Whilst the headline numbers appear encouraging, a deeper examination reveals troubling dependencies on non-operating income and a history of inconsistent operational performance. The company's proprietary Mojo score stands at a dismal 23 out of 100, firmly in "Strong Sell" territory, reflecting fundamental weaknesses that continue to plague this erstwhile loss-making entity.
The December 2025 quarter witnessed an extraordinary revenue explosion, with net sales catapulting to ₹6.88 crores from ₹1.45 crores in the preceding quarter—a staggering 374.48% sequential growth. Year-over-year comparisons are even more dramatic, with revenue surging 1620.00% from a minuscule base of ₹0.40 crores in Q3 FY25. However, this volatility underscores the lumpy nature of the company's business model, where quarterly performance swings wildly based on project execution timelines rather than sustainable operational momentum.
| Quarter | Dec'25 | Sep'25 | Jun'25 | Mar'25 | Dec'24 | Sep'24 | Jun'24 |
|---|---|---|---|---|---|---|---|
| Net Sales (₹Cr) | 6.88 | 1.45 | 1.02 | 0.93 | 0.40 | 0.54 | 0.11 |
| QoQ Growth | +374.48% | +42.16% | +9.68% | +132.50% | -25.93% | +390.91% | — |
| Net Profit (₹Cr) | 1.53 | 0.21 | -0.32 | 1.20 | -0.12 | -0.29 | -0.33 |
| Operating Margin | 26.60% | 2.07% | 3.92% | -10.75% | -72.50% | -51.85% | -281.82% |
| PAT Margin | 22.24% | 14.48% | -31.37% | 129.03% | -30.00% | -53.70% | -300.00% |
Financial Performance: Profitability Driven by Non-Core Income
Whilst Ampvolts delivered its highest quarterly net profit of ₹1.53 crores in Q3 FY26, the composition of earnings raises significant red flags. Operating profit before depreciation, interest, and tax (excluding other income) stood at ₹1.83 crores, yielding a respectable operating margin of 26.60%—the strongest in at least seven quarters. However, this improvement was substantially aided by other income of ₹1.10 crores, which constituted a troubling 59.78% of profit before tax of ₹1.84 crores.
The reliance on non-operating income is a persistent concern highlighted in the company's financial trend analysis. Such dependency indicates that core business operations alone cannot sustain profitability, raising questions about the sustainability of earnings. Employee costs remained stable at ₹0.36 crores, whilst interest expenses climbed to ₹0.72 crores from ₹0.44 crores sequentially, reflecting increased borrowing costs as the company scales operations.
On an annual basis, the company's track record remains deeply concerning. For FY25, Ampvolts reported net sales of just ₹1.00 crore with a net profit of effectively zero after rounding, compared to a net loss of ₹2.00 crores in FY24. The five-year sales growth rate stands at 36.51%, but this is offset by a catastrophic five-year EBIT growth rate of -152.53%, underscoring chronic operational inefficiency and inability to convert revenue into sustainable operating profits.
Operational Challenges: Weak Capital Efficiency Despite Strong ROE
Ampvolts presents a paradoxical picture on capital efficiency metrics. The company boasts an average return on equity (ROE) of 28.02% over the past five years, which compares favourably against industry peers and signals strong returns generated on shareholder capital. However, this metric must be interpreted with caution given the company's small equity base and history of losses that have eroded reserves until recent capital infusions.
The latest ROE figure stands at just 1.97%, indicating that the strong historical average masks recent deterioration. More concerning is the return on capital employed (ROCE), which averaged a dismal -82.92% over five years and currently sits at -3.90%. This negative ROCE reveals that the company has consistently destroyed value rather than creating it, failing to generate adequate returns on the total capital employed in the business.
Critical Operational Weaknesses
ROCE Deterioration: Average ROCE of -82.92% over five years with latest at -3.90% indicates persistent value destruction and inability to generate adequate returns on capital employed.
Negative Operating Leverage: Five-year EBIT growth of -152.53% despite 36.51% sales CAGR reveals fundamental operational inefficiencies and inability to scale profitably.
Weak Interest Coverage: Average EBIT to interest ratio of -0.70x means the company cannot even cover interest expenses from operating profits, raising solvency concerns.
The balance sheet shows shareholder funds of ₹49.22 crores as of March 2025, up substantially from ₹17.23 crores in March 2024, driven by capital raising that increased share capital from ₹14.80 crores to ₹25.84 crores. Reserves and surplus improved to ₹23.39 crores from ₹2.43 crores, reflecting accumulated profits and premium from equity issuances. The company maintains minimal long-term debt and is effectively a net cash entity with negative net debt to equity of -0.27, which is a positive from a leverage perspective.
