Despite the quarterly profit, the stock has remained under pressure, trading at ₹27.91 as of February 09, 2026, down 40.04% over the past year and significantly below its 52-week high of ₹54.65. The company's operational challenges, minimal institutional interest, and weak long-term financial metrics continue to weigh on investor sentiment.
The Mumbai-based company, which provides construction and consultancy services in the Indian real estate sector, has struggled with revenue consistency throughout FY26. After recording minimal sales of ₹0.04 crores in Q2 FY26 and zero revenues in Q1 FY26, the sharp 375.00% quarter-on-quarter revenue jump to ₹0.19 crores in Q3 FY26 provided some relief. However, on a year-on-year basis, revenues declined 85.04% from ₹1.27 crores in Q3 FY25, highlighting the company's ongoing operational challenges.
Financial Performance: Volatile Quarter Delivers Surprise Profit
Krishna Ventures' Q3 FY26 results demonstrated extreme volatility characteristic of micro-cap companies with lumpy project-based revenues. The company's net sales of ₹0.19 crores, whilst representing a substantial sequential improvement, remain minuscule in absolute terms and reflect the challenges of maintaining consistent business flow in the competitive real estate consultancy space.
The operating profit before depreciation, interest, and tax (PBDIT) excluding other income stood at ₹0.07 crores in Q3 FY26, yielding an operating margin of 36.84%. This marked a dramatic improvement from the negative 575.0% margin in Q2 FY26 when the company posted an operating loss of ₹0.23 crores on revenues of just ₹0.04 crores. The margin recovery suggests improved cost control and better project economics, though the small absolute numbers make quarter-to-quarter comparisons challenging.
| Quarter | Revenue (₹ Cr) | Net Profit (₹ Cr) | Operating Margin | PAT Margin |
|---|---|---|---|---|
| Dec'25 (Q3 FY26) | 0.19 | 0.03 | 36.84% | 15.79% |
| Sep'25 (Q2 FY26) | 0.04 | (0.28) | -575.0% | -700.0% |
| Jun'25 (Q1 FY26) | 0.00 | (0.18) | 0.0% | 0.0% |
| Mar'25 (Q4 FY25) | 0.26 | (0.42) | -203.85% | -161.54% |
| Dec'24 (Q3 FY25) | 1.27 | 0.07 | 1.57% | 5.51% |
| Sep'24 (Q2 FY25) | 0.12 | (0.27) | -183.33% | -225.0% |
| Jun'24 (Q1 FY25) | 0.08 | (0.25) | -325.0% | -312.5% |
The profit after tax of ₹0.03 crores in Q3 FY26, whilst modest, represents a significant improvement from the cumulative losses of ₹0.46 crores recorded across the first two quarters of FY26. Employee costs remained controlled at negligible levels in Q3 FY26 after spiking to ₹0.17 crores and ₹0.16 crores in Q2 and Q1 respectively. The company reported minimal interest expense and depreciation of ₹0.03 crores during the quarter.
Other income, which had provided a cushion of ₹0.12 crores in Q1 FY26, was negligible at ₹0.00 crores in Q3 FY26, indicating that the quarterly profit was driven entirely by operational improvements rather than non-core income. The company's tax expense remained minimal at ₹0.00 crores, resulting in a tax rate of 0.00% for the quarter.
Critical Revenue Volatility
Krishna Ventures' quarterly revenues have fluctuated wildly, ranging from ₹0.00 crores to ₹1.27 crores over the past seven quarters. This extreme volatility reflects the lumpy, project-based nature of the business and raises serious questions about revenue visibility and sustainability. The company's inability to maintain consistent revenue generation remains its most significant operational challenge.
Operational Challenges: Weak Returns and Balance Sheet Concerns
The company's return on equity (ROE) stands at a dismal 0.05% on average, with the latest quarterly ROE at negative 7.66%, indicating extremely poor capital efficiency. This weak profitability metric reflects the company's struggle to generate meaningful returns for shareholders despite a relatively clean balance sheet with minimal debt. The average return on capital employed (ROCE) of negative 4.24% (latest: negative 10.98%) further underscores the operational inefficiencies plaguing the business.
