The December 2025 quarter represents a stark departure from the company's recent operational pattern, with net sales jumping from ₹0.08 crores in Q2 FY26 to ₹1.06 crores. This explosive growth, whilst impressive on paper, raises questions about the underlying business model's consistency, particularly for a company that has exhibited negative sales in previous quarters. The operating profit margin of 83.96% appears exceptionally high for an NBFC, suggesting either a highly efficient operation or potential irregularities in the revenue recognition pattern.
Financial Performance: Volatility Defines the Narrative
Integra Capital's quarterly performance has been characterised by extreme volatility, with sales oscillating between negative ₹0.29 crores in December 2024 to positive ₹1.06 crores in December 2025. The year-on-year comparison reveals a concerning trend, with Q3 FY26 sales declining 465.52% compared to Q3 FY25, though the negative base effect makes this comparison somewhat misleading. The sequential quarter-on-quarter growth of 1225.00% from Q2 FY26 represents an unprecedented surge that warrants careful scrutiny.
| Quarter | Net Sales (₹ Cr) | QoQ Change | Net Profit (₹ Cr) | QoQ Change | PAT Margin |
|---|---|---|---|---|---|
| Dec'25 | 1.06 | +1225.00% | 0.65 | +828.57% | 61.32% |
| Sep'25 | 0.08 | -82.22% | 0.07 | +77.42% | 87.50% |
| Jun'25 | 0.45 | -295.65% | 0.31 | +520.00% | 68.89% |
| Mar'25 | -0.23 | -20.69% | 0.05 | +116.67% | -21.74% |
| Dec'24 | -0.29 | -182.86% | -0.30 | -230.43% | 103.45% |
| Sep'24 | 0.35 | -23.91% | 0.23 | -11.54% | 65.71% |
| Jun'24 | 0.46 | — | 0.26 | — | 56.52% |
The profit before tax stood at ₹0.89 crores in Q3 FY26, up from ₹0.03 crores in the previous quarter, whilst the tax rate normalised to 26.97% from an anomalous negative 133.33% in Q2 FY26. The operating profit margin excluding other income jumped dramatically to 83.96% from 37.50% in Q2 FY26, indicating either exceptional operational efficiency or a revenue composition shift that requires deeper investigation. Employee costs remained minimal at ₹0.07 crores, suggesting a lean organisational structure typical of micro-cap financial services firms.
Revenue Pattern Raises Questions
The company's revenue trajectory shows extreme quarterly fluctuations, including negative sales figures in Q4 FY25 and Q3 FY25. This pattern is highly unusual for a financial services company and suggests either project-based revenue recognition, reversals, or accounting adjustments that make trend analysis challenging. Investors should seek clarity on the underlying business model and revenue recognition policies.
Balance Sheet: Minimal Leverage but Limited Scale
Integra Capital's balance sheet as of March 2025 reveals a shareholder equity base of ₹5.02 crores, comprising share capital of ₹4.85 crores and reserves of ₹0.17 crores. The company operates with zero long-term debt, which eliminates financial leverage risks but also constrains growth potential in the capital-intensive NBFC sector. Current assets stood at ₹3.01 crores against current liabilities of ₹0.22 crores, providing a comfortable current ratio of approximately 13.7x, indicating strong short-term liquidity.
The fixed asset base remains negligible at ₹0.01 crores, reflecting a business model that requires minimal physical infrastructure. The company holds no investments on its books, focusing entirely on its core lending or financial services operations. The reserves and surplus improved from negative ₹0.06 crores in March 2024 to positive ₹0.17 crores in March 2025, demonstrating a turnaround in accumulated profitability, though the absolute scale remains extremely modest.
Profitability Metrics: High Returns on Tiny Base
The company's return on equity (ROE) for the latest period stands at 15.54%, which appears attractive on the surface and compares favourably to the average ROE of 10.66% over recent periods. However, this metric must be contextualised against the minuscule equity base of ₹5.02 crores. The return on capital employed (ROCE) of 0.85% appears surprisingly low relative to the ROE, suggesting that the company's capital structure and working capital dynamics create a disconnect between these two profitability measures.
Profitability Context
Whilst the 15.54% ROE appears respectable, investors must recognise that this return is generated on an equity base of just ₹5.02 crores. The absolute profit of ₹0.65 crores in Q3 FY26 translates to an annualised profit run-rate of ₹2.60 crores, which remains extremely modest in absolute terms. The company's micro-cap status and limited operational scale present significant scalability challenges.
