The Gujarat-based company, operating from Surat's Empire Square, presents a troubling financial picture with zero revenue generation across all reported quarters. The Q3 FY26 loss of ₹0.48 crores represents a sixteen-fold deterioration compared to the ₹0.03 crores loss in Q3 FY25, highlighting accelerating operational challenges. With negative shareholder funds of ₹0.78 crores as of March 2025 and a negative book value per share of ₹2.55, Callista Industries faces fundamental solvency concerns that overshadow recent stock price momentum.
Financial Performance: Complete Revenue Absence Drives Losses
Callista Industries' Q3 FY26 results reveal a company in severe operational distress. The net loss of ₹0.48 crores occurred despite zero reported sales, with operating profit before depreciation, interest and tax (PBDIT) excluding other income standing at ₹-0.63 crores. A modest other income of ₹0.15 crores provided limited relief, reducing the operating loss to ₹0.48 crores before tax.
| Quarter | Dec'25 | Sep'25 | Jun'25 | Mar'25 | Dec'24 | Sep'24 |
|---|---|---|---|---|---|---|
| Net Sales (₹ Cr) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| PBDIT Excl OI (₹ Cr) | -0.63 | -0.05 | -0.03 | -0.61 | -0.03 | -0.01 |
| Other Income (₹ Cr) | 0.15 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Profit (₹ Cr) | -0.48 | -0.05 | -0.03 | -0.61 | -0.03 | -0.01 |
| QoQ Change (%) | -860.00% | -66.67% | +95.08% | -1933.33% | -200.00% | — |
The sequential quarterly analysis reveals alarming volatility. After showing modest improvement in Q2 FY26 with a loss of just ₹0.05 crores, Q3 FY26 witnessed a dramatic deterioration. The company's inability to generate any revenue whatsoever across multiple quarters indicates either complete operational shutdown or fundamental business model failure. Zero employee costs across all periods suggest minimal to no active operations.
On a nine-month basis for FY26 (April-December 2025), cumulative losses stand at ₹0.56 crores, compared to ₹0.05 crores in the corresponding period of FY25, representing an eleven-fold increase in losses. This deterioration occurred despite the company maintaining zero debt and minimal current liabilities of ₹0.15 crores as of March 2025.
Critical Operational Concerns
Zero Revenue Generation: The complete absence of sales across all reported quarters indicates either business suspension or fundamental operational failure. With no employee costs and minimal other income, Callista Industries appears to have ceased meaningful trading activities.
Accelerating Losses: Despite zero operational activity, the company continues to incur losses, suggesting ongoing administrative or statutory expenses without corresponding revenue generation.
Balance Sheet Erosion: Negative Networth Deepens
Callista Industries' balance sheet as of March 2025 reveals fundamental solvency issues. Shareholder funds stood at negative ₹0.78 crores, representing a significant deterioration from negative ₹0.15 crores in March 2024. This erosion stems from accumulated reserves and surplus of negative ₹3.82 crores against share capital of ₹3.05 crores, resulting in a book value per share of negative ₹2.55.
The company's asset base remains minimal, with current assets of just ₹0.20 crores unchanged from the previous year. Fixed assets and investments stand at zero, indicating no productive capacity or strategic holdings. Long-term debt increased to ₹1.37 crores from ₹0.75 crores, though this remains manageable given the small scale. However, with negative networth, the debt-to-equity ratio becomes meaningless from a traditional analysis perspective.
Return on capital employed (ROCE) averaged negative 8.24% over recent periods, with the latest figure at a severely concerning negative 64.00%. Return on equity (ROE) calculations become inapplicable given the negative book value. These metrics underscore fundamental capital destruction rather than value creation.
Capital Efficiency Breakdown
With ROCE at negative 64.00% and ROE incalculable due to negative networth, Callista Industries demonstrates severe capital inefficiency. The company consumes rather than generates returns, with no visible path to profitability given the complete absence of revenue-generating operations.
