The quarter-on-quarter comparison reveals the severity of the deterioration: net sales crashed 100.00% from ₹8.00 crores in Q2 FY26, whilst the company swung from a marginal loss of ₹0.29 crores to a deeper loss of ₹0.30 crores. Year-on-year metrics paint an even grimmer picture, with sales collapsing 100.00% from ₹13.73 crores in Q3 FY25, when the company had posted a healthy profit of ₹2.79 crores with operating margins exceeding 30%.
The complete absence of revenue generation in Q3 FY26 represents an unprecedented operational breakdown for Auri Grow India, formerly known as Godha Cabcon & Insulation Limited. The company, which manufactures ACSR conductors and insulation products, appears to have experienced a total business standstill, raising urgent questions about supply chain disruptions, customer relationships, or potential regulatory issues.
| Quarter | Net Sales (₹ Cr) | QoQ Change | Net Profit (₹ Cr) | Operating Margin | PAT Margin |
|---|---|---|---|---|---|
| Dec'25 | 0.00 | -100.00% | -0.30 | 0.00% | 0.00% |
| Sep'25 | 8.00 | +38.17% | -0.29 | -0.25% | -3.63% |
| Jun'25 | 5.79 | -91.63% | 0.69 | 16.06% | 11.92% |
| Mar'25 | 69.16 | +403.71% | 3.24 | 0.78% | 4.68% |
| Dec'24 | 13.73 | -83.46% | 2.79 | 30.08% | 20.32% |
| Sep'24 | 83.03 | +761.31% | 0.70 | 1.11% | 0.84% |
| Jun'24 | 9.64 | — | 0.45 | 7.37% | 4.67% |
Financial Performance: A Complete Operational Collapse
The financial metrics for Q3 FY26 reveal a company in severe distress. With zero revenue generation, operating profit before depreciation, interest, and tax (PBDIT) turned deeply negative at -₹0.23 crores, compared to a positive ₹4.13 crores in the year-ago quarter. The company incurred interest expenses of ₹0.12 crores and depreciation of ₹0.04 crores despite generating no sales, highlighting the burden of fixed costs without corresponding revenue.
The profit before tax stood at -₹0.40 crores in Q3 FY26, a stark deterioration from ₹3.71 crores in Q3 FY25. Even after accounting for a tax credit of ₹0.10 crores, the company posted a net loss of ₹0.30 crores. The sequential comparison is equally troubling: whilst Q2 FY26 managed to generate ₹8.00 crores in sales (albeit with a loss of ₹0.29 crores), Q3 witnessed a complete revenue drought.
The company's financial trajectory over the past year has been extraordinarily volatile. FY2025 saw remarkable revenue growth of 993.80% to ₹175.00 crores, driven largely by a single exceptional quarter (Q4 FY25) that contributed ₹69.16 crores. However, this growth proved unsustainable, with FY2026 quarters showing dramatic fluctuations: Q1 at ₹5.79 crores, Q2 at ₹8.00 crores, and Q3 collapsing to zero.
Critical Red Flag: Revenue Sustainability Crisis
Auri Grow India's revenue pattern reveals severe underlying issues. The company swung from ₹83.03 crores in Sep'24 to just ₹9.64 crores in Jun'24, then spiked to ₹69.16 crores in Mar'25, before collapsing to zero in Dec'25. This extreme volatility, culminating in complete revenue cessation, suggests fundamental operational, contractual, or market access problems rather than normal business cyclicality.
Operational Distress: Warning Signs Multiply
The company's return on equity (ROE) of just 1.83% ranks amongst the weakest in the industrial manufacturing sector, indicating extremely poor capital efficiency. This figure represents the average over recent periods, but with current losses mounting, the latest ROE has deteriorated to 4.12%, still far below acceptable standards for manufacturing businesses. For context, higher ROE values indicate better performance, and the sector typically demands double-digit returns to justify equity investment.
Return on capital employed (ROCE) presents an even bleaker picture at -1.75% on average, with the latest figure at 3.12%—barely positive despite significant capital deployment. The company's balance sheet shows shareholder funds of ₹99.48 crores as of March 2025, but this capital base is generating minimal returns whilst supporting ₹69.38 crores in long-term debt.
