The stock, currently trading at ₹70.00, has plunged 40.63% over the past year, underperforming the Sensex by a staggering 50.35 percentage points. With negative book value of ₹-67.96 per share, mounting operational challenges, and a proprietary advisory score of just 17 out of 100, the company faces an existential crisis that warrants immediate investor attention.
The company's deteriorating financial position reflects a business model under severe strain. Formerly known as Vishal Electro-Mach (India) Ltd. and incorporated in 1986, Ind-Agiv Commerce operates in the trading of broadcast equipment and paints. However, the near-complete evaporation of revenue in the latest quarter suggests operational paralysis rather than temporary setbacks.
| Quarter | Net Sales (₹ Cr) | QoQ Change | Net Profit (₹ Cr) | QoQ Change | PAT Margin |
|---|---|---|---|---|---|
| Dec'25 (Q3) | 0.06 | -83.33% | -0.02 | -93.33% | -33.33% |
| Sep'25 (Q2) | 0.36 | -78.05% | -0.30 | +200.00% | -83.33% |
| Jun'25 (Q1) | 1.64 | +141.18% | -0.10 | -72.22% | -6.10% |
| Mar'25 (Q4) | 0.68 | -20.00% | -0.36 | -61.29% | -52.94% |
| Dec'24 (Q3) | 0.85 | -63.83% | -0.93 | +36.76% | -109.41% |
| Sep'24 (Q2) | 2.35 | 0.00% | -0.68 | -9.33% | -28.94% |
| Jun'24 (Q1) | 2.35 | — | -0.75 | — | -31.91% |
Financial Performance: Revenue Freefall Continues
The Q3 FY26 results paint a picture of accelerating business deterioration. Net sales of ₹0.06 crores represent an 83.33% sequential decline from Q2 FY26's already-weak ₹0.36 crores, and a catastrophic 92.94% year-on-year collapse from ₹0.85 crores in Q3 FY25. This marks the fourth consecutive quarter of sequential revenue decline, with sales having plummeted from ₹2.35 crores in Q1 FY25 to virtually nothing today.
Operating profit before depreciation, interest, tax, and other income (PBDIT excluding OI) stood at ₹-0.02 crores in Q3 FY26, yielding a deeply negative operating margin of -33.33%. Whilst this represents an improvement from Q2 FY26's horrific -136.11% margin, the absolute numbers reveal minimal business activity rather than genuine operational improvement. Employee costs of ₹0.06 crores in Q3 FY26 actually equalled total revenue, indicating the company is effectively burning cash to maintain a skeletal workforce.
The net loss of ₹0.02 crores in Q3 FY26, whilst smaller in absolute terms than previous quarters, reflects the near-complete cessation of business operations rather than a turnaround. Interest expenses have declined to negligible levels (₹0.00 crores in Q3 FY26 versus ₹0.45 crores in Q3 FY25), suggesting potential debt restructuring or defaults. The company's inability to generate meaningful revenue has resulted in persistent losses across all recent quarters.
Critical Warning: Business Viability in Question
With quarterly revenue of just ₹0.06 crores (₹6 lakhs) and negative shareholder equity of ₹-6.71 crores as of March 2025, Ind-Agiv Commerce faces severe solvency concerns. The company's negative book value indicates liabilities exceed assets, placing it in technical insolvency territory. Current operations appear insufficient to service existing obligations or fund a meaningful business turnaround.
Balance Sheet Distress: Negative Equity and Rising Liabilities
The company's balance sheet reveals fundamental structural problems that extend far beyond temporary operational challenges. As of March 2025, shareholder funds stood at ₹-6.71 crores, comprising share capital of ₹1.00 crore offset by accumulated losses (reserves and surplus) of ₹-7.71 crores. This negative equity position has deteriorated progressively from ₹-4.81 crores in March 2024 and ₹-1.65 crores in March 2023, reflecting sustained value destruction.
Long-term debt of ₹7.58 crores as of March 2025, combined with current liabilities of ₹15.01 crores, results in total liabilities of ₹22.59 crores against current assets of just ₹20.80 crores and fixed assets of ₹8.24 crores. Trade payables have increased to ₹7.56 crores from ₹7.09 crores year-on-year, indicating potential payment delays to suppliers. The company's debt-to-equity ratio, calculated on historical positive equity periods, averaged 2.75 times—a high leverage position that becomes meaningless in the context of current negative equity.