Peer Comparison: Underperformance Across All Metrics
Within the trading sector, Callista Industries stands out for all the wrong reasons. A comparison with industry peers highlights the company's fundamental weaknesses relative to established trading entities.
| Company | P/E (TTM) | ROE (%) | Debt/Equity | P/BV | Div Yield |
|---|---|---|---|---|---|
| Callista Industries | 5118.27x | 0.00% | -1.37x | -51.18x | — |
| MMTC | 141.13x | 8.47% | -0.92x | 5.16x | — |
| Lloyds Enterprises | 29.08x | 7.91% | 0.04x | 2.24x | 0.41% |
| PTC India | 8.70x | 9.89% | -0.41x | 0.96x | 6.15% |
| Optiemus Infra | 55.51x | 14.44% | 0.21x | 5.34x | — |
Callista Industries' ROE of 0.00% compares unfavourably against peer averages of approximately 10%. The negative price-to-book value of -51.18x reflects the market's recognition of the company's negative networth, whilst peers trade at positive multiples ranging from 0.96x to 5.34x. The astronomical P/E ratio of 5118.27x results from minimal earnings relative to market capitalisation, rendering traditional valuation metrics largely meaningless.
At a market capitalisation of ₹50.00 crores, Callista Industries ranks amongst the smallest entities in the peer group, lacking the scale, operational capabilities, and financial strength of established trading companies. No institutional holdings and zero dividend payments further underscore the company's inability to attract sophisticated investors or reward shareholders.
Valuation Analysis: Extreme Risk Premium Despite Price Surge
Trading at ₹168.00 as of February 11, 2026, Callista Industries' stock price appears entirely disconnected from fundamental reality. The shares have surged 1916.81% over five years, dramatically outpacing the Sensex return of 63.46% by an alpha of 1853.35%. However, this extraordinary price appreciation occurred despite continuous operational deterioration and mounting losses.
Recent momentum shows similar disconnection: the stock gained 182.31% over three months and 40.06% over one month, whilst fundamentals continued worsening. Year-to-date returns of 45.12% contrast sharply with the Sensex decline of 1.16%, generating an alpha of 46.28%. This price behaviour suggests speculative trading rather than fundamental value recognition.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Day | +1.82% | -0.05% | +1.87% |
| 1 Week | +5.83% | +0.50% | +5.33% |
| 1 Month | +40.06% | +0.79% | +39.27% |
| 3 Months | +182.31% | +0.43% | +181.88% |
| YTD | +45.12% | -1.16% | +46.28% |
| 5 Years | +1916.81% | +63.46% | +1853.35% |
The company's valuation grade stands at "RISKY" since August 2025, appropriately reflecting the fundamental concerns. With a P/E ratio of 5118x and negative book value resulting in a P/BV of -51.18x, traditional valuation frameworks break down entirely. The stock trades above all moving averages (5-day at ₹163.68, 20-day at ₹141.89, 50-day at ₹119.44, and 100-day at ₹87.93), indicating strong technical momentum despite fundamental weakness.
Shareholding Pattern: Stable but Concerning Composition
Callista Industries' shareholding structure has remained remarkably stable, with promoter holding steady at 47.56% across the last five reported quarters. The promoter group, led by Rashmi Ravi Sharma (22.05%), Sanjaykumar R Bhalani (12.77%), and Jignesh B Rajpara (12.74%), maintains control without pledging any shares—a rare positive in an otherwise concerning profile.
| Shareholder Category | Dec'25 | Sep'25 | Jun'21 | Mar'21 |
|---|---|---|---|---|
| Promoter | 47.56% | 47.56% | 47.56% | 47.56% |
| FII | 0.00% | 0.00% | 0.00% | 0.00% |
| Mutual Funds | 0.00% | 0.00% | 0.00% | 0.00% |
| Insurance | 0.00% | 0.00% | 0.00% | 0.00% |
| Non-Institutional | 52.44% | 52.44% | 52.44% | 52.44% |
However, the complete absence of institutional investors—zero FII, mutual fund, insurance, or other DII holdings—signals sophisticated investors' recognition of the company's fundamental challenges. The 52.44% non-institutional holding likely comprises retail investors attracted by price momentum rather than fundamental value. This shareholding composition increases volatility risk and suggests limited liquidity during potential downturns.
