Saumya Consultants Q3 FY26: Erratic Performance Masks Deeper Structural Concerns

The Kolkata-based NBFC's quarterly revenue stood at ₹3.70 crores in Q3 FY26, declining 3.65% sequentially from ₹3.84 crores in Q2 FY26, though showing a 43.97% year-on-year improvement from ₹2.57 crores in Q3 FY25. The company's stock price of ₹152.80 has remained relatively flat, declining just 0.03% in the latest trading session, but the broader picture reveals a troubling 35.96% decline over the past year, significantly underperforming the Sensex's 10.41% gain by a staggering 46.37 percentage points.

The company's erratic quarterly performance, characterised by wild swings between profits and losses, raises serious questions about business sustainability and operational consistency. With a current Mojo Score of just 14 out of 100 and a "Strong Sell" rating, Saumya Consultants faces mounting investor scepticism despite its recent quarterly turnaround.

Financial Performance: Volatility Remains the Defining Characteristic

Saumya Consultants' Q3 FY26 financial performance demonstrates extreme volatility that has become the company's hallmark. Net sales of ₹3.70 crores in Q3 FY26 represent a marginal 3.65% sequential decline from Q2 FY26's ₹3.84 crores, but the year-on-year comparison shows a 43.97% improvement from ₹2.57 crores in Q3 FY25. However, this positive YoY growth must be viewed in context of the prior year's depressed base.

The company's operating profit before depreciation, interest, and tax (excluding other income) stood at ₹1.57 crores in Q3 FY26, yielding an operating margin of 42.43%. This marks a dramatic improvement from Q2 FY26's negative operating profit of ₹4.21 crores and negative margin of 109.64%. The quarterly swing from substantial operating losses to profitability highlights the inherent instability in the business model.

Net profit of ₹1.08 crores in Q3 FY26 represents a recovery from the ₹3.59 crores loss posted in Q2 FY26. On a year-on-year basis, this reflects a turnaround from the ₹2.89 crores loss in Q3 FY25. The PAT margin improved to 29.19% from the dismal -93.49% in the previous quarter, though such extreme margin fluctuations underscore operational inconsistency rather than sustainable improvement.

Looking at the half-yearly performance for H1 FY26 (April-September 2025), the company reported revenue of ₹7.54 crores with a net loss of ₹2.51 crores, representing a concerning 70.15% decline compared to the previous corresponding period. This deterioration in half-yearly performance contradicts the seemingly positive quarterly turnaround, revealing that the recent quarter's profitability may be more anomalous than indicative of sustained recovery.

Profitability Metrics: Weak Return on Equity Signals Capital Inefficiency

Despite the quarterly profit, Saumya Consultants' return on equity (ROE) stands at a concerning -5.88% on a latest basis, reflecting the company's inability to generate returns for shareholders. The five-year average ROE of 13.21%, whilst appearing modest, masks the recent deterioration in profitability. For an NBFC, where capital efficiency is paramount, such weak ROE metrics indicate fundamental challenges in deploying shareholder capital productively.

The company's return on capital employed (ROCE) paints an even bleaker picture at -18.80%, suggesting that the business is destroying value rather than creating it. This negative ROCE, combined with operating losses in recent quarters, points to a business model under severe stress. The absence of meaningful debt (debt-to-equity ratio of 0.00) provides some balance sheet comfort, but also raises questions about the company's ability to leverage its capital structure for growth.

Employee costs have shown relative stability, ranging between ₹0.27 crores and ₹0.57 crores across recent quarters, representing a manageable proportion of revenue in profitable quarters but becoming burdensome during loss-making periods. The company's operating leverage remains negative, with fixed costs overwhelming revenue generation in multiple quarters.

Industry Context: Underperforming in a Thriving NBFC Sector

The broader NBFC sector has delivered robust returns of 26.99% over the past year, making Saumya Consultants' 35.96% decline particularly stark. The company has underperformed its sector by a massive 62.95 percentage points, indicating company-specific issues rather than sector-wide headwinds. Whilst many NBFCs have capitalised on India's credit growth story and improving asset quality, Saumya Consultants has failed to participate in this sectoral tailwind.

The company's classification as a micro-cap with just ₹106.00 crores in market capitalisation places it amongst the smallest players in the NBFC universe. This size disadvantage limits access to cost-effective funding, restricts product diversification, and constrains the ability to invest in technology and talent—all critical factors for NBFC competitiveness in the current environment.

With zero institutional holdings (FII, mutual fund, and insurance companies all at 0.00%), Saumya Consultants lacks the credibility and governance oversight that institutional investors typically bring. The complete absence of sophisticated investors signals deep-seated concerns about the company's business model, management quality, or growth prospects. Promoters maintain a stable 54.88% stake with no pledging, providing some governance comfort, but the remaining 45.12% non-institutional shareholding suggests a largely retail investor base.

Compared to micro-cap NBFC peers, Saumya Consultants trades at a price-to-book value of 0.84x, below the peer average of approximately 1.50x. Whilst this might appear attractive on the surface, the discount reflects justified concerns about the company's loss-making status and erratic performance. The company's average ROE of 13.21% compares favourably to some peers like Assam Entrade (3.43%) and RSD Finance (7.07%), but trails Prithvi Exchange's 16.53%.

Valuation Analysis: Discount Reflects Fundamental Concerns

Saumya Consultants' current valuation metrics reflect the market's deep scepticism about the company's prospects. Trading at a price-to-book value of 0.84x, the stock trades at a 16% discount to its book value of ₹170.93 per share. This discount, rather than presenting a value opportunity, appears to be a rational response to the company's inability to generate adequate returns on its equity base.