Return on equity (ROE) averaged 39.34% over the assessment period, but this metric loses relevance given the company's negative book value. The latest ROE calculation is marked as "Negative BV" in company disclosures, confirming the complete erosion of shareholder capital. Return on capital employed (ROCE) averaged just 10.55%, reflecting weak capital productivity even before the recent operational collapse.
| Balance Sheet Item | Mar'25 (₹ Cr) | Mar'24 (₹ Cr) | Mar'23 (₹ Cr) | Change YoY |
|---|---|---|---|---|
| Shareholder Funds | -6.71 | -4.81 | -1.65 | Worsening |
| Long-Term Debt | 7.58 | 8.27 | 8.17 | -8.34% |
| Current Liabilities | 15.01 | 17.51 | 12.96 | -14.28% |
| Fixed Assets | 8.24 | 8.24 | 0.06 | Flat |
| Current Assets | 20.80 | 23.86 | 28.40 | -12.82% |
Operational Collapse: The Trading Model Breakdown
Ind-Agiv Commerce's business model—trading broadcast equipment and paints—has effectively ceased to function. The company, which once represented "world renowned brands in Broadcast & Audio Visual Equipments," has seen its trading operations evaporate. Five-year sales growth stands at -24.38% annually, whilst EBIT growth has contracted at a catastrophic -183.43% annually, indicating accelerating operational deterioration.
The average EBIT-to-interest coverage ratio of just 0.17 times reveals the company's inability to service debt from operating profits. This weak coverage, combined with persistent negative operating margins, suggests the business model is fundamentally broken rather than experiencing cyclical weakness. Sales to capital employed averaged -0.35 times, an unusual negative figure reflecting the company's negative equity position and inefficient asset utilisation.
Employee costs have declined from ₹0.57 crores in Q2 and Q1 FY25 to ₹0.06 crores in Q3 FY26, suggesting significant workforce reductions. However, even this skeletal cost structure cannot be supported by current revenue levels. The company's tax ratio of just 1.68% reflects minimal profitability over the assessment period, with no taxes paid in recent loss-making years.
Peer Comparison: Industry Laggard Status Confirmed
Comparing Ind-Agiv Commerce to peers within the Trading & Distributors sector highlights the company's outlier status. Whilst peer companies maintain positive price-to-book ratios averaging around 1.0 times and demonstrate positive profitability, Ind-Agiv Commerce stands alone with a negative book value resulting in a price-to-book ratio of -3.01 times.
| Company | P/E (TTM) | ROE (%) | Debt to Equity | Price to Book |
|---|---|---|---|---|
| Ind-Agiv Commerce | NA (Loss Making) | 39.34% | 0.04 | -3.01 |
| Mah. Corporation | 221.82 | 0.63% | 0.00 | 0.38 |
| LWS Knitwear | 9.09 | 6.17% | 0.55 | 0.75 |
| Lesha Industries | 54.87 | 1.92% | -0.01 | 0.31 |
| Neelkanth | 30.81 | 4.44% | 0.02 | 2.38 |
The company's historical average ROE of 39.34% appears strong on paper but is rendered meaningless by current negative book value. Peer companies maintain modest but positive ROE levels between 0.63% and 6.17%, reflecting sustainable if unspectacular profitability. Ind-Agiv Commerce's market capitalisation of ₹21.00 crores ranks it sixth (last) among the peer group, reflecting investor scepticism about recovery prospects.
Valuation Analysis: Risky Classification Justified
Ind-Agiv Commerce carries a "RISKY" valuation classification, a designation that understates the severity of challenges facing the company. With a P/E ratio marked as "NA (Loss Making)" due to persistent losses, traditional valuation metrics offer little guidance. The price-to-book ratio of -3.01 times indicates the market values the company at approximately three times its negative book value—effectively pricing in significant recovery hopes or liquidation value speculation.
The company's EV/EBITDA multiple of -21.13 times reflects negative EBITDA, whilst EV/Sales of 7.71 times appears elevated relative to the minimal revenue base. These distorted multiples underscore the difficulty in valuing a company with negative equity and near-zero operations. The stock trades at ₹70.00, down 40.70% from its 52-week high of ₹118.05 but only 1.63% above its 52-week low of ₹68.88, suggesting limited downside buffer.
