Panchvat Bharat revenue nearly doubled as FY25 profit rose

Panchvat Bharat Limited reported restated revenue from operations of Rs 48.09 crore in FY25, 96.7% above Rs 24.45 crore in FY23, while restated profit after tax increased to Rs 2.83 crore from Rs 33.77 lakh. The three-year presentation combines the company’s results with those of three predecessor proprietorship firms.

How did Panchvat Bharat revenue nearly double?

Panchvat Bharat’s revenue nearly doubled because restated revenue from operations rose from Rs 24.45 crore in FY23 to Rs 39.31 crore in FY24 and Rs 48.09 crore in FY25. The Rs 23.64 crore increase over two years came from the restated statement of profit and loss for the financial years ended March 31, and represents 96.7% growth from the FY23 base.

The annual pace slowed after FY24. Revenue increased 60.8% from FY23 to FY24, before rising 22.3% in FY25. FY25 total income was Rs 48.99 crore, Rs 90 lakh above revenue from operations of Rs 48.09 crore, showing that the statement separately reports operating revenue and other income.

Panchvat Bharat recognises product-sale revenue when the risks and rewards of ownership pass to customers, according to its stated accounting policy. Sales are recorded excluding Goods and Services Tax, or GST, an indirect tax; therefore, the Rs 48.09 crore FY25 figure is reported operating revenue rather than sales including GST.

What do the restated figures show across three years?

Panchvat Bharat’s restated profit after tax rose more than eightfold, from Rs 33.77 lakh in FY23 to Rs 2.02 crore in FY24 and Rs 2.83 crore in FY25. The FY25 result was Rs 80.70 lakh above FY24, following a Rs 1.68 crore increase between FY23 and FY24.

Profit before tax increased from Rs 46.96 lakh in FY23 to Rs 3.72 crore in FY25, a rise of Rs 3.25 crore. Based on reported revenue from operations, profit after tax represented about 1.4% in FY23, 5.1% in FY24 and 5.9% in FY25. Those calculations indicate that reported profit rose faster than revenue, although the history is presented on a restated combined-business basis.

What changed in Panchvat Bharat’s cost base?

Panchvat Bharat’s expenses rose from Rs 23.98 crore in FY23 to Rs 45.27 crore in FY25, an increase of Rs 21.29 crore that was smaller than the Rs 23.64 crore revenue increase. Total expenses were Rs 35.68 crore in FY24, so the FY25 increase was Rs 9.59 crore compared with Rs 11.70 crore in the preceding year.

Purchases of stock-in-trade were the largest reported expense, increasing from Rs 21.07 crore in FY23 to Rs 29.93 crore in FY24 and Rs 34.90 crore in FY25. Cost of material consumed rose from Rs 1.81 crore in FY23 to Rs 10.45 crore in FY25. Together, the two lines amounted to Rs 45.35 crore in FY25 before the effect of the inventory-change line.

The change in inventories of finished goods, work-in-progress and stock-in-trade was negative Rs 1.97 crore in FY25 and negative Rs 2.97 crore in FY24, compared with a positive Rs 2.07 crore expense in FY23. Employee-benefit expense increased from Rs 9.85 lakh to Rs 59.92 lakh across FY23 to FY25, while finance costs rose from Rs 36.91 lakh to Rs 87.91 lakh. The reported earnings outcome therefore depends on purchases, material consumption, inventory movements, staffing costs and borrowing costs as well as revenue.

Are Panchvat Bharat’s three reported years directly comparable?

Panchvat Bharat’s three-year restated record tracks the combined business, rather than three years of standalone corporate financial statements. Panchvat Bharat was incorporated on March 6, 2024, while the FY23 and FY24 figures were compiled from audited financial statements of S.R. Fabrics, S.G. Traders and Neel Madhav Textiles, each identified in the auditor’s report as a proprietorship firm.

For FY25, the restated information uses Panchvat Bharat’s financial statements for the period from March 6, 2024 to March 31, 2025. The auditor said the restatement included adjustments and regrouping to apply accounting treatments appropriate to a company, including depreciation under the Companies Act, 2013, time-proportionate expense recognition, deferred-tax recognition and company-applicable income-tax rates.

The auditor reported no qualifications in the FY23 and FY24 audit reports requiring adjustment in the restated statements. The board approved the restated financial information on June 25, 2025 for inclusion in offer documents under the Companies Act and the Securities and Exchange Board of India’s Issue of Capital and Disclosure Requirements Regulations, or ICDR Regulations.

What does the FY25 balance sheet show about operating scale?

Panchvat Bharat reported total assets of Rs 27.16 crore at March 31, 2025, compared with Rs 16.88 crore at March 31, 2024 and Rs 12.45 crore at March 31, 2023. Inventories of Rs 10.69 crore were the largest reported asset category at FY25-end, exceeding trade receivables of Rs 5.84 crore and cash and bank balances of Rs 3.45 crore.

Panchvat Bharat’s current operating funding included Rs 9.27 crore of trade payables to creditors other than micro and small enterprises and Rs 4.87 crore of short-term borrowings at March 31, 2025. Long-term borrowings were Rs 2.86 crore, taking reported total borrowings to Rs 7.74 crore. Inventory, receivables and payables are therefore material to the conversion of FY25 revenue into cash.

Panchvat Bharat classifies its operating cycle as 12 months, defined as the period between acquiring assets for processing and their realisation in cash or cash equivalents. Continued revenue and profit performance would depend on inventory turnover, collections, supplier settlements and borrowing requirements being managed within that stated cycle.

Conclusion

Panchvat Bharat’s restated figures show that revenue rose by Rs 23.64 crore between FY23 and FY25 while profit after tax rose by Rs 2.49 crore. The difference between revenue growth and expense growth, together with negative inventory-change entries in FY24 and FY25, contributed to the increase in reported profit, but the figures reflect a combined history of the company and predecessor firms.

The next disclosed matters to watch are whether Panchvat Bharat manages its March 31, 2025 inventory of Rs 10.69 crore, receivables of Rs 5.84 crore and total borrowings of Rs 7.74 crore while maintaining FY25 profitability. Panchvat Bharat has no formal dividend policy and has not declared or paid a dividend on equity shares since incorporation; any dividend would depend on board recommendation, shareholder approval, financial condition, capital requirements and financing arrangements.