However, current assets ballooned to ₹43.94 crores from ₹12.71 crores, whilst current liabilities jumped to ₹11.70 crores from ₹1.29 crores, suggesting aggressive working capital deployment that may strain liquidity if revenue momentum falters. Fixed assets increased to ₹4.49 crores from ₹1.49 crores, indicating capital expenditure on infrastructure, likely related to electric vehicle charging systems manufacturing.
Industry Context: Niche Player in Competitive Software & EV Charging Space
Ampvolts operates in the computers software and consulting industry whilst also positioning itself as a supplier of electric vehicle charging systems—a strategic pivot that reflects management's attempt to capitalise on India's EV infrastructure buildout. However, the company's micro-cap status (₹62.00 crores market capitalisation) and inconsistent revenue generation suggest it remains a marginal player struggling to gain meaningful market share.
The broader software and consulting sector has faced headwinds from global economic uncertainty, pricing pressures, and intense competition. Ampvolts' inability to demonstrate consistent revenue streams or secure large, recurring contracts indicates it lacks the scale, capabilities, or client relationships of established players. The EV charging opportunity, whilst promising, requires substantial capital investment, technical expertise, and distribution networks that the company appears to be building incrementally.
Institutional Confidence: Virtually Non-Existent
Institutional holdings in Ampvolts stand at a negligible 0.08%, comprising only other domestic institutional investors (DIIs). There is zero participation from foreign institutional investors (FIIs), mutual funds, or insurance companies. This complete absence of institutional interest reflects deep scepticism about the company's business model, governance, and growth prospects among sophisticated investors who conduct rigorous due diligence.
The promoter holding remains stable at 54.64% as of December 2025, with no pledging of shares—a positive indicator of promoter confidence and financial stability. However, the remaining 45.29% is held by non-institutional investors, likely comprising retail shareholders and high net worth individuals who may have limited ability to conduct deep fundamental analysis.
| Company | P/E (TTM) | P/BV | ROE % | Debt/Equity | Div Yield |
|---|---|---|---|---|---|
| Ampvolts | 61.60 | 1.21 | 28.02 | -0.27 | NA |
| Globalspace Tech | 116.61 | 1.20 | 5.70 | 0.15 | NA |
| SagarSoft (India) | 263.75 | 0.84 | 9.67 | -0.31 | 2.11% |
| Ram Info | 21.80 | 0.81 | 15.92 | -0.34 | NA |
| Adroit Info. | NA (Loss Making) | 0.71 | 6.69 | 0.29 | NA |
Peer Comparison: Premium Valuation Without Commensurate Quality
Ampvolts trades at a price-to-earnings ratio of 61.60x on a trailing twelve-month basis, positioning it in the middle of its peer group range but significantly above the industry average P/E of 25x. This represents a substantial valuation premium that appears unjustified given the company's inconsistent profitability, weak operational metrics, and lack of competitive moats.
The company's price-to-book value of 1.21x is higher than most peers (average around 0.90x), suggesting the market is pricing in expectations of future growth that have yet to materialise. Ampvolts' average ROE of 28.02% is indeed superior to peers like Globalspace Tech (5.70%), SagarSoft (9.67%), and Ram Info (15.92%), which partially justifies the premium. However, this ROE figure is inflated by the small equity base and recent capital infusions, with the latest ROE at only 1.97%.
Critically, Ampvolts maintains a net cash position (debt to equity of -0.27), which is better than peers with positive leverage. Yet this balance sheet strength has not translated into operational excellence or consistent profit generation. The company pays no dividend, unlike SagarSoft which offers a 2.11% yield, depriving shareholders of any cash returns whilst they wait for the elusive operational turnaround.
Valuation Analysis: Risky Premium for Unproven Business Model
At the current market price of ₹23.24, Ampvolts commands an enterprise value to sales multiple of 12.22x—an extraordinarily rich valuation for a company with minimal revenue visibility and no demonstrated ability to scale profitably. The negative EV/EBIT of -41.84x and negative EV/EBITDA of -46.44x underscore that the company is being valued on hope rather than tangible earnings power.
The PEG ratio of 0.49x might superficially suggest the stock is undervalued relative to growth expectations, but this metric is misleading given the volatility and unsustainability of recent growth spurts. Historical growth has been erratic, and there is no credible evidence that Ampvolts can maintain the 1620% year-over-year revenue growth witnessed in Q3 FY26.