The valuation grade history shows the company oscillating between "Risky" and "Does Not Qualify" classifications since June 2024, with the current "Risky" designation in place since July 2024. This persistent low-quality classification reflects fundamental concerns about financial viability rather than temporary market mispricing.
Shareholding Pattern: Promoter Stake Reduction Raises Concerns
A dramatic shift in shareholding pattern occurred in August 2025, when promoter holding plunged from 72.21% to 28.69%—a massive 43.52 percentage point reduction in a single quarter. This stake reduction, which saw non-institutional holdings surge from 27.79% to 71.31%, raises serious questions about promoter confidence and potential distress sales.
| Quarter | Promoter % | QoQ Change | FII % | Mutual Fund % | Non-Institutional % |
|---|---|---|---|---|---|
| Oct'25 | 28.69% | 0.00% | 0.00% | 0.00% | 71.31% |
| Sep'25 | 28.69% | 0.00% | 0.00% | 0.00% | 71.31% |
| Aug'25 | 28.69% | -43.52% | 0.00% | 0.00% | 71.31% |
| Jun'25 | 72.21% | 0.00% | 0.00% | 0.00% | 27.79% |
| Mar'25 | 72.21% | — | 0.00% | 0.00% | 27.79% |
The current promoter holding of 28.69% has remained stable since August 2025, suggesting the stake reduction was a one-time event rather than ongoing dilution. However, the absence of any institutional investors—zero FII holdings, zero mutual fund participation, and zero insurance company interest—reflects complete institutional abandonment. The 71.31% non-institutional holding indicates the stock trades primarily amongst retail and non-professional investors.
Key promoters include Sushila Rupani (18.06%), Subhash Chander Oberoi (8.27%), and Ranjan Chona (2.36%). Positively, there is no promoter pledging of shares, eliminating one potential source of distress selling. However, the dramatic reduction in promoter stake from over 72% to under 29% represents a significant vote of no-confidence from those closest to the business.
Stock Performance: Severe Underperformance Across All Timeframes
Ind-Agiv Commerce's stock performance reflects investor recognition of the company's deteriorating fundamentals. The stock has declined 40.63% over the past year, underperforming the Sensex (which gained 9.72%) by a massive 50.35 percentage points. This severe underperformance extends across multiple timeframes, with the stock down 24.59% over six months versus a Sensex gain of 3.46%, representing negative alpha of 28.05 percentage points.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Month | 0.52% | -0.22% | +0.74% |
| 3 Months | -11.82% | -1.84% | -9.98% |
| 6 Months | -24.59% | 3.46% | -28.05% |
| YTD | -4.06% | -2.15% | -1.91% |
| 1 Year | -40.63% | 9.72% | -50.35% |
| 3 Years | 63.17% | 36.69% | +26.48% |
| 5 Years | 115.72% | 61.28% | +54.44% |
Interestingly, longer-term returns paint a different picture. The stock has delivered 63.17% returns over three years (versus Sensex's 36.69%) and 115.72% over five years (versus Sensex's 61.28%), suggesting historical outperformance before the recent collapse. However, these historical gains provide little comfort given current operational paralysis and balance sheet distress.
The stock's beta of 1.50 indicates high volatility relative to the market, with annualised volatility of 57.35% marking it as a high-risk investment. The risk-adjusted return over one year stands at -0.71, confirming this is a "HIGH RISK LOW RETURN" proposition. The stock currently trades below all major moving averages—5-day (₹70.00), 20-day (₹73.66), 50-day (₹80.43), and 100-day (₹88.67)—reflecting sustained selling pressure.
Technical Analysis: Mildly Bearish Trend with Limited Support
The technical picture for Ind-Agiv Commerce remains decidedly negative. The stock trades in a "MILDLY BEARISH" trend as of February 12, 2026, having transitioned from "Bearish" just days earlier. This technical classification reflects ongoing weakness, with the stock trading at ₹70.00 just marginally above its 52-week low of ₹68.88.
Key technical indicators present a uniformly negative outlook. MACD signals remain "Bearish" on weekly charts and "Mildly Bearish" on monthly charts, indicating downward momentum. Bollinger Bands show "Mildly Bearish" readings across both weekly and monthly timeframes, suggesting the stock trades near the lower band with limited buying interest. Moving averages display a "Bearish" signal, confirming the stock trades below key support levels.
