The stock, trading at ₹1.19 as of February 13, 2026, has remained flat on the day but reflects a deeply troubled long-term trajectory. Over the past year, shares have plunged 35.68%, massively underperforming the Sensex's 8.52% gain by a staggering 44.20 percentage points. The company's proprietary Mojo Score stands at a dismal 21 out of 100, firmly in "Strong Sell" territory, reflecting weak fundamentals, bearish technicals, and deteriorating financial trends.
Financial Performance: Revenue Evaporation Masks Margin Mirage
In Q3 FY26, Abhinav Leasing reported net sales of ₹0.93 crores, a precipitous 69.61% decline from ₹3.06 crores in Q2 FY26. The year-on-year comparison is even more alarming, with revenues collapsing 89.64% from ₹8.98 crores in Q3 FY25. This represents the continuation of a disturbing trend: revenues have been in freefall for the past seven quarters, plummeting from ₹18.37 crores in Q2 FY25 to less than ₹1 crore in the latest quarter.
Despite the revenue carnage, the company managed to post a net profit of ₹0.17 crores in Q3 FY26, down 60.47% quarter-on-quarter but representing a turnaround from the ₹0.55 crore loss recorded a year earlier. This profit materialisation, however, appears more a function of drastically reduced interest expenses (₹0.63 crores in Q3 FY26 versus ₹2.70 crores in Q2 FY25) than any genuine operational improvement.
| Quarter | Revenue (₹ Cr) | QoQ Change | Net Profit (₹ Cr) | QoQ Change | PAT Margin |
|---|---|---|---|---|---|
| Dec'25 | 0.93 | -69.61% | 0.17 | -60.47% | 18.28% |
| Sep'25 | 3.06 | +774.29% | 0.43 | +59.26% | 14.05% |
| Jun'25 | 0.35 | -86.59% | 0.27 | +208.00% | 77.14% |
| Mar'25 | 2.61 | -70.94% | -0.25 | +54.55% | -9.58% |
| Dec'24 | 8.98 | +2.28% | -0.55 | -1016.67% | -6.12% |
| Sep'24 | 8.78 | -52.20% | 0.06 | -76.92% | 0.68% |
| Jun'24 | 18.37 | — | 0.26 | — | 1.42% |
The operating profit margin (excluding other income) surged to 87.10% in Q3 FY26 from 14.71% in Q2 FY26, but this dramatic expansion is misleading. With such minimal revenue, even small absolute cost reductions translate into outsized percentage margin improvements. The PAT margin of 18.28% similarly reflects the low revenue base rather than genuine profitability strength.
Operational Challenges: A Business in Structural Decline
The fundamental issue confronting Abhinav Leasing is not margin management but revenue generation. The company's five-year sales growth stands at a deeply negative 29.92%, indicating a systematic erosion of its business base. For FY25, the company reported annual revenues of ₹39.00 crores, up 18.20% from ₹33.00 crores in FY24, but this growth appears to have been a temporary anomaly given the subsequent quarterly collapses.
The balance sheet reveals additional stress. Current liabilities have declined from ₹39.19 crores in March 2024 to ₹25.95 crores in March 2025, suggesting reduced business activity rather than improved financial management. Current assets stood at just ₹8.37 crores as of March 2025, up from ₹2.20 crores the previous year, but this increase is insufficient to cover the liability base.
Return on equity (ROE) stands at a meagre 0.63% on average, with the latest quarterly ROE at a negative 1.47%, indicating the company is destroying shareholder value. This weak profitability metric places Abhinav Leasing far below acceptable standards for financial companies, where ROE above 15% is typically considered healthy.
Critical Operational Concerns
Revenue Collapse: Quarterly revenues have plummeted from ₹18.37 crores in Q2 FY25 to ₹0.93 crores in Q3 FY26, representing a 94.94% decline over five quarters. This systematic erosion suggests fundamental business model challenges rather than temporary cyclical weakness.
Weak Capital Efficiency: With ROE at 0.63% and latest quarterly ROE at -1.47%, the company is failing to generate adequate returns on shareholder capital. For an NBFC, this represents a critical failure of the core lending and investment function.
Balance Sheet Quality: High Leverage Amid Shrinking Operations
Abhinav Leasing's balance sheet reflects the challenges of a micro-cap NBFC struggling to maintain operational viability. Shareholder funds stood at ₹6.08 crores as of March 2025, marginally up from ₹5.85 crores in March 2024. The company carries no long-term debt, but current liabilities of ₹25.95 crores create a debt-to-equity ratio of 3.76, indicating high financial leverage.
