Adret Retail Annual Reports, Balance Sheet and Financials

Adret Retail Limited Consolidated Balance Sheet (Rs. in crores).

Particulars	31-03-2025	31-03-2024
Equity
Equity share capital	20.79	20.19
Reserve & surplus	119.75	100.95
Noncurrent liabilities
Long term provisions	1.55	0.70
Current liabilities
Short term borrowing	59.18	11.27
Trade payables – dues to micro & small enterprises	8.93	9.69
Trade payables – dues of other creditors	51.05	35.38
Other current liabilities	6.73	6.34
Short term Provisions	2.88	1.92
Total equity and liabilities	270.86	186.44
Non-current assets
Plant, property & equipment	2.27	1.49
Intangible assets	0.77	1.13
Capital work in progress	0.33	-
Long term Loans & advances	46.79	30.47
Other non-current assets	21.81	1.64
Current assets
Inventories	15.70	9.54
Trade receivables	37.24	31.83
Cash and cash equivalent	139.23	101.05
Short term loans and advances	3.57	5.69
Other current assets	3.15	3.60
Total	270.86	186.44

Adret Retail Limited Consolidated Profit & Loss Statement (Rs. in crores).

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	341.82	228.45
Other Income	7.42	5.70
Total Income	349.24	234.15
Expenses
Purchase of stock in trade and packing material	103.51	71.65
Changes in inventories of stock in trade	-6.16	-3.59
Employee benefit expense	59.04	46.33
Financial costs	3.19	1.88
Depreciation and amortisation expense	1.62	0.92
Other Expenses	256.90	173.27
Total Expenses	418.10	290.46
Profit/Loss Before Tax	-68.86	-56.31
Profit/ Loss after tax for the period	-68.86	-56.31
Earning per share
Basic & Diluted	-201.77	-166.12

Adret Retail Limited Consolidated Cash Flow Statement (Rs. in crores).

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Net Profit/(loss) Before Tax	-68.86	-56.31
Interest income	-7.35	-5.67
Depreciation and amortisation expense	1.62	0.92
Allowance for doubtful receivables	-0.15	0.20
Share based payment expense	4.58	3.49
Unrealised foreign exchange gain / (loss)	0.04	-
Interest income	3.19	1.88
Working capital adjustments:
Loan and advances	-14.14	-14.84
Other assets	-0.17	0.99
Trade receivables	-5.30	-19.82
Inventories	-6.16	-3.59
Provisions and other liabilities	2.20	2.62
Trade payables	14.91	17.69
Cash generation/used in operations	-75.59	-72.44
Taxes paid	-0.01	-0.38
Net cash inflow/(outflow) from operating activities	-75.60	-72.82
Cash Flow from Investing Activities
Purchase of PPE	-2.37	-1.45
Investment in bank deposits	-28.61	-68.53
Proceeds from maturity of bank deposits	31.09	37.66
Interest income	7.84	3.44
Net Cash from / (used in) Investing Activities	7.95	-28.88
Cash Flow from Financing Activities
Proceeds from issue of shares	83.55	103.03
Proceeds from short term borrowings	47.91	8.07
Repayment of debentures	-	-4.64
Interest expense	-3.19	-1.88
Net Cash from/(used in) Financing Activities	128.27	104.58
Net Increase/decrease in Cash & cash equivalents	60.62	2.88
Cash and cash equivalents at the beginning of the year	3.17	0.29
Cash and cash equivalents at the end of the year	63.79	3.17

Summary of the Cash Flow Statement for the years 2025 and 2024:

Operating activities:
The company continues to generate negative operating cash flows, indicating that its core business operations are not yet producing cash. In FY2025, the net loss before tax widened to ₹-68.86 crore compared to ₹-56.31 crore in FY2024, reflecting ongoing operational challenges. After adjusting for non-cash items such as depreciation, share-based payment expenses, and other accounting adjustments, the cash used in operations remained very high at ₹-75.59 crore, slightly worse than ₹-72.44 crore in the previous year. Working capital movements also contributed to the negative cash flow. Increases in loans and advances, trade receivables, and inventories indicate more funds tied up in business operations, while increases in trade payables partially offset the cash outflow. After taxes, the net cash outflow from operating activities was ₹-75.60 crore, highlighting that the company is still in a cash-consuming growth or expansion phase.

