Garuda Aerospace Annual Reports, Balance Sheet and Financials

Garuda Aerospace Private Limited Standalone Balance Sheet (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Equity
Share Capital	0.11	0.11
Reserves & Surplus	167.91	100.51
Share application money pending allotment	-	4.08
Non-Current Liabilities
Long Term Borrowings	0.47	4.28
Other long term liabilities	1.51	1.52
Long Term Provisions	0.29	0.15
Current Liabilities
Short Term borrowings	6.23	15.39
Trade Payables
Total outstanding dues of Micro & Small enterprises	13.65	-
Total Outstanding dues of creditors other than above	12.16	15.70
Other current liabilities	3.04	6.10
Short term Provisions	5.87	0.79
Total Equity & Liabilities	211.29	148.66
Non-Current Assets
Property, plant and equipment	15.17	13.32
Intangible assets	0.17	0.43
Intangible assets under development	3.52	-
Non-current investments	0.50	-
Deferred tax asset	0.23	0.10
Other non-current assets	12.34	5.39
Current Assets
Inventories	24.58	26.15
Trade Receivables	114.83	73.81
Cash & cash equivalents	4.58	15.22
Short Term Loans & Advances	35.33	14.20
Total Assets	211.29	148.66

Garuda Aerospace Private Limited Standalone Profit & Loss Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	117.67	109.94
Other Income	7.12	0.81
Total Income	124.80	110.76
Expenses
Cost of material consumed	72.46	50.15
Changes in inventory of WIP and finished goods	-16.59	-1.23
Employee Benefit Expenses	9.55	10.58
Finance Costs	1.15	1.92
Depreciation & amortization expense	3.11	1.98
Other Expenses	31.17	26.02
Total Expenses	100.87	89.44
Profit Before Tax	23.92	21.31
Current Tax	6.70	5.50
Tax expense of earlier years	0.09	-
Deferred Tax	-0.13	-0.01
Profit/(Loss) for the period	17.26	15.82
Earning per share
Basic	1,593.90	1,464.07
Diluted	1,485.47	1,383.48

Garuda Aerospace Private Limited Standalone Cash Flow Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Net profit before tax and extraordinary items	23.92	21.31
Adjustments for
Depreciation and amortization	3.11	1.98
Fixed assets written off	0.57	-
Provisions for product warranties	0.23	-
Interest income	-0.38	-0.23
Finance cost	1.15	1.92
Operating profit before working capital changes	28.62	24.98
Changes in working capital
(Increase)/Decrease in inventories	1.57	-24.80
(Increase)/Decrease in trade receivables	-41.01	-36.07
(Increase)/Decrease in short term loans and advances	-21.13	-7.36
(Increase)/Decrease in long term loans and advances	-	-4.22
(Increase)/Decrease in other non-current assets	-6.95	-0.50
Increase/(Decrease) in trade payables	10.11	14.09
Increase/(Decrease) in current liabilities	-3.05	-1.65
Increase/(Decrease) in long term provisions	0.14	-0.05
Increase/(Decrease) in other long term liabilities	-0.01	1.52
Cash used in operating activities	-31.72	-34.08
Less: income tax paid	1.94	7.29
Net cash used in operating activities	-33.66	-41.38
Cash Flow from Investing Activities
Purchase of property, plant and equipment	-8.79	-8.90
Investment in unquoted equity shares	-0.50	-
Interest income	0.38	0.23
Bank deposits other than cash and cash equivalents	1.78	-3.66
Net cash used in investing activities	-7.12	-12.33
Cash Flow from Financing Activities
Proceeds/repayment of borrowings (net)	-12.97	4.91
Finance cost	-1.15	-1.92
Share application money pending allotment	-4.08	3.51
Securities premium received	52.89	58.07
Write off of hare issue expense	-2.75	-2.67
Net cash generated from financing activities	31.93	61.91
Net increase/(decrease) in cash and cash equivalents	-8.85	8.18
Cash and cash equivalents at the beginning of the period	9.80	1.61
Cash and cash equivalents at the end of period	0.94	9.80

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

Cash Flow from Operating Activities

The company reported negative operating cash flow in both FY2025 and FY2024, indicating that the core business has not yet started generating cash despite recording accounting profits. Net profit before tax increased slightly from ₹21.31 crore to ₹23.92 crore, and after non-cash adjustments such as depreciation, operating profit before working capital changes improved to ₹28.62 crore from ₹24.98 crore, showing better operating performance.

However, working capital expansion significantly reduced cash generation. Trade receivables increased by ₹41.01 crore, meaning a large portion of sales has not yet been collected in cash. Additionally, short-term loans and advances rose by ₹21.13 crore and other non-current assets increased by ₹6.95 crore, further absorbing liquidity. Although inventories declined by ₹1.57 crore and trade payables increased by ₹10.11 crore, these positive effects were insufficient to offset the receivable buildup. Consequently, cash used in operating activities reached ₹31.72 crore, and after ₹1.94 crore in taxes, the net operating cash outflow stood at ₹33.66 crore, reflecting strong working-capital dependence.

