BSERachit Prints LtdHighNeutral
Announced Thu, 28 May · 17:13 IST

OUTCOME OF BOARD MEETING

Revenue Growth 20pctPat NegativeEbitda Margin CompressionNegative Operating CashflowResults View source PDF

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Price reaction · full curve 14 horizons · vs prior close
-9.7%1-day move
₹181.00
prior close
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-9.7-7.7-7.1-2.5+2.4+12.9+7.6
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AI summary

Rachit Prints Ltd reported total revenue of Rs 5,351.79 Lakhs for FY 2025-26, a 28% increase from Rs 4,178.43 Lakhs in the previous year, driven by growth in cloth manufacturing operations. Profit after tax stood at Rs 458.20 Lakhs versus Rs 456.18 Lakhs prior year, showing only marginal growth of ~0.4% despite strong revenue expansion. EPS declined from Rs 13.03 to Rs 10.48 due to increased share count following the company's IPO in September 2025 (13.09 lakh shares issued at Rs 149 per share). Operating cash flow turned negative at Rs -283.17 Lakhs compared to Rs -133.74 Lakhs previously, indicating working capital pressure. The statutory auditor issued an unmodified opinion, and Rs 440 Lakhs of IPO proceeds remain unutilized, deployed in fixed deposits pending capital expenditure plans.

Likely market impact

Strong revenue growth shows healthy business momentum, but the flat profit growth and negative operating cash flow raise concerns about profitability quality. The EPS decline due to IPO-related dilution is mechanical and expected, but investors should monitor the unutilized IPO funds and planned plant machinery expansion.