Vishal Bearings’ net sales have demonstrated considerable volatility. The company’s revenue peaked in the fiscal year ending March 2023 at ₹115.03 crores, before declining to ₹86.64 crores in March 2025. This decline reflects a challenging market environment or operational headwinds in recent periods. Total operating income, which includes other operating income, followed a similar pattern, reaching a high of ₹115.52 crores in 2023 and falling to ₹86.64 crores by 2025.
Raw material costs have consistently represented a significant portion of expenses, ranging from ₹34 crores in earlier years to over ₹52 crores in the latest fiscal year. Employee costs have steadily increased, reaching ₹15.03 crores in 2025, indicating possible workforce expansion or wage inflation. Other expenses also rose, standing at ₹13.95 crores in 2025, which may reflect increased operational costs.
Operating profit before depreciation and interest (PBDIT) excluding other income peaked at ₹19.80 crores in 2023 but declined sharply to ₹7.70 crores in 2025. The operating profit margin similarly contracted from a robust 17.21% in 2023 to 8.89% in 2025, signalling margin pressures.
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Profitability and Earnings Analysis
Profit before tax (PBT) has seen a marked decline, turning negative in the fiscal year ending March 2025 with a loss of ₹2.71 crores, compared to a peak PBT of ₹10.88 crores in 2023. Correspondingly, profit after tax (PAT) also swung from a profit of ₹8.01 crores in 2023 to a loss of ₹2.59 crores in 2025. This reversal is reflected in the earnings per share (EPS), which dropped from ₹7.42 in 2023 to a negative ₹2.4 in 2025.
The PAT margin followed this trend, declining from a healthy 6.96% in 2023 to a negative 2.99% in 2025, indicating the company’s profitability challenges in the most recent fiscal year. Despite these setbacks, the company maintained a stable equity capital base of ₹10.79 crores throughout the period.
Balance Sheet and Financial Position
Vishal Bearings’ total assets increased steadily from ₹59.67 crores in 2021 to ₹106.18 crores in 2025, reflecting investments in fixed assets and working capital. The net block of fixed assets rose from ₹20.94 crores in 2021 to ₹31.21 crores in 2025, supported by capital work in progress, which increased notably to ₹1.68 crores in 2025.
Shareholders’ funds grew from ₹18.78 crores in 2021 to ₹33.15 crores in 2025, supported by reserves that more than tripled over the same period. However, the company’s total debt also increased significantly, reaching ₹55.46 crores in 2025 from ₹31.36 crores in 2021, with both long-term and short-term borrowings rising. This elevated leverage may have contributed to higher interest expenses, which climbed to ₹4.79 crores in 2025.
Current assets remained relatively stable, with inventories rising to ₹47.90 crores in 2025, indicating a build-up of stock. Cash and bank balances improved modestly to ₹2 crores in 2025, while net current assets stood at ₹20.68 crores, suggesting a balanced working capital position.
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Cash Flow and Liquidity Overview
Cash flow from operating activities has fluctuated over the years, with a positive ₹8 crores generated in 2025, down from ₹15 crores in 2021. The company’s cash flow after changes in working capital also remained positive at ₹8 crores in 2025, indicating operational cash generation despite profitability challenges.
Investing activities consistently resulted in cash outflows, reflecting ongoing capital expenditure and investments, with ₹8 crores spent in 2025. Financing activities showed no cash inflow in 2025, contrasting with prior years where the company occasionally raised or repaid funds.
Overall, the net cash inflow was modest at ₹1 crore in 2025, with closing cash and cash equivalents improving to ₹2 crores, suggesting a cautious but stable liquidity position.
Conclusion
Vishal Bearings’ historical performance reveals a company that has experienced significant growth phases, followed by recent profitability pressures and margin contractions. While revenues and operating profits peaked in 2023, the subsequent decline in sales and earnings in 2025 highlights challenges that the company must address. The balance sheet shows increased asset base and leverage, which may impact financial flexibility. However, positive operating cash flows and stable liquidity provide some cushion as the company navigates its current phase.
Investors should closely monitor Vishal Bearings’ ability to restore profitability and manage debt levels effectively to capitalise on its underlying operational strengths.
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