The stock closed at ₹29.56 on February 12, 2026, up 4.97% on the day, though it remains deeply in negative territory with a one-year decline of 56.11% and trading 57.16% below its 52-week high of ₹69.00. With minimal institutional participation—zero holdings from foreign institutional investors, mutual funds, and insurance companies—and promoter holding at just 2.23%, the company faces significant challenges in regaining investor confidence.
Financial Performance: A Quarter of Zero Activity
The Q3 FY26 results represent a complete operational cessation for Integrated Proteins. Net sales collapsed to zero from ₹4.20 crores in Q2 FY26, marking a 100% quarter-on-quarter decline. This is particularly alarming given that Q2 FY26 had shown signs of operational activity after multiple quarters of dormancy. On a year-on-year basis, the comparison is equally stark—Q3 FY25 had recorded negligible sales of ₹0.01 crores, indicating the company has struggled with consistent operations for several quarters.
The company reported a net loss of ₹0.02 crores in Q3 FY26, compared to a profit of ₹0.05 crores in the previous quarter. Operating profit before depreciation, interest, and tax (PBDIT) excluding other income stood at -₹0.02 crores, with no meaningful margin calculation possible given zero revenue. Employee costs remained minimal at ₹0.01 crores, consistent with previous quarters, suggesting a skeletal workforce.
| Quarter | Net Sales (₹ Cr) | QoQ Change | Net Profit (₹ Cr) | QoQ Change |
|---|---|---|---|---|
| Dec'25 (Q3 FY26) | 0.00 | -100.00% | -0.02 | Loss |
| Sep'25 (Q2 FY26) | 4.20 | — | 0.05 | — |
| Jun'25 (Q1 FY26) | 0.00 | -100.00% | 0.00 | — |
| Mar'25 (Q4 FY25) | 21.49 | +214,800% | 0.21 | — |
| Dec'24 (Q3 FY25) | 0.01 | — | 0.07 | — |
| Sep'24 (Q2 FY25) | 0.00 | — | -0.03 | — |
The sporadic revenue pattern reveals deep operational instability. Q4 FY25 saw a sudden spike to ₹21.49 crores—representing 214,800% quarter-on-quarter growth—before collapsing again in Q1 FY26. This erratic performance suggests the company may be operating on a project-by-project basis rather than maintaining continuous production, a highly unusual situation for an edible oil processor that typically requires steady raw material procurement and processing cycles.
⚠️ Critical Operational Concern
The complete absence of revenue in Q3 FY26, following a brief operational period in Q2 FY26, raises serious questions about the company's business continuity. With zero sales, the firm is unable to cover even minimal fixed costs, leading to losses despite negligible employee expenses. This pattern of intermittent activity suggests potential challenges in raw material sourcing, customer relationships, or working capital management.
Balance Sheet Dynamics: Unusual Asset Surge
The balance sheet as of March 2025 reveals peculiar developments. Shareholder funds surged to ₹20.12 crores from ₹2.61 crores in the previous year, driven by a significant improvement in reserves and surplus from -₹0.91 crores to -₹0.66 crores. More notably, current assets ballooned to ₹32.32 crores from just ₹0.10 crores, an extraordinary increase that warrants scrutiny given the company's minimal operational activity.
Trade payables jumped dramatically to ₹8.00 crores from ₹0.01 crores, suggesting the company may have undertaken significant procurement or contracted obligations during FY25. Current liabilities overall stood at ₹12.25 crores, up from ₹0.08 crores. The company maintains negligible debt—long-term debt stood at zero as of March 2025—which is positive from a solvency perspective but raises questions about the firm's ability to fund any meaningful operational restart.
Return on equity (ROE) averaged a weak 1.51% over the measurement period, indicating extremely poor capital efficiency. This is particularly concerning given the recent surge in shareholder funds to ₹20.12 crores. The company's average return on capital employed (ROCE) was negative at -5.14%, highlighting value destruction rather than creation. These metrics place Integrated Proteins among the weakest performers in capital utilisation, a fundamental concern for any potential investor.
The Edible Oil Sector Context: Swimming Against the Tide
The broader edible oil sector has delivered robust returns of 107.92% over the past year, making Integrated Proteins' 56.11% decline particularly stark. The company has underperformed its sector by 164.03 percentage points, the widest gap among meaningful metrics. This divergence suggests company-specific issues rather than sector headwinds, as peers have capitalised on favourable industry dynamics including stable demand and improving margins.
The edible oil processing business typically benefits from consistent demand given the essential nature of the product, with players able to pass through raw material cost fluctuations to customers. However, Integrated Proteins appears unable to leverage these sector tailwinds, instead facing operational paralysis that prevents it from participating in the market at all. The company's business model—processing various oilseeds for both domestic refined oil sales and export of de-oiled cake for animal feed—requires scale and consistency to achieve profitability, neither of which are currently evident.
