The company's financial position has deteriorated alarmingly, with shareholder equity turning deeply negative at ₹-362.06 crores as of March 2025, resulting in a book value per share of ₹-433.13. This technical insolvency reflects accumulated losses of ₹-370.42 crores against a share capital of just ₹8.36 crores. The current quarter's massive loss has further eroded whatever limited financial cushion remained, raising serious questions about the company's ability to continue as a going concern.
Financial Performance: A Collapse in Profitability
Williamson Financial Services' Q2 FY26 results reveal a company in severe financial distress. Net sales remained negligible at ₹0.01 crores, barely registering any meaningful business activity. Operating profit before depreciation, interest, and tax (PBDIT), excluding other income, stood at a staggering loss of ₹19.09 crores, translating to an incomprehensible operating margin of -190,900%. This metric alone underscores the complete absence of viable core operations.
| Quarter | Net Sales (₹ Cr) | Net Profit (₹ Cr) | QoQ Change | YoY Change |
|---|---|---|---|---|
| Sep'25 | 0.01 | -4.55 | -7,483% | Loss vs profit |
| Jun'25 | 0.00 | -0.06 | -88.2% | -110.2% |
| Mar'25 | 0.00 | -5.07 | +7,142.9% | -868.2% |
| Dec'24 | 0.00 | -0.07 | -163.6% | Loss vs profit |
| Sep'24 | 0.00 | 0.11 | -81.4% | -83.3% |
| Jun'24 | 0.00 | 0.59 | -10.6% | -20.3% |
| Mar'24 | 0.00 | 0.66 | — | — |
Other income of ₹14.63 crores in Q2 FY26 provided some relief, but even this substantial non-operating income could not prevent a pre-tax loss of ₹4.48 crores. The company recorded a tax credit of ₹0.08 crores, reflecting adjustments to deferred tax liabilities, but this minimal benefit did little to cushion the final loss. Employee costs rose to ₹0.06 crores in Q2 FY26 from ₹0.02 crores in Q1 FY26, suggesting some ongoing administrative activity despite the absence of meaningful revenue generation.
Critical Financial Red Flags
Negative Shareholder Equity: The company's balance sheet shows shareholder funds of ₹-362.06 crores, indicating technical insolvency. Current liabilities of ₹509.05 crores far exceed current assets of ₹28.46 crores, creating a severe liquidity crisis. With virtually no fixed assets (₹0.01 crores) and zero investments, the company lacks any meaningful asset base to support operations or meet obligations.
Operational Collapse: No Viable Business Model
The fundamental issue facing Williamson Financial Services is the complete absence of a functioning business model. Originally incorporated as 'The Makum Tea Co. (India) Limited' in 1971 to engage in tea cultivation and manufacturing, the company has long since abandoned its core operations. The current incarnation as a financial services entity generates virtually no revenue, with quarterly sales consistently at or near zero for the past several years.
Return on equity (ROE) stands at 0.0%, though this figure is somewhat meaningless given the negative book value. The company's return on capital employed (ROCE) is deeply negative at -32.76%, reflecting the destruction of capital rather than its productive deployment. With no meaningful debt (the company is technically a net cash entity due to accounting classifications), the financial structure offers no leverage benefits, only the burden of accumulated losses.
Balance Sheet Deterioration
Williamson Financial Services' balance sheet reveals a company on the brink of collapse. Reserves and surplus stand at ₹-370.42 crores as of March 2025, having deteriorated from ₹-356.19 crores a year earlier. Current liabilities of ₹509.05 crores include trade payables of ₹16.40 crores and other current liabilities of ₹492.65 crores, suggesting significant outstanding obligations with no clear path to settlement. Current assets have declined from ₹43.69 crores in March 2024 to ₹28.46 crores in March 2025, indicating a steady erosion of liquidity.
