Ramaraju Surgical Delivers 9.4% Revenue Growth in FY25 but Remains Loss-Making Amid Cost Pressures

30 May 2025

Financial Performance (FY25 vs FY24): Ramara­ju Surgical’s consolidated revenue grew 9.4% YoY to ₹406 Cr in FY25 from ₹371 Cr, driven by Textiles (Increased to ₹350 Cr, +11.9% from FY24), Wind Mills (Increased to ₹9.12 Cr, +4.2% from FY24), and a slight decline in Surgical (₹55.99 Cr, –0.6% from FY24). Despite higher sales, the company remained loss-making: PBT narrowed 13.4% to a ₹44 Cr loss (including a one-time exceptional gain of ₹17 Cr), and PAT loss improved 22.6% to ₹29.21 Cr. Basic EPS was ₹(50.24) in FY25 versus ₹(93.86) in FY24.

Operational Metrics (FY25 vs FY24): The net margin improved to –7.2% (from –10.2%), reflecting a smaller bottom‐line loss relative to revenue. Before exceptionals, the core PBT loss widened to ₹60.42 Cr (from ₹50.27 Cr), as higher raw-material costs (₹220.54 Cr, +8.5%), increased employee expenses (₹62.93 Cr, +12.5%), and sustained finance costs (₹38.58 Cr, +2.7%) pressured margins. Inventories rose 13.9% to ₹131.74 Cr and receivables surged 85.5% to ₹86.04 Cr, pointing to stretched working capital amid rising sales.

Strategic Developments: In FY25, Textiles remained the primary revenue driver but continued to incur losses (₹45.80 Cr PBIT loss vs. ₹36 Cr IN FY24), highlighting a need for cost optimization and yield improvement. The Surgical segment maintained stable PBT (₹18.82 Cr vs. ₹18.31 Cr in FY24) despite flat revenues, while Wind Mills contributed consistent earnings (₹5 Cr PBT). The exceptional ₹16.90 Cr gain from share sales provided temporary relief, but the company must focus on restoring textile profitability, tightening working capital, and reducing leverage to achieve a full turnaround in FY26.