Immediate support lies at the 52-week low of ₹68.88, representing just 1.63% downside from current levels. Immediate resistance emerges at the 20-day moving average of ₹73.66, followed by the 50-day moving average at ₹80.43. The stock would need to reclaim these moving averages to signal any technical improvement. Delivery volumes have increased 31.05% over the past month, with recent sessions showing 100% delivery-based trading—indicating genuine buying/selling rather than speculative activity, though volumes remain minimal in absolute terms.
Quality Assessment: Below Average Grade Reflects Fundamental Weakness
Ind-Agiv Commerce carries a "BELOW AVERAGE" quality grade, a classification it has maintained since November 2025 after previously being marked "Does Not Qualify" prior to July 2024. This quality assessment reflects systematic weaknesses across multiple financial parameters that extend beyond temporary cyclical challenges.
The five-year sales growth of -24.38% and five-year EBIT growth of -183.43% demonstrate sustained value destruction rather than short-term setbacks. The average EBIT-to-interest coverage of just 0.17 times confirms the company cannot service debt from operating profits. Average sales to capital employed of -0.35 times reflects the company's negative equity position and capital inefficiency.
Two positive factors emerge from the quality assessment: the company maintains zero promoter pledging, eliminating one source of governance concern, and demonstrates a strong historical average ROE of 39.34% (though this metric loses relevance given current negative book value). However, these limited positives are overwhelmed by fundamental operational and financial weaknesses that justify the below-average quality classification.
KEY STRENGTHS
- Zero promoter pledging reduces governance risk
- Minimal interest burden in recent quarters (₹0.00 Cr Q3 FY26)
- Historical average ROE of 39.34% (though now negative)
- Low institutional holding means minimal forced selling pressure
- Stock trading near 52-week lows limits further downside
KEY CONCERNS
- Revenue collapsed 92.94% YoY to just ₹0.06 crores in Q3 FY26
- Negative shareholder equity of ₹-6.71 crores (technical insolvency)
- Book value per share at ₹-67.96 reflects complete capital erosion
- Promoter stake reduced dramatically from 72.21% to 28.69%
- Zero institutional investor participation signals abandonment
- Persistent losses across all recent quarters
- Five-year sales growth of -24.38% shows structural decline
- Operating margins deeply negative at -33.33% in Q3 FY26
- Current operations insufficient to service existing obligations
- High beta of 1.50 with volatility of 57.35% increases risk
Outlook: Monitoring Points for Potential Stabilisation
Given Ind-Agiv Commerce's precarious financial position, investors should monitor specific indicators that could signal either stabilisation or further deterioration. The company faces an existential challenge requiring dramatic operational improvement or strategic alternatives to survive.
POSITIVE CATALYSTS
- Meaningful revenue recovery above ₹1 crore quarterly
- Return to positive operating margins
- Debt restructuring or liability reduction
- New business partnerships or product lines
- Promoter stake increase signalling confidence
- Institutional investor participation
RED FLAGS
- Further revenue decline below ₹0.06 crores quarterly
- Additional promoter stake reduction
- Debt default or restructuring announcements
- Regulatory actions or delisting threats
- Further deterioration in shareholder equity
- Management changes or resignations
- Qualified audit opinions or going concern warnings
The Verdict: Avoid This Distressed Situation
Score: 17/100
For Fresh Investors: Avoid completely. With negative book value of ₹-67.96 per share, quarterly revenue of just ₹0.06 crores, and persistent operational losses, Ind-Agiv Commerce faces severe solvency concerns that make it unsuitable for investment. The dramatic 43.52 percentage point reduction in promoter stake and complete absence of institutional investors underscore fundamental viability concerns.
For Existing Holders: Exit at the earliest opportunity. The company's negative shareholder equity of ₹-6.71 crores places it in technical insolvency territory, whilst the 92.94% year-on-year revenue collapse suggests operational paralysis rather than temporary weakness. The stock's 40.63% decline over the past year reflects justified investor concerns about business continuity.
Fair Value Estimate: Not applicable. Traditional valuation methods cannot be applied to a company with negative book value and minimal operations. Any recovery scenario would require dramatic operational turnaround or strategic restructuring that appears unlikely given current trajectory. Risk of further value erosion remains high.
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 analysis presented reflects conditions as of February 17, 2026, and circumstances may change materially. Given the company's negative book value and operational challenges, this investment carries exceptionally high risk including potential total loss of capital.