Fixed assets have declined to ₹0.07 crores from ₹0.10 crores, whilst the company holds no investments on its books. The cash flow statement for FY25 shows operating cash flow of ₹7.00 crores, but this was offset by financing cash outflow of ₹12.00 crores, resulting in minimal net cash generation.
The book value per share stands at ₹1.22, marginally above the current market price of ₹1.19, suggesting the stock trades near its liquidation value. This price-to-book ratio of 0.88x indicates the market ascribes little value to the company's ongoing operations or future earnings potential.
Peer Comparison: Lagging Across All Metrics
When benchmarked against micro-cap NBFC peers, Abhinav Leasing's performance appears particularly weak. Whilst the company is loss-making on a trailing twelve-month basis (rendering P/E comparisons meaningless), its ROE of 0.63% significantly trails peers such as Rich Universe (1.98% ROE) and Panafic Industrieals (1.83% ROE).
| Company | P/E (TTM) | ROE (%) | Debt/Equity | Price/Book |
|---|---|---|---|---|
| Abhinav Leasing | NA (Loss Making) | 0.63% | 3.76 | 0.88 |
| Rich Universe | 26.80 | 1.98% | 0.22 | 0.87 |
| Panafic Industrieals | 23.00 | 1.83% | 0.35 | 0.57 |
| Williamson Financial | NA (Loss Making) | 0.00% | -1.20 | -0.02 |
| Munoth Communication | NA (Loss Making) | 0.00% | 0.08 | 0.35 |
The company's debt-to-equity ratio of 3.76 stands out as particularly elevated compared to peers, with Rich Universe at 0.22 and Panafic at 0.35. This high leverage amplifies risk in a business already struggling with revenue generation. Whilst Abhinav Leasing's price-to-book ratio of 0.88x appears reasonable, this metric offers little comfort when the underlying business is contracting rapidly.
Valuation Analysis: Fair Rating Masks Fundamental Weakness
Abhinav Leasing currently carries a "Fair" valuation grade, having been downgraded from "Very Expensive" in July 2025. However, this fair rating is misleading in the context of the company's operational deterioration. The stock trades at a price-to-book ratio of 0.88x, which appears reasonable on the surface but reflects the market's assessment that the company's assets are worth little more than their book value.
With negative trailing twelve-month earnings, traditional valuation metrics such as P/E ratio are inapplicable. The EV/EBITDA multiple of -17.20x and EV/EBIT of -16.80x reflect negative enterprise value, a situation that occurs when cash and equivalents exceed the sum of market capitalisation and debt. The EV/Sales ratio of 1.93x might appear modest, but given the revenue collapse, this metric provides little insight into fair value.
The stock trades 36.36% below its 52-week high of ₹1.87 and 22.68% above its 52-week low of ₹0.97. This positioning near the lower end of the annual range reflects sustained selling pressure as investors reassess the company's prospects.
Shareholding Pattern: Minimal Promoter Stake Raises Governance Questions
The shareholding structure of Abhinav Leasing reveals a critical red flag: promoter holding stands at just 3.66%, unchanged over the past five quarters. This extraordinarily low promoter stake is highly unusual for an Indian listed company and raises serious questions about management alignment with shareholder interests.
| Category | Dec'25 | Sep'25 | Jun'25 | Mar'25 | QoQ Change |
|---|---|---|---|---|---|
| Promoter | 3.66% | 3.66% | 3.66% | 3.66% | 0.00% |
| FII | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Mutual Funds | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Insurance | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Non-Institutional | 96.34% | 96.34% | 96.34% | 96.34% | 0.00% |
The remaining 96.34% is held by non-institutional investors, with zero participation from foreign institutional investors (FIIs), mutual funds, or insurance companies. This complete absence of institutional interest signals that sophisticated investors have thoroughly evaluated and rejected this stock. The stable shareholding pattern over recent quarters suggests no meaningful buying or selling activity, indicating the stock is largely ignored by the investment community.