Krishna Ventures' balance sheet as of March 2025 showed shareholder funds of ₹10.59 crores, down from ₹11.46 crores in the previous year, primarily due to erosion in reserves and surplus which declined from ₹0.66 crores to negative ₹0.21 crores. The company raised long-term debt of ₹3.43 crores during FY25, marking a departure from its previously debt-free status. This borrowing, combined with deteriorating profitability, raises concerns about financial flexibility.
Fixed assets stood at ₹2.81 crores as of March 2025, down sharply from ₹5.97 crores in the previous year, whilst investments increased to ₹5.49 crores from zero, suggesting a reallocation of capital away from operational assets. Current assets of ₹10.90 crores provide some liquidity cushion, though the company's ability to convert these assets into profitable revenues remains questionable given the operational track record.
Quality Concerns Mount
Krishna Ventures carries a "Below Average" quality rating, downgraded from "Average" in November 2025. The company's 5-year sales growth of 20.49% is offset by a negative 60.19% EBIT growth over the same period, indicating deteriorating operational efficiency. With average EBIT to interest coverage of negative 0.46 times and consistently weak return ratios, the company struggles to demonstrate fundamental strength despite maintaining zero promoter pledging.
Market Performance: Deep Underperformance Despite Recent Rally
Krishna Ventures' stock has experienced significant volatility, trading at ₹27.91 as of February 09, 2026, representing a gain of 4.73% on the day. Whilst the stock has rallied 84.59% over the past three months and 74.66% over six months, these gains pale in comparison to the severe losses over longer timeframes. The stock remains down 40.04% over one year, 62.98% over two years, and a devastating 74.57% over three years, dramatically underperforming the Sensex which gained 7.89%, 17.33%, and 38.14% respectively over these periods.
The stock's recent momentum has been supported by technical factors, with the price trading above all key moving averages including the 5-day (₹25.96), 20-day (₹26.31), 50-day (₹20.36), 100-day (₹18.24), and 200-day (₹19.88) moving averages. Technical indicators show a "Mildly Bullish" overall trend as of February 05, 2026, with weekly MACD and moving averages flashing bullish signals, though monthly indicators remain mixed.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | +6.45% | +2.86% | +3.59% |
| 1 Month | +32.21% | +0.51% | +31.70% |
| 3 Months | +84.59% | +0.94% | +83.65% |
| 6 Months | +74.66% | +5.19% | +69.47% |
| Year-to-Date | +41.96% | -1.43% | +43.39% |
| 1 Year | -40.04% | +7.89% | -47.93% |
| 2 Years | -62.98% | +17.33% | -80.31% |
| 3 Years | -74.57% | +38.14% | -112.71% |
The stock's high beta of 1.50 indicates significantly higher volatility than the broader market, with an annual volatility of 57.94% compared to the Sensex's 11.53%. This elevated risk profile, combined with negative risk-adjusted returns of negative 0.69 over one year, places Krishna Ventures firmly in the "High Risk Low Return" category. The stock trades between a 52-week low of ₹12.44 and a high of ₹54.65, currently positioned 48.93% below its peak.
Valuation Analysis: Risky Proposition at Current Levels
Krishna Ventures carries a "Risky" valuation grade, reflecting the company's loss-making status and weak fundamental metrics. With the company posting losses on a trailing twelve-month basis, the P/E ratio is not applicable (shown as "NA - Loss Making"). The price-to-book value ratio of 2.72 times appears elevated given the company's poor return on equity of just 0.05% and deteriorating financial performance.
The company's enterprise value metrics paint an unflatourable picture, with EV/EBITDA at negative 28.76 times and EV/EBIT at negative 24.79 times due to negative operating profits. The EV/Sales ratio of 18.32 times appears extremely stretched for a company generating minimal revenues with no clear path to profitability. At a market capitalisation of just ₹29.00 crores and book value per share of ₹9.80, the stock trades at a significant premium to book value despite lacking fundamental justification.
Valuation Disconnect
Krishna Ventures' current valuation appears disconnected from its operational reality. Trading at 2.72 times book value whilst generating near-zero returns on equity and facing persistent revenue challenges, the stock offers minimal margin of safety. The "Risky" valuation grade, which was downgraded from "Very Expensive" in January 2024, continues to reflect the fundamental-valuation mismatch that makes this an unattractive investment proposition at current levels.
