The Q3 FY26 results paint a stark picture of a company in severe distress. With no sales generation for multiple consecutive quarters and mounting operational losses, Sanco Industries appears to have ceased meaningful business operations. The net loss of ₹0.17 crores in Q3 FY26 represents a significant deterioration from Q2 FY26's loss of ₹0.07 crores, marking a 142.86% quarter-on-quarter increase in losses despite zero revenue.
Financial Performance: A Company Without Revenue
The financial performance of Sanco Industries in Q3 FY26 reveals the complete absence of business operations. The company reported zero net sales for the quarter, a pattern that has persisted across all reported quarters in recent periods. Operating profit before depreciation, interest, and tax (PBDIT) excluding other income stood at a negative ₹0.15 crores, marking the worst quarterly performance in the available data series.
| Quarter | Net Sales (₹ Cr) | PBDIT Excl OI (₹ Cr) | Net Loss (₹ Cr) | Other Income (₹ Cr) |
|---|---|---|---|---|
| Dec'25 (Q3) | 0.00 | -0.15 | -0.17 | 0.01 |
| Sep'25 (Q2) | 0.00 | -0.05 | -0.07 | 0.01 |
| Jun'25 (Q1) | 0.00 | -0.08 | -0.10 | 0.01 |
| Mar'25 (Q4) | 0.00 | -0.09 | -0.09 | 0.03 |
| Dec'24 (Q3) | 0.00 | -0.06 | -0.08 | 0.01 |
The quarterly loss trajectory shows deteriorating trends with Q3 FY26 losses expanding 112.50% year-on-year from Q3 FY25's loss of ₹0.08 crores. Employee costs, whilst minimal at ₹0.00 crores in Q3 FY26, indicate a skeletal workforce. Depreciation charges of ₹0.03 crores suggest the company still maintains some fixed assets on its books, though these assets generate no productive output.
On a nine-month basis for FY2026, Sanco Industries has accumulated losses of ₹0.34 crores against zero revenue, compared to nine-month FY2025 losses of ₹0.31 crores. The marginal other income of ₹0.01 crores in Q3 FY26, down from ₹0.03 crores in Q4 FY25, provides negligible relief against mounting operational costs.
Critical Red Flag: Zero Revenue Operations
Sanco Industries has reported zero net sales across all available quarterly data points, indicating the company has effectively ceased commercial operations. With no revenue generation and persistent losses, the company faces severe questions about its going concern status. The absence of any business activity for multiple quarters represents a fundamental breakdown in corporate operations.
Balance Sheet Deterioration: Negative Book Value Territory
The balance sheet position of Sanco Industries reveals severe capital erosion. As of March 2021, shareholder funds stood at ₹14.68 crores, comprising share capital of ₹11.51 crores and reserves of ₹3.17 crores. However, the company's book value per share of ₹12.75 alongside a negative price-to-book ratio of -0.53 indicates that the company has entered negative book value territory in recent periods.
Long-term debt stood at ₹11.05 crores as of March 2021, whilst current liabilities totalled ₹63.51 crores. Trade payables of ₹12.91 crores suggest outstanding obligations to suppliers, though with zero revenue, the company's ability to service these obligations remains highly questionable. Fixed assets of ₹1.74 crores and investments of ₹0.47 crores represent the remnants of the company's asset base.
The company's return on equity (ROE) stands at 0.0%, whilst return on capital employed (ROCE) is deeply negative at -20.04% on average, reflecting the destruction of shareholder value. With negative book value, the company has exhausted its equity base, leaving shareholders with no residual claim on assets after liabilities.
Capital Erosion Analysis
The transition from positive shareholder funds of ₹14.68 crores in March 2021 to negative book value represents complete capital erosion. This deterioration, combined with zero revenue generation, places the company in a precarious financial position where recovery appears increasingly unlikely without significant capital infusion or business restructuring.