Peer Comparison: Integra's Position in the Micro-NBFC Universe
Within the non-banking financial company sector, Integra Capital occupies the micro-cap segment alongside peers such as GCM Capital, Brijlaxmi Leasing, and Polytex India. The peer comparison reveals interesting dynamics in valuation and profitability metrics, though the extremely small scale of these companies makes meaningful comparisons challenging.
| Company | P/E (TTM) | Price/Book | ROE (%) | Debt/Equity |
|---|---|---|---|---|
| Integra Capital | 8.98 | 1.40 | 10.66 | 0.00 |
| GCM Capital | NA (Loss Making) | 0.28 | 0.58 | 0.00 |
| Brijlaxmi Leasing | 1.85 | 1.31 | 9.94 | 2.21 |
| Polytex India | 14.24 | 2.93 | 0.00 | 0.09 |
Integra Capital's P/E ratio of 8.98x appears reasonable compared to Polytex India's 14.24x, though Brijlaxmi Leasing trades at an exceptionally low 1.85x earnings. The company's ROE of 10.66% ranks among the highest in this peer group, with only Brijlaxmi Leasing coming close at 9.94%. The price-to-book ratio of 1.40x suggests the market values the company at a moderate premium to its book value, lower than Polytex India's 2.93x but higher than GCM Capital's deeply discounted 0.28x.
Valuation Analysis: "Very Expensive" Grade Despite Low Multiples
Despite the seemingly modest P/E ratio of 8.98x, the company carries a "Very Expensive" valuation grade, which reflects concerns beyond simple multiple analysis. The price-to-book ratio of 1.40x appears reasonable for a financial services company generating mid-teen ROEs, but the valuation assessment factors in the erratic revenue pattern, micro-cap illiquidity, and sustainability concerns around the recent profit surge.
The stock currently trades at ₹14.90, approximately 15.58% below its 52-week high of ₹17.65 and 24.06% above its 52-week low of ₹12.01. The valuation grade has fluctuated significantly over the past year, moving from "Attractive" to "Fair" to "Very Expensive" multiple times, reflecting the company's volatile operational performance and the market's difficulty in establishing a stable valuation framework.
| Metric | Current Value | Assessment |
|---|---|---|
| P/E Ratio (TTM) | 8.98x | Below sector average of 22x |
| Price/Book Value | 1.40x | Moderate premium to book |
| EV/EBITDA | 6.47x | Appears reasonable |
| PEG Ratio | 0.07x | Suggests undervaluation if growth sustainable |
Shareholding Pattern: Stable Promoter Base, Zero Institutional Interest
The shareholding structure of Integra Capital has remained remarkably stable, with promoter holding locked at 50.01% across all recent quarters. The promoter group, led by Tarun Vohra (30.65%), S K Vohra & Sons HUF (15.42%), and Pankaj Vohra (3.95%), maintains majority control without any pledging of shares, which provides governance comfort.
| Shareholder Category | Dec'25 | Sep'25 | Jun'25 | Mar'25 |
|---|---|---|---|---|
| Promoter Holding | 50.01% | 50.01% | 50.01% | 50.01% |
| FII Holding | 0.00% | 0.00% | 0.00% | 0.00% |
| Mutual Fund Holding | 0.00% | 0.00% | 0.00% | 0.00% |
| Insurance Holdings | 0.00% | 0.00% | 0.00% | 0.00% |
| Non-Institutional | 49.99% | 49.99% | 49.99% | 49.99% |
However, the complete absence of institutional investors—zero holdings from FIIs, mutual funds, insurance companies, and other DIIs—represents a significant red flag. This institutional void suggests that professional fund managers have not found the company's business model, scale, or governance practices attractive enough to warrant investment. The non-institutional holding of 49.99% comprises entirely retail investors, which contributes to the stock's illiquidity and volatility.