Sector Positioning Weakness
With a market capitalisation of just ₹55.00 crores and sporadic operations, Integrated Proteins lacks the scale and financial resources to compete effectively in the edible oil processing industry. Larger, integrated players benefit from economies of scale in procurement, processing, and distribution—advantages entirely unavailable to a company operating intermittently with zero institutional backing.
Peer Comparison: Bottom of the Barrel
A comparison with edible oil sector peers reveals Integrated Proteins' significant disadvantages across key metrics. The company trades at an elevated P/E ratio of 167.63x based on trailing twelve-month earnings, substantially higher than peers like Raj Oil Mills (12.36x) and Diligent Industries (23.47x). This premium valuation appears entirely unjustified given the operational challenges and weak fundamentals.
| Company | P/E (TTM) | P/BV | ROE (%) | Debt/Equity |
|---|---|---|---|---|
| Integ. Proteins | 167.63 | 2.72 | 1.51 | 0.00 |
| Raj Oil Mills | 12.36 | 67.60 | 0.00 | 29.68 |
| Ambo Agritec | 33.56 | — | — | — |
| Diligent Indust. | 23.47 | 0.94 | 8.42 | 0.55 |
The company's ROE of 1.51% trails significantly behind Diligent Industries' 8.42%, highlighting inferior profitability and capital efficiency. While Integrated Proteins maintains zero debt—a positive from a solvency standpoint—this advantage is overshadowed by its inability to generate consistent revenue or meaningful returns. The price-to-book ratio of 2.72x appears elevated given the quality concerns, though it is substantially lower than Raj Oil Mills' 67.60x.
Valuation Analysis: Expensive for All the Wrong Reasons
At a P/E ratio of 167.63x, Integrated Proteins trades at a significant premium to the industry average P/E of 34x. This valuation appears entirely disconnected from fundamentals, likely reflecting the low base of earnings rather than any growth prospects or quality attributes. The company's EV/EBITDA multiple of 55.32x and EV/Sales ratio of 2.15x are similarly elevated, offering no margin of safety for investors.
The stock's price-to-book value of 2.72x suggests the market is valuing the company above its net asset value, despite weak operational performance and negligible earnings power. This premium appears unjustified given the below-average quality grade, flat financial trend, and bearish technical indicators. The valuation grade has deteriorated from "Very Attractive" in October 2025 to "Fair" currently, though even this assessment appears generous given recent operational developments.
Shareholding: Promoter Exodus Signals Trouble
The shareholding pattern reveals deeply concerning trends. Promoter holding collapsed to 2.23% in December 2025 from 13.04% in September 2025, representing a dramatic 10.81 percentage point reduction in a single quarter. This substantial promoter selling during a period of operational difficulty sends a strong negative signal about management's confidence in the business's prospects.
| Quarter | Promoter % | QoQ Change | FII % | MF % | Non-Inst % |
|---|---|---|---|---|---|
| Dec'25 | 2.23 | -10.81 | 0.00 | 0.00 | 97.77 |
| Sep'25 | 13.04 | +10.81 | 0.00 | 0.00 | 86.96 |
| Aug'25 | 2.23 | -10.81 | 0.00 | 0.00 | 97.77 |
| Jun'25 | 13.04 | 0.00 | 0.00 | 0.00 | 86.96 |
The pattern shows extreme volatility, with promoter holding swinging between 2.23% and 13.04% across recent quarters. Non-institutional holdings now stand at 97.77%, indicating the stock is held almost entirely by retail investors with no participation from foreign institutional investors, mutual funds, or insurance companies. This absence of institutional interest reflects the company's micro-cap status, operational inconsistency, and lack of investability from a quality perspective.
Stock Performance: Severe Wealth Destruction
The stock's performance across timeframes paints a picture of significant wealth destruction for recent investors. Over the past year, Integrated Proteins has declined 56.11% whilst the Sensex gained 9.85%, resulting in a negative alpha of 65.96 percentage points. The three-month return of -22.72% and six-month return of -37.11% indicate accelerating downward momentum.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | +5.20% | +0.43% | +4.77% |
| 1 Month | -9.16% | -0.24% | -8.92% |
| 3 Month | -22.72% | -0.94% | -21.78% |
| 6 Month | -37.11% | +4.29% | -41.40% |
| YTD | -14.07% | -1.81% | -12.26% |
| 1 Year | -56.11% | +9.85% | -65.96% |
| 2 Years | +78.83% | +17.73% | +61.10% |
| 3 Years | +124.28% | +37.89% | +86.39% |
Interestingly, longer-term returns show significant outperformance—the stock has gained 78.83% over two years and 124.28% over three years, substantially ahead of the Sensex. However, this historical outperformance appears to be eroding rapidly, with the stock currently trading below all key moving averages including the 5-day (₹27.69), 20-day (₹31.26), 50-day (₹31.97), and 100-day (₹36.35) averages. The technical trend is firmly bearish, having changed to bearish from mildly bearish on February 6, 2026.