The company's loss-making status renders traditional earnings-based valuation metrics like P/E ratio meaningless. The enterprise value to EBITDA multiple of -2.77x and EV to EBIT of -2.64x further underscore the valuation challenges posed by negative earnings. The EV to sales ratio of 1.32x suggests the market values the entire business at just 1.32 times annual revenue—a modest multiple that reflects concerns about profitability and sustainability.

The stock's valuation grade has oscillated between "Attractive" and "Very Expensive" over the past year, currently classified as "Attractive" since July 31, 2025. However, this "attractive" classification appears mechanical rather than fundamental, driven by the stock's price decline rather than any improvement in underlying business quality. The absence of dividend yield (marked as NA) eliminates income as an investment rationale.

The stock currently trades 37.24% below its 52-week high of ₹243.45 and 22.24% above its 52-week low of ₹125.00. This positioning in the lower half of its annual range, combined with negative financial trends, suggests limited upside potential without a fundamental transformation in business performance.

Shareholding Pattern: Stable Promoter Base, Zero Institutional Interest

Saumya Consultants' shareholding pattern reveals a stable promoter holding of 54.88% across the past five quarters, with no sequential changes. The promoter group, led by Arun Kumar Agarwalla (24.21%), Arun Kumar Agarwalla HUF (15.16%), Sudha Agarwalla (9.92%), and Gaurang Agarwalla (5.59%), maintains consistent ownership without any pledging of shares—a positive governance indicator.

However, the complete absence of institutional investors—foreign institutional investors, mutual funds, insurance companies, and other domestic institutional investors all at 0.00%—represents a significant red flag. Institutional investors typically conduct rigorous due diligence before investing and provide governance oversight that benefits all shareholders. Their complete absence suggests fundamental concerns about business viability, management credibility, or regulatory compliance that have kept sophisticated investors away.

The 45.12% non-institutional holding, unchanged across quarters, indicates a largely retail shareholder base that may lack the resources or expertise to effectively monitor management or demand accountability. This ownership structure, whilst stable, lacks the quality and sophistication that typically drives corporate governance improvements and strategic discipline.

Stock Performance: Severe Underperformance Across All Timeframes

Saumya Consultants' stock performance reveals a troubling pattern of sustained underperformance across most relevant timeframes. The stock has declined 35.96% over the past year, generating a negative alpha of 46.37 percentage points against the Sensex's 10.41% gain. This massive underperformance reflects the market's loss of confidence in the company's ability to deliver sustainable profitability.

The recent one-week surge of 15.63% appears to be a technical bounce rather than fundamental improvement, with the stock generating positive alpha of 15.13 percentage points. However, this short-term spike must be viewed against the backdrop of sustained underperformance. The three-month return of -5.24% and year-to-date decline of 3.84% underscore the stock's inability to sustain momentum.

On a longer-term basis, the stock shows mixed performance. The two-year return of 34.80% (alpha of +17.15%) and three-year return of 72.85% (alpha of +34.04%) suggest periods of outperformance, though these gains appear to be eroding rapidly. The stock's high beta of 1.50 indicates significantly higher volatility than the broader market, with a concerning volatility measure of 61.07%—more than five times the Sensex's 11.52% volatility.

The risk-adjusted return of -0.59 for the past year, combined with negative Sharpe ratio, classifies the stock in the "HIGH RISK LOW RETURN" category—the worst possible combination for investors. This risk-return profile makes the stock unsuitable for most investor portfolios, particularly those seeking stable returns or capital preservation.

Investment Thesis: Multiple Red Flags Overwhelm Isolated Positives

The investment thesis for Saumya Consultants is fundamentally challenged by multiple structural weaknesses that overshadow any temporary quarterly improvements. The company's Mojo Score of 14 out of 100, firmly in "Strong Sell" territory, reflects a comprehensive assessment across four critical parameters.

The quality assessment of "Below Average" reflects the company's weak long-term financial performance, characterised by operating losses and negative EBIT growth of 238.75% over five years. Whilst the five-year sales growth of 14.63% appears modest, it has not translated into profitability or value creation. The complete absence of institutional holdings (0.0%) further validates concerns about business quality and management credibility.

The financial trend classification of "Negative" as of December 2025 highlights deteriorating fundamentals. Net sales for the latest six months (H1 FY26) declined 70.15% to ₹7.54 crores, whilst PAT for the same period showed a loss of ₹2.51 crores, also down 70.15%. Cash and cash equivalents hitting a low of ₹0.44 crores on a half-yearly basis raises liquidity concerns despite the debt-free balance sheet.

The technical trend of "Sideways" since February 10, 2026, offers no directional conviction for traders or investors. With the stock trading below all key moving averages (5-day, 20-day, 50-day, and 100-day), technical indicators point to weakness rather than strength. The high beta of 1.50 and extreme volatility of 61.07% make the stock unsuitable for risk-averse investors.

Outlook: Critical Monitoring Points for Any Potential Recovery

For Saumya Consultants to justify any investment consideration, the company must demonstrate sustained improvement across multiple dimensions. Investors should monitor specific catalysts and warning signs that will determine whether the Q3 FY26 profitability represents a genuine turnaround or merely another temporary blip in an erratic performance pattern.

The company's ability to demonstrate operational consistency will be paramount. For an NBFC, transparent disclosure of loan book composition, asset quality metrics, and funding sources would significantly improve investor confidence. Currently, the lack of detailed operational disclosure compounds concerns about business sustainability.