Industry Context: An Outlier in the NBFC Sector
Whilst the broader NBFC sector has delivered a robust 23.56% return over the past year, Williamson Financial Services has plummeted 35.00%, underperforming its sector by a massive 58.56 percentage points. This divergence reflects the company's unique distress situation, which bears no resemblance to the operational dynamics of functional NBFCs. Established NBFCs typically focus on asset-under-management (AUM) growth, net interest margins (NIMs), and asset quality metrics—none of which apply to Williamson Financial Services in its current state.
| Company | Market Cap (₹ Cr) | P/E Ratio | P/BV | ROE |
|---|---|---|---|---|
| Williamson Fin. | 6.00 | NA (Loss Making) | -0.02 | 0.0% |
| Money Masters | — | 18.90 | 0.41 | 3.89% |
| Aryan Share | — | 6.02 | — | — |
| Symbiox Investment | — | NA (Loss Making) | 0.19 | 0.85% |
| K Z Leasing | — | NA (Loss Making) | 0.31 | 5.63% |
Even amongst distressed micro-cap financial services companies, Williamson Financial Services stands out for the severity of its negative book value. Whilst peers like Symbiox Investment and K Z Leasing also report losses, they maintain positive shareholder equity and some semblance of operational activity. Williamson's negative price-to-book ratio of -0.02x reflects the market's assessment that the company's liabilities far exceed any recoverable asset value.
Valuation Analysis: No Margin of Safety
Traditional valuation metrics offer little guidance when assessing a company with negative book value and no earnings. The P/E ratio is not applicable given sustained losses. The enterprise value to EBITDA multiple of -18.39x reflects the negative EBITDA and the market's view that the enterprise has negative value. The company's proprietary Mojo Score of just 17 out of 100 places it firmly in "Strong Sell" territory, with the valuation grade marked as "Risky."
The stock trades at ₹6.87, down 42.80% from its 52-week high of ₹12.01, but still 20.32% above its 52-week low of ₹5.71. However, this price level offers no margin of safety. With negative book value, any positive stock price represents a speculative bet on an unlikely turnaround rather than a reflection of intrinsic value. The market capitalisation of ₹6.00 crores is dwarfed by the company's accumulated losses and liability burden.
Shareholding Pattern: Promoter Commitment Unchanged
Promoter holding has remained steady at 62.62% across the last five quarters, indicating no change in control or ownership structure. Williamson Magor & Co Limited holds 30.96%, McLeod Russel India Limited holds 19.94%, and Bishnauth Investments Limited holds 10.26%. The stability of promoter holding might suggest commitment, but it could equally reflect an inability to find buyers for a distressed asset.
| Quarter | Promoter | FII | MF | Insurance | Non-Inst |
|---|---|---|---|---|---|
| Dec'25 | 62.62% | 0.00% | 0.03% | 0.50% | 36.82% |
| Sep'25 | 62.62% | 0.00% | 0.03% | 0.50% | 36.82% |
| Jun'25 | 62.62% | 0.00% | 0.03% | 0.50% | 36.82% |
| Mar'25 | 62.62% | 0.00% | 0.03% | 0.50% | 36.82% |
| Dec'24 | 62.62% | 0.00% | 0.03% | 0.50% | 36.82% |
Institutional holdings are minimal, with mutual funds holding just 0.03%, insurance companies holding 0.50%, and foreign institutional investors completely absent. This lack of institutional interest reflects the company's distressed status and the absence of any credible investment case. Non-institutional investors account for 36.82%, likely comprising retail investors unaware of the severity of the company's financial position or speculators betting on an improbable turnaround.
Stock Performance: Severe Underperformance Across All Timeframes
Williamson Financial Services' stock performance has been disastrous across most timeframes. The stock has declined 4.85% in the past day, 13.91% over one week, and 27.68% over one month, consistently underperforming the Sensex. Year-to-date, the stock is down 36.97% compared to the Sensex's decline of just 1.11%, resulting in a negative alpha of 35.86 percentage points.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Day | -4.85% | +0.25% | -5.10% |
| 1 Week | -13.91% | +0.64% | -14.55% |
| 1 Month | -27.68% | +0.83% | -28.51% |
| 3 Month | -23.67% | +0.88% | -24.55% |
| 6 Month | +7.51% | +5.53% | +1.98% |
| YTD | -36.97% | -1.11% | -35.86% |
| 1 Year | -35.00% | +9.01% | -44.01% |
| 3 Years | +9.05% | +38.88% | -29.83% |
| 5 Years | +112.04% | +64.25% | +47.79% |
The stock's one-year return of -35.00% compares unfavourably with the Sensex's gain of 9.01%, generating a negative alpha of 44.01 percentage points. Technical indicators paint a uniformly bearish picture, with the stock trading below all key moving averages (5-day, 20-day, 50-day, 100-day, and 200-day). The MACD shows bearish signals on both weekly and monthly timeframes, whilst the RSI offers no clear directional guidance.