Stock Performance: Systematic Underperformance Across All Timeframes
Abhinav Leasing's stock price performance has been catastrophic across virtually all measurement periods. Over the past year, shares have declined 35.68% whilst the Sensex gained 8.52%, resulting in negative alpha of 44.20 percentage points. This dramatic underperformance reflects the market's loss of confidence in the company's business model and management.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | +10.19% | -1.14% | +11.33% |
| 1 Month | +5.31% | -1.20% | +6.51% |
| 3 Months | -8.46% | -2.19% | -6.27% |
| 6 Months | -8.46% | +2.59% | -11.05% |
| YTD | +2.59% | -3.04% | +5.63% |
| 1 Year | -35.68% | +8.52% | -44.20% |
| 2 Years | -48.93% | +15.47% | -64.40% |
| 3 Years | -34.25% | +36.73% | -70.98% |
The longer-term picture is equally bleak. Over three years, the stock has fallen 34.25% whilst the Sensex surged 36.73%, producing negative alpha of 70.98 percentage points. The ten-year return of -94.08% versus the Sensex's 259.46% gain represents a near-total destruction of shareholder wealth.
Recent short-term gains (10.19% over one week, 5.31% over one month) appear to be technical bounces rather than fundamental improvements. The stock's beta of 1.50 indicates high volatility, with price movements 50% more extreme than the broader market. This high-beta characteristic, combined with negative returns, places Abhinav Leasing in the worst possible category: high risk with low returns.
Investment Thesis: Multiple Red Flags Justify Strong Sell Rating
The investment case against Abhinav Leasing is overwhelming. The company's Mojo Score of 21 out of 100 places it firmly in "Strong Sell" territory, reflecting deterioration across all four key assessment parameters: valuation, quality, financial trend, and technical indicators.
The quality grade of "Below Average" reflects the company's weak long-term financial performance, with five-year sales growth at -29.92% and average ROE of just 0.63%. The complete absence of institutional holdings (0.0%) indicates sophisticated investors have thoroughly rejected this stock. The financial trend classification of "Flat" is generous given the ongoing revenue collapse, whilst technical indicators show the stock trading below all major moving averages in a mildly bearish trend.
Key Strengths & Risk Factors
KEY STRENGTHS
- Return to quarterly profitability after previous losses
- Zero long-term debt reduces financial risk
- Operating margin expansion to 87.10% in Q3 FY26
- PAT margin improvement to 18.28% from 14.05% QoQ
- Price-to-book ratio of 0.88x near liquidation value
KEY CONCERNS
- Revenue collapsed 89.64% YoY to ₹0.93 crores in Q3 FY26
- Systematic revenue decline over seven consecutive quarters
- ROE of 0.63% indicates severe capital inefficiency
- Promoter holding at minimal 3.66% raises governance concerns
- Zero institutional investor participation signals rejection
- Stock down 35.68% over one year vs Sensex +8.52%
- Debt-to-equity ratio of 3.76 indicates high leverage
- Mojo Score of 21/100 in Strong Sell territory
Outlook: Critical Monitoring Points
POSITIVE CATALYSTS
- Stabilisation of quarterly revenues above ₹5 crores
- Improvement in ROE to double-digit levels
- Increase in promoter holding above 25%
- Entry of institutional investors (FII/MF)
RED FLAGS TO WATCH
- Further revenue decline below ₹0.50 crores quarterly
- Return to quarterly losses in Q4 FY26
- Any reduction in already minimal promoter stake
- Breach of regulatory capital adequacy requirements
- Continued absence of institutional interest
The Verdict: Exit Recommended
Score: 21/100
For Fresh Investors: Avoid entirely. The combination of collapsing revenues, minimal promoter holding, zero institutional interest, and systematic wealth destruction makes this an unsuitable investment at any price.
For Existing Holders: Exit at the earliest opportunity. The Q3 FY26 results confirm the continuation of structural business decline rather than temporary challenges. With revenues down 89.64% year-on-year and no signs of stabilisation, further downside appears likely.
Rationale: Abhinav Leasing exhibits multiple critical failures: systematic revenue collapse over seven quarters, ROE of 0.63% indicating severe capital inefficiency, promoter holding of just 3.66%, complete absence of institutional investors, and stock price destruction of 35.68% over one year. The modest Q3 profit of ₹0.17 crores cannot offset these fundamental weaknesses. Until the company demonstrates sustained revenue stabilisation above ₹5 crores quarterly and ROE improvement to acceptable levels, this stock remains uninvestable.
Note— ROCE = (EBIT - Other income)/(Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions.