Stock Performance: Chronic Underperformance Across Timeframes
Integra Capital's stock performance has been disappointing across virtually all timeframes, with the shares declining 4.43% over the past year whilst the Sensex gained 9.81%, resulting in a negative alpha of 14.24 percentage points. The underperformance becomes more pronounced over longer periods, with the stock falling 34.22% over three years compared to the Sensex's 36.80% gain, translating to a massive 71.02 percentage point alpha deficit.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | -0.67% | -0.98% | +0.31% |
| 1 Month | 1.71% | -0.14% | +1.85% |
| 3 Months | 10.37% | -1.77% | +12.14% |
| 6 Months | -3.87% | 3.54% | -7.41% |
| 1 Year | -4.43% | 9.81% | -14.24% |
| 3 Years | -34.22% | 36.80% | -71.02% |
| 10 Years | -13.87% | 256.90% | -270.77% |
The stock has also massively underperformed its NBFC sector peers, with the sector gaining 26.53% over the past year whilst Integra declined 4.43%, creating a 30.96 percentage point underperformance. The recent three-month performance shows a positive 10.37% return, outperforming the Sensex by 12.14 percentage points, but this appears more attributable to the low base effect following prior declines rather than a sustainable turnaround in business fundamentals.
The stock exhibits high volatility of 64.41% compared to the Sensex's 11.57%, with a beta of 1.50, indicating significantly higher risk than the broader market. The risk-adjusted return of -0.07 and negative Sharpe ratio classify this as a "high risk, low return" investment, an unfavourable combination for most investors. The technical trend recently shifted to "Mildly Bullish" on February 11, 2026, though this follows a pattern of frequent trend changes that have not translated into sustained price appreciation.
Quality Assessment: Below Average Fundamentals
Integra Capital carries a "Below Average" quality grade, reflecting long-term financial performance that fails to meet institutional investment standards. The company's 5-year sales growth of 8.88% and EBIT growth of 9.30% appear modest, though these figures must be interpreted cautiously given the erratic quarterly revenue pattern and negative sales figures in some periods.
Key Strengths
- Zero Debt Structure: Complete absence of long-term debt eliminates financial risk and interest burden
- Strong Liquidity: Current ratio of 13.7x provides robust short-term financial flexibility
- Stable Promoter Holding: 50.01% promoter stake with no pledging demonstrates commitment
- Positive Financial Trend: Recent quarters show improving profitability trajectory
- High Operating Margins: Q3 FY26 operating margin of 83.96% indicates operational efficiency
- Lean Cost Structure: Minimal employee and fixed costs enable flexibility
Key Concerns
- Extreme Revenue Volatility: Quarterly sales oscillating between negative and positive figures raises sustainability concerns
- Micro-Cap Illiquidity: ₹7.00 crore market cap creates severe liquidity constraints
- Zero Institutional Interest: Complete absence of FII, MF, and insurance holdings signals quality concerns
- Chronic Underperformance: Negative alpha across all meaningful timeframes
- Limited Scale: Absolute profit of ₹0.65 crores quarterly constrains growth potential
- High Volatility: 64.41% volatility with 1.50 beta creates excessive risk
- Unclear Business Model: Erratic revenue pattern makes business sustainability difficult to assess
Outlook: What to Monitor
Positive Catalysts
- Sustained revenue generation above ₹0.50 crores for three consecutive quarters
- Entry of institutional investors (MF or insurance companies)
- Disclosure of clear business model and revenue recognition policy
- Expansion of equity base to support growth
- Consistent positive quarterly profits demonstrating operational stability
Red Flags to Watch
- Return to negative revenue figures in any quarter
- Sharp decline in operating margins from Q3 FY26 levels
- Further decline in stock price below ₹12.01 (52-week low)
- Any promoter stake reduction or pledging activity
- Continued absence of institutional buying despite improved results
The Verdict: High Risk with Questionable Reward
Score: 43/100
For Fresh Investors: Avoid initiation. The micro-cap nature, erratic revenue pattern, zero institutional interest, and chronic underperformance create an unfavourable risk-reward profile. The recent profit surge appears unsustainable without evidence of consistent operational performance over multiple quarters.
For Existing Holders: Consider exiting on any price strength. Whilst Q3 results show improvement, the fundamental concerns around business model clarity, scalability, and market acceptance remain unaddressed. The 64.41% volatility and negative long-term alpha suggest capital would be better deployed elsewhere.
Fair Value Estimate: ₹12.50 (16.11% downside from current price of ₹14.90)
Rationale: The SELL rating reflects the combination of extreme operational volatility, micro-cap illiquidity constraints, complete institutional avoidance, and chronic underperformance across all meaningful timeframes. Whilst the company operates debt-free with adequate liquidity, these positives are overwhelmed by concerns about revenue sustainability, limited scale, and the absence of a clear path to consistent profitability. The "Very Expensive" valuation grade despite low multiples indicates the market recognises fundamental quality issues beyond simple P/E analysis.
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. Investments in micro-cap stocks carry substantially higher risks including illiquidity, volatility, and potential loss of capital.