The debt burden has escalated dramatically, with long-term borrowings surging from just ₹1.44 crores in March 2024 to ₹69.38 crores by March 2025—a 48-fold increase. The debt-to-EBITDA ratio stands at an alarming 4.81 times, whilst EBIT-to-interest coverage has weakened to just 1.58 times, indicating limited ability to service debt obligations from operating profits. With current revenue generation at zero, this debt load poses an existential threat.
Balance Sheet Deterioration Accelerates
Current liabilities exploded to ₹103.96 crores in March 2025 from just ₹0.53 crores a year earlier, driven primarily by trade payables of ₹94.66 crores. This 196-fold increase in payables suggests severe working capital stress and potential supplier relationship breakdown. Current assets of ₹272.29 crores provide some cushion, but the quality and liquidity of these assets remain questionable given the complete absence of revenue generation.
Cash Flow Crisis: Operating Burn Intensifies
The cash flow statement for FY2025 reveals a company consuming cash at an unsustainable rate. Operating cash flow turned deeply negative at -₹105.00 crores, driven by adverse working capital changes of -₹112.00 crores. The company raised ₹101.00 crores through financing activities (primarily debt and equity issuance) to fund this operational cash burn, but such funding cannot continue indefinitely without revenue recovery.
With closing cash of effectively zero as of March 2025 and no revenue generation in the latest quarter, Auri Grow India faces acute liquidity pressure. The company's ability to meet near-term obligations depends entirely on securing additional financing or rapidly restoring revenue generation—neither of which appears imminent based on available information.
| Company | P/E (TTM) | P/BV | ROE (%) | Debt/Equity | Div Yield |
|---|---|---|---|---|---|
| Auri Grow India | 8.04x | 0.33x | 1.83% | 0.08 | — |
| Sona Machinery | 13.90x | 0.76x | 5.56% | -0.11 | — |
| Ultra Wiring | 18.24x | 1.95x | 11.47% | 0.08 | 0.51% |
| Chamunda Electronics | 14.74x | 1.81x | 13.40% | -0.10 | — |
| Manugraph India | 12.01x | 0.81x | 0.00% | 0.01 | — |
| Bombay Metrics | 10.92x | 2.39x | 22.68% | 0.66 | 0.52% |
Peer Comparison: Fundamental Underperformance
Against its industrial manufacturing peers, Auri Grow India's operational metrics reveal significant underperformance. The company's ROE of 1.83% trails far behind competitors like Bombay Metrics (22.68%), Chamunda Electronics (13.40%), and Ultra Wiring (11.47%). Even Sona Machinery, with a modest 5.56% ROE, demonstrates superior capital efficiency.
The valuation discount reflects these fundamental weaknesses. Auri Grow India trades at a price-to-book ratio of just 0.33x, compared to the peer average of approximately 1.50x. Whilst this might superficially appear attractive, the discount is justified by the company's inability to generate adequate returns on its equity base. The P/E ratio of 8.04x, whilst below the peer average of 14x, offers little comfort given the company's current loss-making status and uncertain revenue outlook.
The lack of institutional ownership (0.00% from FIIs, mutual funds, and insurance companies) underscores the market's lack of confidence. With 100% non-institutional holding and zero promoter stake, Auri Grow India lacks the governance oversight and strategic direction typically provided by professional investors or committed promoters.
Valuation Analysis: Deep Discount Masks Fundamental Risks
Auri Grow India's valuation metrics appear superficially attractive but mask severe fundamental deterioration. The stock trades at a P/E ratio of 8.04x based on trailing twelve-month earnings, well below the typical industrial manufacturing multiple of 15-20x. However, this multiple is calculated on historical profitability that has since evaporated, rendering the metric largely meaningless in the current context.
The price-to-book ratio of 0.33x suggests the market values the company at just one-third of its stated book value of ₹1.09 per share. This deep discount reflects investor scepticism about asset quality and the company's ability to generate future returns. With current assets of ₹272.29 crores against total liabilities of ₹173.34 crores, there exists a nominal asset cushion, but the realisable value of these assets in a distressed scenario remains highly uncertain.