Peer Comparison: Lagging Industry Standards
Within the realty sector peer group, Krishna Ventures ranks poorly across most financial metrics. The company's ROE of 0.05% significantly trails peers such as Shantidoot Infra (38.27%) and Citadel Realty (7.38%), highlighting its inability to generate competitive returns. Whilst Krishna Ventures maintains a debt-free status on an operational basis (debt-to-equity of 0.00), this conservative capital structure has not translated into superior profitability.
| Company | P/E Ratio | P/BV Ratio | ROE % | Div Yield | Debt/Equity |
|---|---|---|---|---|---|
| Krishna Ventures | NA (Loss Making) | 2.72 | 0.05% | NA | 0.00 |
| Citadel Realty | 25.37 | 2.11 | 7.38% | 1.19% | 0.96 |
| Shantidoot Infra | 6.58 | 2.99 | 38.27% | NA | -0.12 |
| MPDL Ltd | NA (Loss Making) | 0.32 | 4.30% | NA | 0.58 |
| Kretto Syscon | 30.61 | 0.47 | 2.15% | NA | -0.04 |
| Parshwanath Corp | 59.19 | 2.27 | 0.0% | NA | 0.00 |
The company's price-to-book ratio of 2.72 times ranks among the highest in the peer group, exceeded only by Shantidoot Infra at 2.99 times. However, unlike Shantidoot which justifies its premium valuation with a robust 38.27% ROE, Krishna Ventures offers no such fundamental support. With a market capitalisation of ₹29.00 crores, Krishna Ventures ranks fifth in the peer group, reflecting its micro-cap status and limited institutional appeal.
Shareholding Pattern: Promoter Stake Declines Sharply
Promoter holding in Krishna Ventures has witnessed a concerning decline over recent quarters, dropping from 69.24% in December 2024 to 58.15% as of December 2025. The most significant reduction occurred between June 2025 and March 2025, when promoter stake fell from 58.22% to 67.94%, followed by another decline to 58.15% by September 2025. This pattern of promoter stake reduction, totalling approximately 11 percentage points over four quarters, raises questions about promoter confidence in the company's prospects.
| Quarter | Promoter % | QoQ Change | FII % | MF % | Public % |
|---|---|---|---|---|---|
| Dec'25 | 58.15% | 0.00% | 0.00% | 0.00% | 41.85% |
| Sep'25 | 58.15% | -0.07% | 0.00% | 0.00% | 41.85% |
| Jun'25 | 58.22% | -9.72% | 0.00% | 0.00% | 41.78% |
| Mar'25 | 67.94% | -1.30% | 0.00% | 0.00% | 32.06% |
| Dec'24 | 69.24% | — | 0.00% | 0.00% | 30.76% |
The company has zero institutional participation, with no holdings from foreign institutional investors (FIIs), mutual funds, insurance companies, or other domestic institutional investors. The absence of institutional interest reflects the company's micro-cap status, weak financial performance, and limited liquidity. Non-institutional shareholders have correspondingly increased their stake from 30.76% to 41.85% over the same period, though this likely represents retail investors rather than sophisticated institutional capital.
Key promoters include Neeraj Gupta (31.15%), Freshplate Agro Foods Private Limited (14.41%), Ashva Energy Private Limited (11.30%), and Gaurav Jindal (1.29%). Positively, there is no promoter pledging, indicating that promoters have not leveraged their holdings for external financing, though the declining stake trend remains a concern for potential investors.
Investment Thesis: Multiple Red Flags Outweigh Single Quarter Profit
Krishna Ventures' investment proposition remains fundamentally weak despite the Q3 FY26 return to profitability. The company's proprietary Mojo Score of 33 out of 100 places it firmly in "SELL" territory, reflecting the multiple structural challenges facing the business. The score improved marginally from 12 (Strong Sell) on February 05, 2026, primarily due to technical momentum rather than fundamental improvement.