Historical Context: From Operating Company to Shell
Examining Sanco Industries' historical performance reveals a dramatic collapse from an operating business to its current dormant state. In FY2018, the company generated revenue of ₹172.00 crores with a net profit of ₹4.00 crores. By FY2021, revenue had collapsed 94.60% to just ₹2.00 crores, accompanied by a devastating loss of ₹23.00 crores.
| Year | Net Sales (₹ Cr) | YoY Growth | PAT (₹ Cr) | PAT Margin |
|---|---|---|---|---|
| Mar'21 | 2.00 | -94.60% | -23.00 | -1150.0% |
| Mar'20 | 37.00 | -67.00% | 0.00 | 0.0% |
| Mar'19 | 112.00 | -34.90% | 0.00 | 0.0% |
| Mar'18 | 172.00 | +59.30% | 4.00 | 2.3% |
| Mar'17 | 108.00 | -68.40% | 3.00 | 2.8% |
The five-year sales growth rate of -100.00% tells the complete story of operational collapse. Operating margins, which stood at 9.30% in FY2017, deteriorated catastrophically to -1150.0% by FY2021. This pattern reflects not merely business challenges but the effective cessation of commercial operations.
Peer Comparison: Bottom of the Barrel
When compared to peers in the diversified consumer products sector, Sanco Industries occupies the weakest position across virtually all metrics. The company's ROE of 0.0% compares unfavourably to sector peers, with Pearl Polymers delivering 21.02% and Solve Plastic achieving 16.17%. The negative price-to-book ratio of -0.53 stands in stark contrast to peers trading at positive multiples.
| Company | P/E (TTM) | P/BV | ROE | Debt/Equity | Market Cap (₹ Cr) |
|---|---|---|---|---|---|
| Sanco Industries | NA (Loss Making) | -0.53 | 0.0% | -9.07 | 3.00 |
| Medistep Health | 8.13 | 2.00 | 0.0% | -0.04 | N/A |
| Pearl Polymers | NA (Loss Making) | 0.91 | 21.02% | -0.81 | N/A |
| SPP Polymer | 22.47 | 0.51 | 2.21% | 0.21 | N/A |
| Solve Plastic | NA (Loss Making) | 0.99 | 16.17% | 0.76 | N/A |
With a market capitalisation of merely ₹3.00 crores, Sanco Industries ranks dead last amongst its peer group. The company's inability to generate any revenue whilst peers maintain operational businesses highlights the severity of its distress. Even amongst loss-making peers, Sanco stands out for its complete operational shutdown.
Shareholding Pattern: Stable but Concerning
The shareholding pattern of Sanco Industries reveals a static structure with promoters holding 42.50% across all recent quarters. This unchanging promoter stake, combined with zero institutional participation, reflects the complete absence of investor interest in the company.
| Quarter | Promoter % | FII % | MF % | Insurance % | Non-Institutional % |
|---|---|---|---|---|---|
| Dec'25 | 42.50% | 0.00% | 0.00% | 0.00% | 57.50% |
| Sep'25 | 42.50% | 0.00% | 0.00% | 0.00% | 57.50% |
| Jun'25 | 42.50% | 0.00% | 0.00% | 0.00% | 57.50% |
| Mar'25 | 42.50% | 0.00% | 0.00% | 0.00% | 57.50% |
The complete absence of foreign institutional investors (FIIs), mutual funds, and insurance companies signals zero institutional confidence. With no quarter-on-quarter changes in any shareholder category, the stock appears to be trapped in a liquidity desert with minimal trading interest. Positively, there is no promoter pledging, though this offers little comfort given the company's operational paralysis.
Stock Performance: Catastrophic Value Destruction
The stock performance of Sanco Industries reflects the market's harsh assessment of the company's prospects. Trading at ₹2.31 as of February 16, 2026, the stock has delivered devastating returns across all timeframes. Over the past year, shareholders have suffered a 37.06% loss, underperforming the Sensex by 46.72 percentage points.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Month | -32.26% | -0.35% | -31.91% |
| 3 Months | +14.36% | -1.52% | +15.88% |
| 6 Months | -18.95% | +3.32% | -22.27% |
| 1 Year | -37.06% | +9.66% | -46.72% |
| 3 Years | -73.45% | +35.81% | -109.26% |
| 5 Years | -82.43% | +59.83% | -142.26% |
| 10 Years | -92.35% | +259.08% | -351.43% |
The longer-term picture is even more devastating. Over five years, the stock has destroyed 82.43% of shareholder wealth, underperforming the Sensex by 142.26 percentage points. The ten-year return of -92.35% represents near-total capital annihilation. The stock's volatility of 50.54% combined with negative returns places it firmly in the "high risk, low return" category.
