Tarmat Reports Strong Growth Metrics Amid Challenges in Operating Cash Flow

Tarmat, a microcap player in the construction industry, has recently undergone a financial trend adjustment reflecting its strong performance in the quarter ending September 2025. The company's financial metrics indicate significant growth, particularly in net sales, which reached Rs 22.67 crore, marking a 45.60% increase. Additionally, Tarmat reported its highest cash and cash equivalents at Rs 12.75 crore, alongside a robust debtors turnover ratio of 13.86 times, showcasing effective management of receivables.
The company also achieved its highest PBDIT of Rs 1.13 crore and an operating profit to net sales ratio of 4.98%. Profit before tax less other income stood at Rs 0.64 crore, while the profit after tax reached Rs 1.46 crore, resulting in an earnings per share of Rs 0.61.

However, Tarmat faces challenges, particularly with its operating cash flow, which recorded a low of Rs -9.16 crore.

In terms of market performance, Tarmat's stock has shown a decline over various periods compared to the Sensex, with a year-to-date return of -32.94% against the Sensex's 8.61%. Despite this, the company has demonstrated resilience with a notable return of 107.16% over the past decade, indicating potential for recovery and growth in the long term.