With a beta of 1.50, the stock exhibits high volatility relative to the market, amplifying both gains and losses. The current volatility of 63.79% places it in the "high risk, low return" category, with a negative risk-adjusted return of -0.88 over the past year. This risk profile is entirely unsuitable for conservative investors and questionable even for aggressive growth-oriented portfolios given the fundamental deterioration.
Investment Thesis: Multiple Red Flags Converge
The investment thesis for Integrated Proteins is severely compromised across all key parameters. The company's quality grade stands at "Below Average," reflecting weak long-term financial performance with an average ROE of just 1.51%. The financial trend is classified as "Flat" for Q3 FY26, though this understates the severity given zero revenue generation. Technical indicators are uniformly bearish, with MACD, RSI, Bollinger Bands, and moving averages all pointing to continued weakness.
The valuation, whilst graded as "Fair" by the proprietary assessment, appears expensive in absolute terms with a P/E ratio of 167.63x offering no margin of safety. The overall Mojo Score of 16 out of 100 places the stock firmly in "Strong Sell" territory, with the recommendation being to "strongly consider selling" or "exit recommended" for existing holders. This score has remained at 26 since August 2025, consistently signalling caution.
✅ KEY STRENGTHS
- Zero Debt: Company maintains negligible borrowings, avoiding interest burden
- No Promoter Pledging: Zero pledged shares indicates no immediate financial stress
- Long-term Track Record: Three-year returns of 124.28% show historical performance capability
- Asset Base: Current assets of ₹32.32 crores provide some balance sheet cushion
- Low Fixed Costs: Minimal employee costs limit cash burn during inactive periods
⚠️ KEY CONCERNS
- Zero Revenue: Complete operational shutdown in Q3 FY26 with no sales
- Promoter Selling: Dramatic reduction in promoter holding from 13.04% to 2.23%
- Sporadic Operations: Erratic revenue pattern suggests business continuity issues
- Weak ROE: Average return on equity of 1.51% indicates poor capital efficiency
- No Institutional Support: Zero holdings from FIIs, MFs, and insurance companies
- Expensive Valuation: P/E of 167.63x unjustified by fundamentals or growth
- Bearish Technicals: Stock below all moving averages with bearish indicators
Outlook: What to Watch
For investors monitoring Integrated Proteins, several key factors will determine whether the company can stabilise operations or faces continued deterioration. On the positive side, any resumption of revenue generation in Q4 FY26 would signal operational restart, whilst management commentary on the reasons for Q3's shutdown would provide crucial context. Stabilisation or increase in promoter holding would indicate renewed confidence, and any cost restructuring initiatives could improve the loss-making position.
POSITIVE CATALYSTS
- Revenue resumption in Q4 FY26
- Management explanation for operational shutdown
- Stabilisation of promoter holding
- Working capital normalisation
- Cost reduction initiatives
🚩 RED FLAGS
- Continued zero or minimal revenue in Q4 FY26
- Further reduction in promoter holding
- Inability to explain operational gaps
- Deterioration in working capital position
- Breach of 52-week low at ₹20.71
- Any debt accumulation or financial stress
The red flags, however, are more numerous and severe. Continued zero or minimal revenue in Q4 FY26 would confirm structural operational problems rather than temporary disruption. Further reduction in promoter holding would eliminate any remaining management alignment with minority shareholders. The stock's proximity to its 52-week low of ₹20.71 means limited downside cushion remains, whilst any accumulation of debt or deterioration in working capital would signal escalating financial stress.
The Verdict: Avoid This Operational Quagmire
Score: 16/100
For Fresh Investors: Completely avoid this investment. With zero revenue generation, promoter selling, and no institutional backing, Integrated Proteins offers no credible path to value creation. The 167.63x P/E ratio is absurdly expensive for a company that cannot generate consistent sales, let alone sustainable profits.
For Existing Holders: Consider exiting at current levels despite the 56.11% one-year decline. The operational shutdown in Q3 FY26, following sporadic activity in previous quarters, suggests deep-rooted business continuity issues. Promoters reducing their stake to just 2.23% signals lack of confidence from those closest to the business. The absence of any institutional investors underscores the stock's uninvestability from a quality perspective.
Fair Value Estimate: Given zero current revenue and uncertain operational restart, meaningful valuation is impossible. The stock trades on hope rather than fundamentals, with downside risk to the 52-week low of ₹20.71 (30% downside from current levels) appearing more likely than any sustainable recovery.
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 is based on publicly available information as of February 13, 2026, and circumstances may change materially.