 

Cash Flow from Investing Activities

Investing activities show moderate but consistent capital expenditure, suggesting the company is investing to expand its operations. The firm spent ₹8.79 crore in FY2025 on property, plant, and equipment, similar to ₹8.90 crore in FY2024, indicating steady investment in infrastructure, equipment, or technology. In addition, the company invested ₹0.50 crore in unquoted equity shares, which may represent strategic investments or partnerships.

On the inflow side, interest income of ₹0.38 crore and withdrawal of bank deposits amounting to ₹1.78 crore provided some cash inflow. Nevertheless, the outflows exceeded inflows, resulting in net cash used in investing activities of ₹7.12 crore, an improvement from ₹12.33 crore outflow in FY2024. This suggests the company slightly moderated its investment spending during the year.

 

Cash Flow from Financing Activities

Financing activities were the main source of cash in FY2025, largely driven by ₹52.89 crore received as securities premium, indicating that the company raised funds through equity issuance at a premium to support growth and working capital.

At the same time, there were several outflows. The company repaid borrowings of ₹12.97 crore, reducing its debt levels, and incurred finance costs of ₹1.15 crore along with share issue expenses of ₹2.75 crore related to capital raising. Share application money pending allotment also declined by ₹4.08 crore, reflecting the conversion or adjustment of previously received investor funds.

Overall, net cash generated from financing activities stood at ₹31.93 crore, lower than ₹61.91 crore in FY2024, indicating reduced fundraising compared to the previous year.

 

Net Change in Cash Position

Despite significant financing inflows, the company ended FY2025 with a net decline in cash and cash equivalents of ₹8.85 crore. This happened because operating losses in cash terms and investment spending exceeded financing inflows. As a result, the cash balance declined from ₹9.80 crore at the beginning of the year to ₹0.94 crore at the end of FY2025, which represents a very low liquidity buffer for the company.

Financial ratios of Garuda Aerospace Private Limited

Particulars	31-03-2025	31-03-2024
Current ratio	4.38	3.41
Debt equity ratio	0.04	0.19
Debt service coverage ratio	1.42	1.01
Return on equity ratio	12.66%	23.50%
Inventory turnover ratio	4.64	7.99
Trade receivables turnover ratio	1.25	1.97
Net capital turnover ratio	1.02	1.75
Net profit ratio	14.67%	14.39%
Return on capital employed	14.88%	21.32%

Summary of the financial ratios for the years 2025 and 2024:

Current Ratio:
The current ratio improved from 3.41 in FY2024 to 4.38 in FY2025, indicating a stronger short-term liquidity position. The company holds significantly higher current assets compared to its current liabilities, which enhances its ability to meet short-term obligations. However, such a high ratio may also suggest relatively underutilized working capital or excess funds tied up in current assets.

Debt–Equity Ratio:
The debt–equity ratio declined sharply from 0.19 in FY2024 to 0.04 in FY2025, reflecting a substantial reduction in the company’s reliance on external borrowings. This indicates a very conservative capital structure with minimal financial risk, as the company is primarily financed through shareholders’ funds.

Debt Service Coverage Ratio:
The debt service coverage ratio increased from 1.01 to 1.42, suggesting an improvement in the company’s ability to service its debt obligations from operating earnings. Although the ratio has strengthened, it remains at a moderate level, indicating that the company has a limited but improving cushion to cover interest and principal repayments.

Return on Equity:
Return on equity declined from 23.50% in FY2024 to 12.66% in FY2025, indicating a reduction in the returns generated on shareholders’ funds. The decline may be attributed to lower profit growth relative to the increase in equity base, suggesting a moderation in overall profitability from the shareholders’ perspective.

Net Profit Ratio:
The net profit ratio improved slightly from 14.39% to 14.67%, reflecting a marginal increase in profitability. This indicates that the company was able to maintain stable cost management and generate slightly higher profit from its revenue during the year.

Return on Capital Employed:
Return on capital employed decreased from 21.32% in FY2024 to 14.88% in FY2025, suggesting a decline in the efficiency with which the company utilized its overall capital. The reduction may indicate lower operating profit generation relative to the total capital employed during the period.

Inventory Turnover Ratio:
The inventory turnover ratio declined from 7.99 to 4.64, indicating slower movement of inventory during FY2025. This suggests that inventory was held for a longer period compared to the previous year, which may point to weaker demand or higher stock levels.

Trade Receivables Turnover Ratio:
The trade receivables turnover ratio decreased from 1.97 to 1.25, indicating slower collection of receivables from customers. This reflects a longer credit period or delays in collections, which could impact the company’s working capital efficiency.

Net Capital Turnover Ratio:
The net capital turnover ratio declined from 1.75 in FY2024 to 1.02 in FY2025, indicating that the company generated lower revenue per unit of capital employed. This suggests a reduction in operational efficiency and utilization of capital during the year.