Recent momentum shows extreme weakness, with the stock down 11.83% over the past week and 32.26% over the past month. The stock trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating pervasive bearish sentiment.
Technical Analysis: Mildly Bearish with No Support
From a technical perspective, Sanco Industries displays a mildly bearish trend that changed on January 27, 2026, at ₹3.21. The stock currently trades at ₹2.31, representing a 28.04% decline from the trend change point. Technical indicators present a mixed picture, with weekly MACD showing bullish signals whilst moving averages remain decisively bearish.
The 52-week range of ₹1.66 to ₹4.22 shows the stock currently 45.26% below its high and 39.16% above its low. Immediate support lies at the 52-week low of ₹1.66, whilst resistance emerges at the 20-day moving average of ₹2.92. With zero trading volume reported and minimal liquidity, technical levels offer limited practical utility for investors.
Quality Assessment: Below Average and Deteriorating
The quality grade for Sanco Industries stands at "Below Average," reflecting long-term financial underperformance. The company's five-year sales growth of -100.00% and average ROCE of -20.04% highlight fundamental operational failure. With negative book value, the company has exhausted its capital base, leaving no cushion for shareholders.
On the positive side, the company maintains zero promoter pledging and operates with negative net debt, suggesting some cash holdings relative to borrowings. However, these minor positives pale against the overwhelming negatives of zero revenue, persistent losses, and complete capital erosion.
Investment Thesis: A Company in Terminal Decline
The investment thesis for Sanco Industries is unequivocally negative. The company scores just 17 out of 100 on proprietary metrics, firmly placing it in "Strong Sell" territory. The combination of zero revenue generation, mounting quarterly losses, negative book value, and catastrophic stock performance creates an investment profile devoid of merit.
The company's valuation grade of "Risky" reflects the fundamental uncertainty around its viability as a going concern. With no business operations, no institutional support, and a market capitalisation of merely ₹3.00 crores, Sanco Industries appears to be a corporate shell awaiting either revival or dissolution.
Key Concerns
- Zero Revenue: Complete absence of sales across all recent quarters indicates operational shutdown
- Mounting Losses: Q3 FY26 loss of ₹0.17 crores represents 142.86% QoQ deterioration
- Negative Book Value: Capital completely eroded with book value per share at ₹12.75 but negative P/BV ratio
- No Institutional Interest: Zero holdings by FIIs, mutual funds, or insurance companies
- Catastrophic Returns: 92.35% value destruction over ten years
- Liquidity Crisis: Minimal trading volumes and market cap of just ₹3.00 crores
- Going Concern Doubts: Persistent losses with no revenue raise fundamental viability questions
Limited Positives
- No Pledging: Zero promoter share pledging provides minor comfort
- Negative Net Debt: Company holds some cash relative to borrowings
- Stable Promoter Holding: 42.50% promoter stake unchanged across quarters
Outlook: No Catalysts for Recovery
The outlook for Sanco Industries remains profoundly negative with no visible catalysts for operational recovery. The company would require significant capital infusion, complete business restructuring, and management overhaul to return to viability. Without immediate and drastic action, the company risks delisting or dissolution.
Critical Red Flags
- Continued zero revenue in subsequent quarters
- Further deterioration in quarterly losses
- Any additional capital erosion beyond current negative book value
- Regulatory actions or delisting threats
- Promoter stake reduction or corporate governance issues
What Could Help (Unlikely)
- Major capital infusion from strategic investor
- Complete business model pivot with revenue generation
- Asset monetisation to return capital to shareholders
- Merger or acquisition by operating entity
The Verdict: Avoid at All Costs
Score: 17/100
For Fresh Investors: Under no circumstances should fresh capital be deployed into Sanco Industries. The company exhibits all characteristics of a failed business with zero revenue, mounting losses, negative book value, and no operational activity. The investment represents near-certain capital loss.
For Existing Holders: Exit immediately at any available price. With no business operations, institutional support, or recovery catalysts, holding shares represents dead capital with high probability of total loss. The 92.35% value destruction over ten years will likely continue unabated.
Fair Value Estimate: ₹0.00 (100.00% downside from current price of ₹2.31)
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 16, 2026, and circumstances may change materially.