Technical Momentum: Bullish Trend Defies Fundamentals
Despite deteriorating fundamentals, Callista Industries maintains a "BULLISH" technical trend since February 5, 2026, when the trend changed at ₹161.90. The stock trades well above its 52-week low of ₹14.44, representing a gain of 1063.43%, though it remains marginally below the 52-week high of ₹168.30 by just 0.18%.
Technical indicators present mixed signals: whilst weekly MACD, Bollinger Bands, moving averages, Dow Theory, and On-Balance Volume show bullish readings, RSI indicates bearish conditions on both weekly and monthly timeframes. The KST oscillator suggests mildly bearish momentum. This divergence between price momentum and momentum oscillators often precedes trend reversals.
Delivery volumes show interesting patterns, with one-day delivery change at 138.66% versus the five-day average, and one-month delivery change at 66.97%. Recent trading volume of 5,324 shares at a weighted average price of ₹168.15 reflects limited liquidity, typical for micro-cap stocks with minimal institutional participation.
Investment Thesis: Fundamental Weakness Overwhelms Price Momentum
Callista Industries presents a classic case of price-fundamental divergence. The company's proprietary Mojo score stands at 40 out of 100, firmly in "SELL" territory since September 2025. Quality assessment rates the company as "BELOW AVERAGE" since November 2025, reflecting weak long-term financial performance characterised by zero sales growth, negative EBIT growth of -19.89%, and severely negative ROCE.
The financial trend analysis shows a "FLAT" rating for Q3 FY26, though this understates the severity given accelerating losses. Key negative factors include PBDIT at its lowest level of ₹-0.63 crores and profit before tax less other income also at its lowest of ₹-0.63 crores. The valuation grade of "RISKY" appropriately captures the fundamental concerns, despite recent price appreciation.
Key Strengths
- Zero promoter pledging demonstrates confidence
- Minimal debt burden with negative net debt to equity
- Strong recent price momentum across timeframes
- Stable promoter holding at 47.56%
- Bullish technical trend since early February 2026
Critical Risk Factors
- Zero revenue generation across all reported quarters
- Negative networth of ₹0.78 crores and negative book value
- Accelerating quarterly losses (₹0.48 Cr in Q3 FY26)
- ROCE at severely negative 64.00%
- Complete absence of institutional investors
- No visible operational activities or business model
- Reserves and surplus at negative ₹3.82 crores
Outlook: Monitoring Points for Deteriorating Situation
Given the fundamental challenges, investors should monitor specific indicators that could signal either turnaround potential or further deterioration. The absence of any positive catalysts makes the outlook particularly concerning.
Positive Catalysts (Currently Absent)
- Any revenue generation or business resumption
- Capital infusion to address negative networth
- Strategic restructuring or business model pivot
- Reduction in quarterly losses below ₹0.10 crores
Red Flags to Monitor
- Continued zero revenue in subsequent quarters
- Further deterioration in networth below ₹-1.00 crore
- Quarterly losses exceeding ₹0.50 crores
- Any promoter stake reduction or pledging
- Delisting risk if fundamentals don't improve
The Verdict: Extreme Caution Warranted Despite Price Momentum
Score: 40/100
For Fresh Investors: Avoid entirely. The complete absence of revenue, negative networth, and accelerating losses present unacceptable risk. Recent price momentum appears speculative and unsustainable given fundamental deterioration. No credible path to profitability exists.
For Existing Holders: Consider immediate exit on current price strength. The 182% three-month gain provides a rare opportunity to exit before fundamentals reassert influence on valuation. Holding carries significant downside risk as operational crisis deepens.
Fair Value Estimate: Not calculable given negative networth and zero revenue. Current price of ₹168.00 appears significantly overvalued relative to fundamental reality.
Rationale: Callista Industries' Q3 FY26 results expose a company in severe operational distress with zero revenue generation, mounting losses, and negative networth. Whilst technical momentum remains bullish, the fundamental picture—characterised by a ROCE of -64.00%, book value of -₹2.55 per share, and accelerating quarterly losses—presents unacceptable investment risk. The complete absence of institutional investors and "RISKY" valuation grade underscore the fundamental concerns that current price momentum cannot sustainably overcome.
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. Investment in securities markets are subject to market risks, and investors should carefully evaluate all risk factors before investing.