The company's valuation grade has been classified as "Risky" since July 2023, reflecting the market's recognition that current valuations are not supported by fundamental performance. With a book value per share of ₹19.05, the stock trades at a 22% premium to book value despite the company's chequered profitability record—a premium that appears unjustified.
| Quarter | Promoter % | QoQ Change | FII % | MF % | Insurance % | Other DII % |
|---|---|---|---|---|---|---|
| Dec'25 | 54.64 | 0.00 | 0.00 | 0.00 | 0.00 | 0.08 |
| Sep'25 | 54.64 | 0.00 | 0.00 | 0.00 | 0.00 | 0.08 |
| Jun'25 | 54.64 | +0.07 | 0.00 | 0.00 | 0.00 | 0.03 |
| Mar'25 | 54.57 | +0.27 | 0.00 | 0.00 | 0.00 | 0.08 |
| Dec'24 | 54.30 | — | 0.00 | 0.00 | 0.00 | 0.08 |
Shareholding Pattern: Stable Promoter Base, Zero Institutional Interest
Promoter holding has remained remarkably stable at 54.64% for the past three quarters, following marginal increases of 0.07% and 0.27% in June and March 2025 respectively. The absence of promoter selling is encouraging and suggests confidence in the business direction. Critically, there is no pledging of promoter shares, eliminating concerns about forced selling or financial distress at the promoter level.
However, the complete absence of foreign institutional investors, mutual funds, and insurance companies is a glaring red flag. Institutional investors, who employ rigorous fundamental analysis and have access to management, have collectively chosen to avoid Ampvolts entirely. The only institutional presence is a minuscule 0.08% from other DIIs, which has remained largely unchanged. This institutional vacuum speaks volumes about professional investors' assessment of the company's risk-reward profile.
The remaining 45.29% non-institutional holding comprises retail and individual investors who may lack the resources to conduct deep due diligence and may be attracted by the stock's volatility and speculative appeal. This shareholder composition creates liquidity risks and heightened volatility, as retail investors tend to be more sentiment-driven than fundamentals-focused.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | +4.83% | +0.43% | +4.40% |
| 1 Month | +7.00% | -0.24% | +7.24% |
| 3 Months | +7.05% | -0.94% | +7.99% |
| 6 Months | -9.64% | +4.29% | -13.93% |
| YTD | +0.87% | -1.81% | +2.68% |
| 1 Year | -25.54% | +9.85% | -35.39% |
| 2 Years | -47.04% | +17.73% | -64.77% |
| 3 Years | -50.39% | +37.89% | -88.28% |
Stock Performance: Severe Underperformance Despite Recent Rally
Ampvolts has delivered catastrophic returns for long-term shareholders, with the stock down 25.54% over the past year against the Sensex's 9.85% gain—a negative alpha of 35.39 percentage points. The two-year and three-year pictures are even grimmer, with losses of 47.04% and 50.39% respectively, whilst the Sensex posted gains of 17.73% and 37.89%. This consistent and severe underperformance underscores the market's loss of confidence in the company's ability to execute its business plan.
Recent price action shows some improvement, with the stock gaining 4.83% over the past week and 7.00% over the past month, outperforming the Sensex during these periods. However, this appears to be a technical bounce rather than a fundamental re-rating, as the stock remains 36.12% below its 52-week high of ₹36.38 and continues to trade in a "Mildly Bearish" technical trend.
The stock exhibits extremely high volatility with a one-year volatility of 60.86%—more than five times the Sensex's 11.44%. With a beta of 1.50, Ampvolts is significantly more volatile than the broader market, amplifying both gains and losses. The risk-adjusted return of -0.42 over the past year places it firmly in the "High Risk Low Return" category—the worst possible quadrant for investors.
Investment Thesis: Speculative Turnaround Play with High Failure Risk
The investment case for Ampvolts rests entirely on the thesis that management can leverage recent capital raises and the Q3 FY26 revenue surge to build a sustainable, profitable business in EV charging infrastructure and software services. Proponents might point to the 28.02% average ROE, net cash balance sheet, and zero promoter pledging as positives. The company's positioning in the nascent EV charging space could theoretically provide long-term growth optionality if execution improves.
However, the weight of evidence suggests this is a highly speculative bet with poor risk-reward characteristics. The company has a documented history of losses, with only intermittent quarterly profits driven substantially by non-operating income. The five-year EBIT growth of -152.53% demonstrates chronic operational weakness. The complete absence of institutional investors signals that sophisticated market participants see insurmountable challenges in the business model or execution capability.