The four-pillar Mojo assessment reveals significant weaknesses across parameters. Near-term drivers show a "Neutral" rating, with a "Flat" financial trend in Q3 FY26 offset by "Mildly Bullish" technicals. Quality assessment remains "Below Average," reflecting weak return ratios, inconsistent revenue generation, and poor long-term financial strength. Valuation carries a "Risky" grade, indicating the stock offers minimal margin of safety at current prices. The overall assessment remains "Cautious," with mixed signals across parameters providing no compelling reason for investment.
Key Strengths & Risk Factors
KEY STRENGTHS
- Return to Profitability: Q3 FY26 posted ₹0.03 crores profit after three consecutive loss-making quarters
- Strong QoQ Revenue Growth: Sales surged 375.00% quarter-on-quarter to ₹0.19 crores
- Margin Recovery: Operating margin improved dramatically to 36.84% from negative 575.0% in Q2 FY26
- No Promoter Pledging: Zero pledged shares indicate promoters haven't leveraged holdings
- Recent Technical Momentum: Stock trading above all key moving averages with mildly bullish trend
- Short-term Rally: Gained 84.59% over three months and 74.66% over six months
KEY CONCERNS
- Extreme Revenue Volatility: Quarterly sales ranging from ₹0.00 to ₹1.27 crores indicate no revenue visibility
- Weak Profitability Metrics: ROE of 0.05% and ROCE of negative 4.24% demonstrate poor capital efficiency
- Sharp YoY Revenue Decline: Q3 FY26 sales down 85.04% year-on-year from ₹1.27 crores
- Declining Promoter Stake: Promoter holding fell from 69.24% to 58.15% over four quarters
- Zero Institutional Interest: No FII, MF, or insurance company holdings reflect lack of confidence
- Severe Long-term Underperformance: Stock down 74.57% over three years vs Sensex up 38.14%
- Elevated Valuation: P/BV of 2.72x unjustified given near-zero ROE and operational challenges
Outlook: What to Watch
POSITIVE CATALYSTS
- Sustained revenue generation above ₹0.50 crores per quarter for two consecutive quarters
- Consistent profitability with PAT margins above 10% for three quarters
- Stabilisation of promoter holding above 58% with no further stake sales
- Entry of institutional investors (FII/MF) indicating improved credibility
- Improvement in ROE to above 5% demonstrating better capital efficiency
RED FLAGS
- Return to losses in Q4 FY26 or FY27 would confirm operational instability
- Further decline in promoter stake below 55% signalling loss of confidence
- Revenue falling below ₹0.10 crores in any quarter indicating business deterioration
- Increase in debt levels beyond ₹5 crores without corresponding revenue growth
- Continued absence of institutional investors over next two quarters
Krishna Ventures faces a critical juncture where management must demonstrate the ability to sustain revenues and profitability beyond a single quarter. The company's project-based business model in real estate consultancy requires significant improvement in execution consistency, client acquisition, and operational efficiency. Without visible improvement in these fundamental areas, the recent quarterly profit appears more anomalous than indicative of a genuine turnaround.
The declining promoter stake and complete absence of institutional participation suggest sophisticated investors remain unconvinced about the company's prospects. For Krishna Ventures to merit investor attention, it must demonstrate at minimum three to four consecutive quarters of profitable operations with revenues exceeding ₹0.50 crores per quarter, alongside stabilisation of the promoter holding and meaningful improvement in return ratios.
The Verdict: Avoid This Speculative Micro-Cap
Score: 33/100
For Fresh Investors: Avoid initiating positions in Krishna Ventures. The company's single quarter of profitability does not offset persistent operational challenges including extreme revenue volatility, weak return ratios, declining promoter stake, and zero institutional interest. The micro-cap's inability to demonstrate consistent revenue generation or profitability makes it unsuitable for serious long-term investors.
For Existing Holders: Consider exiting positions on any further rallies towards the ₹30-32 range. The recent technical momentum and three-month rally of 84.59% provides an opportunity to exit a fundamentally weak investment. The stock's high volatility (57.94%) and poor long-term track record (down 74.57% over three years) warrant reducing exposure.
Fair Value Estimate: ₹15-18 per share (46-35% downside from current levels), based on book value of ₹9.80 with a modest 1.5-2.0x multiple given weak return profile and operational uncertainty.
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 significant risks including illiquidity, volatility, and potential loss of capital.