Investment Thesis: No Credible Path to Recovery
Williamson Financial Services presents no viable investment thesis. The company's proprietary Mojo Score of 17 out of 100 reflects deeply negative assessments across all four key parameters: valuation (marked "Risky"), quality grade ("Below Average"), financial trend ("Flat"), and technical trend ("Mildly Bearish"). The company has been assigned a "Strong Sell" rating, with the recommendation to "strongly consider selling" and "exit recommended."
The quality assessment reveals a company with negative 5-year sales growth of -2.30%, though EBIT growth shows a positive 12.58% (likely reflecting one-off gains rather than sustainable improvement). The average ROE of 0.0% and negative book value underscore the fundamental weakness. Institutional holdings of just 0.56% indicate that sophisticated investors have abandoned the stock.
Key Strengths and Risk Factors
Limited Positives
- Stable promoter holding at 62.62% suggests no immediate control issues
- Zero long-term debt eliminates refinancing risk
- Minimal fixed assets (₹0.01 crores) mean low depreciation burden
- Some other income generation (₹14.63 crores in Q2 FY26) provides temporary relief
Critical Risk Factors
- Negative shareholder equity of ₹362.06 crores indicates technical insolvency
- Virtually no revenue generation (₹0.01 crores in Q2 FY26)
- Massive quarterly loss of ₹4.55 crores with no turnaround in sight
- Current liabilities of ₹509.05 crores far exceed current assets of ₹28.46 crores
- No functioning business model or core operations
- Below-average quality grade and flat financial trend
- Severe stock underperformance (-35% vs sector +23.56%)
Outlook: Monitoring for Further Deterioration
Unlikely Positive Catalysts
- Successful business restructuring or asset monetisation
- Significant capital infusion from promoters or external investors
- Debt settlement or liability reduction programme
- Development of viable revenue-generating operations
Red Flags to Watch
- Further widening of quarterly losses beyond ₹5 crores
- Continued erosion of current assets and liquidity
- Any increase in current liabilities or trade payables
- Promoter stake dilution or exit
- Regulatory action or delisting threats
- Stock price decline below ₹5.71 (52-week low)
The outlook for Williamson Financial Services remains deeply concerning. With no clear path to profitability, mounting losses, and a balance sheet reflecting technical insolvency, the company faces an existential crisis. Investors should monitor any announcements regarding restructuring, asset sales, or capital infusion, though the probability of a successful turnaround appears remote. The stock's high volatility (57.08%) and negative risk-adjusted returns (-0.61) make it unsuitable for all but the most aggressive speculators.
The Verdict: Terminal Decline with No Investment Merit
Score: 17/100
For Fresh Investors: Avoid entirely. The company exhibits technical insolvency with negative shareholder equity of ₹362 crores, negligible revenue, and mounting quarterly losses. There is no credible investment case or margin of safety at any price level.
For Existing Holders: Exit at the earliest opportunity. The Q2 FY26 loss of ₹4.55 crores represents a severe deterioration, and the company's balance sheet offers no buffer against further losses. The risk of complete capital loss is substantial.
Fair Value Estimate: Not applicable. With negative book value and no earnings, traditional valuation methods cannot establish fair value. The stock price of ₹6.87 represents speculative value only, with downside risk to zero.
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 is based on publicly available information as of February 10, 2026, and reflects the severe financial distress exhibited by Williamson Financial Services Ltd. Past performance is not indicative of future results, and investors in distressed securities face substantial risk of total capital loss.