Technical indicators paint a mixed picture, with the stock in a "Mildly Bearish" trend since February 1, 2026, though some weekly indicators show bullish divergences. The stock trades below all major moving averages (5-day, 20-day, 50-day, 100-day, and 200-day), indicating weak momentum. Immediate resistance lies at the 20-day moving average of ₹20.82, with major resistance at the 100-day moving average of ₹21.82 and the 200-day moving average of ₹24.89.
✓ Key Strengths
- Strong average ROE of 28.02% demonstrates potential for high returns on equity capital when operations stabilise
- Net cash balance sheet with negative net debt to equity of -0.27 eliminates solvency concerns and provides financial flexibility
- Zero promoter pledging indicates promoter financial stability and confidence in business prospects
- Q3 FY26 operating margin of 26.60% shows capability to generate healthy margins when revenue scales
- Positioning in EV charging infrastructure aligns with India's electric mobility push and government support
- Recent capital raise strengthens balance sheet with shareholder funds of ₹49.22 crores
- Stable promoter holding at 54.64% with marginal increases over past year demonstrates commitment
⚠ Key Concerns
- Catastrophic five-year EBIT growth of -152.53% reveals persistent operational inefficiency and value destruction
- Average ROCE of -82.92% and latest ROCE of -3.90% indicate chronic inability to generate adequate returns on capital employed
- Heavy reliance on non-operating income (59.78% of PBT in Q3 FY26) raises sustainability concerns about profitability
- Zero institutional participation (FII, MF, Insurance) signals professional investors' lack of confidence in business model
- Extremely high volatility (60.86%) and beta (1.50) create outsized downside risk during market corrections
- Severe underperformance with -25.54% one-year return vs Sensex +9.85%, negative alpha of -35.39%
- Lumpy, unpredictable revenue with wild quarterly swings undermines visibility and planning
- Micro-cap status (₹62 crores) limits liquidity and institutional appetite
Outlook: Critical Juncture Requiring Sustained Execution
Ampvolts stands at a critical juncture where the next 2-3 quarters will determine whether Q3 FY26's performance represents a genuine operational turnaround or merely another false dawn in a series of inconsistent results. For the bull case to materialise, the company must demonstrate revenue sustainability above ₹5 crores per quarter, maintain operating margins above 20% without excessive reliance on other income, and secure visible order books in the EV charging segment.
Management must also address the institutional void by improving corporate governance, enhancing disclosure quality, and building credibility through consistent delivery. The company needs to articulate a clear strategy for scaling its EV charging business, including customer acquisition plans, technology differentiation, and capital allocation priorities.
↑ Positive Catalysts
- Sustaining quarterly revenue above ₹5 crores with visible order pipeline
- Maintaining operating margins above 20% for three consecutive quarters
- Securing large EV charging infrastructure contracts with government or corporates
- Entry of even small institutional investors (mutual funds or insurance) signalling credibility
- Reducing other income dependency below 30% of PBT
↓ Red Flags to Watch
- Quarterly revenue falling below ₹2 crores indicating loss of momentum
- Return to quarterly losses or negative operating margins
- Continued absence of institutional participation after 2-3 quarters
- Working capital stress with declining current ratio or liquidity issues
- Promoter stake reduction or any share pledging
The technical setup remains unconvincing, with the stock needing to decisively break above the 200-day moving average at ₹24.89 and establish a sustained uptrend above ₹26-27 levels to attract momentum buyers. Until then, the path of least resistance remains sideways to lower, particularly given the weak broader market sentiment and lack of fundamental catalysts.
The Verdict: High-Risk Speculation, Not Investment
Score: 23/100
For Fresh Investors: Avoid entirely. Ampvolts remains a loss-making company with erratic revenues, negative ROCE, and zero institutional backing. The Q3 FY26 result, whilst superficially impressive, relies heavily on non-operating income and does not establish a sustainable profit trajectory. The 61.60x P/E ratio and 12.22x EV/Sales multiple represent excessive valuations for an unproven business model. With superior alternatives available in the software and EV infrastructure space, there is no compelling reason to allocate capital to this high-risk, low-visibility micro-cap.
For Existing Holders: Exit on any strength above ₹24-25 levels. The stock has destroyed shareholder value consistently over the past three years (down 50.39%) and shows no signs of sustainable operational improvement. Whilst the recent capital raise provides a temporary financial cushion, the company has repeatedly failed to convert capital into profitable growth. The complete absence of institutional interest after multiple quarters of supposed "turnaround" is a damning indictment. Reallocate capital to quality businesses with proven track records.
Fair Value Estimate: ₹15.00-17.00 (35-27% downside from current levels), based on 0.80-0.90x price-to-book given the company's below-average quality grade and uncertain earnings visibility.
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. Past performance is not indicative of future results, and all investments carry risk of loss.
