RECT Rectitude Holdings Ltd.

Overview and Growth

In fiscal 2026, Rectitude Holdings Ltd. recorded $39.74M of revenue, net income of $2.78M, and an operating cash outflow of $1.67M. The $39.74M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Compared with $32.57M in fiscal 2025, revenue recorded a 22.0% year-over-year increase. On a per-share basis, diluted EPS was $0.19, which connects the reported earnings outcome with the company’s diluted share count. The per-share result recorded a 58.3% increase from fiscal 2025 diluted EPS of $0.12. Revenue equaled 1.05x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

After reported cost of revenue, the company retained $12.78M as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 32.2% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was $3.31M, capturing profitability after direct costs and the operating expenses reflected in the statements. The operating result equaled 8.3% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. The bottom-line result was net income of $2.78M, after the operating, financing, tax, and other items recognized for the period. Measured against reported revenue, net income produced a 7.0% margin after operating costs and the remaining recognized items. Before income taxes, the company reported $3.68M of earnings, providing a bridge between the operating result and final net income. Measured against revenue, pretax income equaled 9.3%, adding a pre-tax profitability layer between revenue and net income. Income tax expense totaled $899.44K, providing the reported tax component that separates pretax and after-tax earnings. The income-tax provision equaled 24.4% of pretax income, showing the tax burden absorbed by the year’s earnings. The relationship between net income and period-end equity was 12.8%, indicating the profitability achieved on book capital. The net-income-to-assets relationship measured 7.4%, showing earnings relative to the full balance sheet.

Liquidity and Capital Structure

At period end, the $37.69M asset base was financed through $15.95M of liabilities and $21.74M of equity. At period end, current assets of $26.67M compared with current liabilities of $10.55M, defining the company’s short-term resource position. The current ratio was 2.53x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Reported cash and equivalents were $4.69M, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 44.5% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Borrowings totaled $3.11M, adding a fixed financing obligation alongside the company’s equity capital. Debt equaled 0.14x of book equity, describing the relative scale of borrowing and shareholder capital. The debt-to-assets relationship was 8.2%, comparing borrowing with the total asset balance. The liabilities-to-assets relationship was 42.3%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 12.5%, comparing reported cash and equivalents with the full positive asset balance. Compared with $32.50M in fiscal 2025, the current asset base moved 16.0% and finished higher. Book equity was 18.0% higher than fiscal 2025 equity of $18.42M, showing how shareholder capital changed year over year.

Cash Flow and Earnings Quality

Operating activities used $1.67M of cash, resulting in an operating cash outflow for the year. Capital expenditures used $153.02K in addition to the operating cash outflow, increasing the total cash consumed by operations and investment during the period. The company recorded a $1.82M cash deficit after capital spending for the period. Relative to revenue, the post-investment cash deficit represented 4.6%. Relative to total assets, the post-investment cash deficit measured 4.8%.

Based on the annual report for the fiscal year ending Mar 31, 2026. Analysis generated Oct 21, 2026.