Investing activities:
Cash flow from investing activities improved significantly in FY2025. The company generated a net inflow of ₹7.95 crore, compared with a cash outflow of ₹28.88 crore in FY2024. This change was mainly driven by maturity of bank deposits (₹31.09 crore) and interest income of ₹7.84 crore, which exceeded new investments in deposits and purchases of property, plant, and equipment. Although the company continued to invest ₹28.61 crore in bank deposits and ₹2.37 crore in PPE, the higher proceeds from deposit maturities helped turn investing cash flow positive. This suggests the company is managing its treasury investments and liquidity more actively.

Financing activities:
Financing activities remained the largest source of cash for the company. In FY2025, the company generated ₹128.27 crore from financing, higher than ₹104.58 crore in FY2024. The primary contributor was equity capital raising, with ₹83.55 crore from share issuance, along with ₹47.91 crore from short-term borrowings. Interest payments of ₹3.19 crore slightly reduced the inflow. The continued reliance on equity and borrowings indicates that the company is funding its operations and growth externally rather than through internally generated cash flows.

Overall cash position:
Due to strong financing inflows, the company’s cash and cash equivalents increased sharply by ₹60.62 crore, rising from ₹3.17 crore at the beginning of the year to ₹63.79 crore at the end of FY2025. While the liquidity position has strengthened in the short term, the statement also reveals a structural concern: persistent negative operating cash flows. For long-term sustainability, the company will need to improve operational efficiency and move toward positive cash generation from its core business activities, reducing dependence on external funding

Financial ratios of Adret Retail Limited.

Particulars	31-03-2025	31-03-2024
Current ratio	1.53	2.23
Debt – equity ratio	0.38	0.09
Debt service coverage ratio	-0.84	-3.17
Return on equity	-0.43	-0.48
Inventory turnover ratio	7.91	8.97
Trade receivables ratio	9.82	10.33
Trade payables turnover ratio	6.78	6.70
Net capital turnover ratio	4.62	4.47
Net profit ratio	-0.18	-0.21
Return on capital employed	-0.27	-0.33
Return on investment	7.78%	6.68%

Summary of Financial Ratio of the year 2025 and 2024.

Current ratio:
The current ratio of Adret Retail Limited decreased from 2.23 in 2024 to 1.53 in 2025, indicating a decline in short-term liquidity. Although the ratio is still above 1, which means the company can meet its short-term obligations, the reduction suggests that current liabilities have increased faster than current assets. This may put some pressure on the company’s short-term financial stability.

Debt – equity ratio:
The debt–equity ratio increased significantly from 0.09 in 2024 to 0.38 in 2025, showing that the company has increased its reliance on borrowed funds. While the ratio is still relatively low, the sharp rise indicates higher financial leverage compared to the previous year.

Debt service coverage ratio:
The debt service coverage ratio improved from -3.17 in 2024 to -0.84 in 2025, but it remains negative. A negative ratio indicates that the company is not generating sufficient operating income to cover its debt servicing obligations, mainly due to continuing operating losses.

Return on equity:
Return on equity improved slightly from -0.48 in 2024 to -0.43 in 2025, but it is still negative. This shows that shareholders are not receiving returns on their investments because the company continues to incur losses.

Inventory turnover ratio:
The inventory turnover ratio decreased from 8.97 in 2024 to 7.91 in 2025, indicating that inventory is being sold at a slower rate compared to the previous year. This may suggest weaker sales performance or higher inventory levels.

Trade receivables ratio:
The trade receivables turnover ratio declined slightly from 10.33 in 2024 to 9.82 in 2025. This indicates that the company is taking slightly longer to collect payments from customers, which may affect cash flow management.

Trade payables turnover ratio:
The trade payables turnover ratio increased marginally from 6.70 in 2024 to 6.78 in 2025. This suggests that the company is paying its suppliers slightly faster than before, reflecting stable supplier payment practices.

Net capital turnover ratio:
The net capital turnover ratio improved from 4.47 in 2024 to 4.62 in 2025, indicating that the company is using its capital more efficiently to generate revenue compared to the previous year.

Net profit ratio:
The net profit ratio improved from -0.21 in 2024 to -0.18 in 2025, but it remains negative. This means that despite some improvement, the company is still incurring losses relative to its revenue.

Return on capital employed:
Return on capital employed improved from -0.33 in 2024 to -0.27 in 2025, indicating a slight improvement in the efficiency with which the company is using its capital. However, the negative value shows that the company is still not generating adequate returns from its capital employed.

Return on investment:
The return on investment increased from 6.68% in 2024 to 7.78% in 2025, indicating better returns from the company’s investments compared to the previous year. This improvement suggests more effective utilization of invested funds.