Sun Drops Energia Annual Reports, Balance Sheet and Financials

Sun Drops Energia Private Limited Standalone Balance Sheet (Rs. in Crores)

Sun Drops Energia Private Limited Standalone Profit & Loss Statement (Rs in Crores)

Sun Drops Energia Private Limited Standalone Cash Flow Statement (Rs in Crores) 

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

Cash Flow from Operating Activities
Despite a strong increase in profit before tax from ₹35.19 crore to ₹69.15 crore, the company’s operating cash flow sharply deteriorated to a negative ₹156.77 crore in FY2025 from a positive ₹34.05 crore in FY2024. This divergence is mainly driven by heavy working capital outflows, particularly significant increases in inventories, trade receivables, and other assets, along with a large reduction in trade payables compared to the previous year. While provisions increased and provided some cushion, they were insufficient to offset the substantial cash tied up in operations. This indicates that the company’s growth is absorbing cash rapidly, potentially due to expansion, delayed collections, or inventory build-up, raising concerns about cash efficiency despite higher accounting profits.

Cash Flow from Investing Activities
Investing activities show a substantial cash outflow of ₹121.28 crore in FY2025 compared to ₹19.84 crore in FY2024, reflecting aggressive capital deployment. The primary driver appears to be a sharp increase in the purchase of long-term assets, suggesting expansion or capacity building initiatives. Additionally, other outflows further contributed to the negative cash position. Unlike the previous year, there were no proceeds from the sale of investment property to offset these expenditures. Overall, the company is heavily investing in future growth, but this is significantly straining its cash reserves in the short term.

Cash Flow from Financing Activities
Financing activities provided strong support, generating a net inflow of ₹348.13 crore in FY2025 compared to ₹14.96 crore in FY2024. This was largely driven by a substantial issuance of share capital amounting to ₹519.12 crore, indicating equity fundraising to support expansion and offset operational and investing cash deficits. However, there were notable outflows, including lease payments and a significant “other” cash outflow, which partially reduced the net inflow. The decline in borrowings suggests reliance more on equity than debt. Overall, financing activities played a crucial role in maintaining liquidity.

Net Increase/decrease in Cash & cash equivalents
Despite negative operating and investing cash flows, the company managed to increase its cash balance by ₹70.08 crore in FY2025, primarily due to strong financing inflows. Cash and cash equivalents rose from ₹32.71 crore to ₹102.80 crore by year-end. This indicates that while the company currently maintains a comfortable liquidity position, it is heavily dependent on external funding, especially equity infusion, to sustain its operations and investments. Continued negative operating cash flow could pose risks if such funding is not consistently available

Financial ratios of Sun Drops Energia Private Limited.

Summary of Financial Ratios for the year 2025 and 2024.

Current Ratio
The current ratio increased significantly from 1.39 in FY2024 to 7.70 in FY2025, indicating a very strong liquidity position. The company has ample current assets to meet its short-term liabilities. However, such a high ratio may also suggest inefficient utilization of resources, with excess funds tied up in working capital.

Debt Equity Ratio
The debt-equity ratio declined from 0.29 to 0.08, reflecting a substantial reduction in financial leverage. This indicates that the company is less dependent on external borrowings and has a stronger equity base, improving long-term financial stability.

Debt Service Coverage Ratio
The debt service coverage ratio improved from 7.16 to 14.80, showing that the company has a strong ability to meet its debt obligations from operating earnings. This reflects improved solvency and lower financial risk.

Return on Equity
Return on equity decreased sharply from 36.73% to 8.48%, indicating a significant decline in returns generated for shareholders. This suggests reduced profitability and less efficient use of equity capital.

Inventory Turnover Ratio
The inventory turnover ratio declined from 5.64 to 3.92, indicating slower movement of inventory. This may point to overstocking or weaker demand, affecting operational efficiency.

Trade Receivables Turnover Ratio
The trade receivables turnover ratio improved slightly from 0.22 to 0.26, but remains very low. This indicates slow collection from customers and inefficient credit management.

Trade Payables Turnover Ratio
The trade payables turnover ratio decreased significantly from 0.63 to 0.16, suggesting that the company is taking longer to pay its suppliers. This may help short-term liquidity but could affect supplier relationships.

Net Capital Turnover Ratio
The net capital turnover ratio dropped sharply from 4.14 to 1.16, indicating inefficient utilization of capital in generating revenue. This reflects a decline in operational efficiency.

Net Profit %
The net profit margin decreased from 16.17% to 13.98%, showing that profitability has declined, possibly due to increased costs or reduced margins.

Return on Capital Employed
Return on capital employed fell significantly from 50.27% to 19.98%, indicating reduced efficiency in using total capital for generating profits.

Return on Investment
Return on investment improved from 6.44% to 9.76%, suggesting better returns from investments, which is a positive sign despite overall declining profitability.