The company's Mojo Score of 20 out of 100, placing it firmly in "STRONG SELL" territory, reflects the confluence of negative factors: bearish technical trends, negative financial momentum, below-average quality metrics, and operational losses. Despite a "VERY ATTRACTIVE" valuation grade, the fundamental deterioration overwhelms any valuation appeal.
Shareholding Pattern: Complete Absence of Institutional Support
The shareholding pattern reveals a concerning lack of institutional participation. As of December 2025, the company has zero promoter holding, zero FII investment, zero mutual fund participation, and zero insurance company stakes. The entire shareholding rests with non-institutional investors (100.00%), indicating retail-dominated ownership without professional oversight.
| Quarter | Promoter % | FII % | MF % | Insurance % | Non-Inst % |
|---|---|---|---|---|---|
| Dec'25 | 0.00% | 0.00% | 0.00% | 0.00% | 100.00% |
| Sep'25 | 0.00% | 0.00% | 0.00% | 0.00% | 100.00% |
| Jun'25 | 0.00% | 0.07% | 0.00% | 0.00% | 99.93% |
| Mar'25 | 0.00% | 0.00% | 0.00% | 0.00% | 100.00% |
| Dec'24 | 0.00% | 0.00% | 0.00% | 0.00% | 100.00% |
The brief appearance of 0.07% FII holding in June 2025, which subsequently disappeared by September 2025, suggests even marginal institutional interest proved short-lived. This shareholding structure raises governance concerns and limits access to strategic guidance or capital that institutional investors typically provide.
Stock Performance: Brutal Decline Across All Timeframes
The stock's price performance reflects the underlying business deterioration with devastating clarity. Trading at ₹0.34 as of February 13, 2026, Auri Grow India shares have collapsed 66.34% over the past year, compared to the Sensex's 8.79% gain—generating negative alpha of 75.13 percentage points. The stock currently trades at its 52-week low, having plummeted 66.67% from its 52-week high of ₹1.02.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | -10.53% | -0.89% | -9.64% |
| 1 Month | -46.88% | -0.95% | -45.93% |
| 3 Months | -38.18% | -1.95% | -36.23% |
| 6 Months | -40.35% | +2.85% | -43.20% |
| YTD | -55.26% | -2.80% | -52.46% |
| 1 Year | -66.34% | +8.79% | -75.13% |
| 2 Years | -51.43% | +15.76% | -67.19% |
| 3 Years | -77.33% | +37.07% | -114.40% |
Short-term performance has been particularly brutal, with the stock down 46.88% over the past month alone and 10.53% in the last week. Year-to-date losses stand at 55.26%, underperforming the Sensex by 52.46 percentage points. The stock trades below all key moving averages—5-day (₹0.37), 20-day (₹0.47), 50-day (₹0.64), 100-day (₹0.60), and 200-day (₹0.59)—confirming the entrenched bearish trend.
Technical indicators universally signal distress. The stock exhibits a "MILDLY BEARISH" trend that turned negative on February 4, 2026, with MACD bearish on weekly charts, Bollinger Bands indicating bearish momentum, and on-balance volume showing persistent selling pressure. With a beta of 1.50, the stock demonstrates high volatility—50% more volatile than the broader market—amplifying downside moves during market weakness.
Investment Thesis: Multiple Red Flags Overwhelm Valuation Appeal
The investment case for Auri Grow India has deteriorated comprehensively across all critical parameters. The Mojo framework reveals a company facing existential challenges:
Valuation (VERY ATTRACTIVE): Whilst the stock trades at deeply discounted multiples (P/E 8.04x, P/BV 0.33x), these metrics reflect justified concerns about business viability rather than opportunity. The market's refusal to assign value despite low multiples signals fundamental scepticism.
Quality (BELOW AVERAGE): The company's quality grade reflects weak long-term financial performance. With average ROE of just 1.83% and average ROCE of -1.75%, Auri Grow India demonstrates chronic inability to generate adequate returns. The debt-to-EBITDA ratio of 4.81x and weak interest coverage of 1.58x compound quality concerns.
Financial Trend (NEGATIVE): The near-term financial trajectory has turned decisively negative. The complete absence of revenue in Q3 FY26, coupled with mounting losses and deteriorating margins, indicates severe operational distress. The company's financial trend grade changed to "NEGATIVE" in December 2025, reflecting the catastrophic quarterly results.
Technical Trend (MILDLY BEARISH): Technical indicators confirm the negative fundamental picture. Trading at 52-week lows, below all moving averages, with bearish MACD and deteriorating momentum, the stock offers no technical support for contrarian positioning.
Key Strengths & Risk Factors
Key Strengths
- Deep Valuation Discount: Trading at 0.33x book value and 8.04x trailing P/E, offering potential recovery value if operations stabilise
- No Promoter Pledging: Zero pledged shares eliminates one source of potential forced selling pressure
- Asset Base: Current assets of ₹272.29 crores provide nominal cushion, though realisable value uncertain
- Historical Growth: Demonstrated 993.80% revenue growth in FY2025, indicating capability during favourable periods
- Low Share Price: At ₹0.34, absolute downside theoretically limited, though further decline remains possible
Key Concerns
- Revenue Collapse: Zero sales in Q3 FY26 indicates complete operational breakdown or market access loss
- Mounting Losses: Swung from ₹2.79 crore profit in Q3 FY25 to ₹0.30 crore loss in Q3 FY26
- Debt Burden: Long-term debt surged 48x to ₹69.38 crores; debt-to-EBITDA at 4.81x
- Cash Flow Crisis: Operating cash flow of -₹105 crores in FY25; closing cash effectively zero
- Weak Returns: ROE of 1.83% and ROCE of -1.75% indicate chronic value destruction
- No Institutional Support: Zero promoter, FII, MF, or insurance holdings; 100% retail ownership
- Extreme Volatility: Revenue swings from ₹83 crores to ₹10 crores to ₹69 crores to zero suggest structural instability
Outlook: Critical Monitoring Points
Potential Positive Catalysts
- Revenue restoration in Q4 FY26 would signal operational recovery
- Management disclosure on reasons for Q3 revenue collapse and remedial actions
- Debt restructuring or fresh equity infusion to address liquidity stress
- New customer contracts or order book announcements
- Strategic investor or promoter entry to provide governance and capital
Critical Red Flags
- Continued revenue absence in Q4 FY26 would confirm terminal business decline
- Default on debt obligations given weak cash position and zero operating cash flow
- Further deterioration in working capital or supplier relationships
- Regulatory actions or compliance issues that could explain operational standstill
- Inability to raise fresh capital given current distress and lack of institutional interest
Investors should monitor the company's Q4 FY26 results (due by May 2026) with extreme scrutiny. Any revenue generation would be positive, but the quantum and sustainability will be critical. Management commentary on the causes of Q3's revenue collapse and concrete remedial actions will be essential to assess viability. Without rapid operational recovery, the company faces severe financial distress.
The Verdict: Avoid—Existential Business Risk Overwhelms Valuation Appeal
Score: 20/100
For Fresh Investors: Avoid entirely. The complete absence of revenue generation, mounting losses, elevated debt burden, and lack of institutional support create unacceptable risk. The deep valuation discount is justified by fundamental deterioration and uncertain business viability. No margin of safety exists at current levels given the magnitude of operational challenges.
For Existing Holders: Consider exiting on any price recovery. The Q3 FY26 results represent a severe deterioration from already weak Q2 performance. Without clear evidence of revenue restoration and operational stabilisation, continued holding exposes investors to potential total loss. The 66% decline from 52-week highs reflects market recognition of fundamental distress.
Fair Value Estimate: Not applicable—business viability uncertain. Current price of ₹0.34 reflects appropriate distress valuation given zero revenue generation and mounting losses. Recovery depends entirely on operational turnaround, which remains highly uncertain.
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. The views expressed are based on publicly available information as of the date of publication and may change without notice.
