Aayush Wellness Ltd Reports Mixed Quarterly Results Amid Margin Pressures

Quarterly Revenue Growth Hits New High

The company reported net sales of ₹44.53 crores for the quarter ended December 2025, marking the highest quarterly revenue in its recent history. This represents a significant improvement compared to previous quarters and underscores the company’s ability to drive top-line growth despite challenging market conditions. The 9-month period PAT also improved, standing at ₹3.42 crores, signalling some resilience in the bottom line over the longer term.

Operating Margins Under Pressure

However, the positive revenue trajectory was offset by a sharp contraction in operating profitability. The PBDIT for the quarter plunged to ₹0.41 crores, the lowest recorded in recent periods. This translated into an operating profit margin of just 0.92%, a marked decline from earlier quarters where margins were more robust. The PBT less other income also fell to ₹0.40 crores, indicating that core business profitability is under strain.

Earnings Per Share Decline Raises Concerns

EPS for the quarter dropped to ₹0.22, the lowest in recent times, reflecting the margin squeeze and increased cost pressures. This decline in earnings per share is a key concern for investors, especially given the company’s elevated valuation multiples in the past. The contraction in profitability metrics has contributed to a reassessment of the stock’s outlook by market analysts.

Mojo Grade Downgrade Reflects Caution

Reflecting these mixed results, the company’s Mojo Score has declined to 40.0, with the Mojo Grade downgraded from Hold to Sell as of 12 February 2026. The financial trend parameter has shifted from very positive to positive, indicating a more cautious stance on the company’s near-term prospects. The market cap grade remains low at 4, consistent with its micro-cap status and limited liquidity.

Stock Price and Market Performance

On 13 February 2026, Aayush Wellness closed at ₹35.00, down 3.42% from the previous close of ₹36.24. The stock’s 52-week high stands at ₹267.30, while the 52-week low is ₹29.80, highlighting significant volatility over the past year. Intraday trading ranged between ₹34.43 and ₹36.00, reflecting investor uncertainty amid the mixed earnings report.

Long-Term Returns Outpace Sensex Despite Recent Weakness

Despite recent underperformance, Aayush Wellness has delivered exceptional long-term returns. Over the past three years, the stock has surged by 2004.38%, vastly outperforming the Sensex’s 37.03% gain. Even over five and ten years, returns of 1536.74% and 1229.08% respectively dwarf the benchmark’s 60.65% and 260.25% gains. However, the short-term picture is less favourable, with year-to-date returns down 47.68% compared to a modest 2.83% decline in the Sensex, and a one-year return of -41.58% versus the Sensex’s 8.76% rise.

Industry and Sector Context

Aayush Wellness operates within the FMCG sector, a space characterised by intense competition and evolving consumer preferences. The sector has generally seen steady growth, but margin pressures have been common due to rising input costs and inflationary trends. Against this backdrop, the company’s ability to grow sales is commendable, but the sharp margin contraction raises questions about cost management and operational efficiency.

Financial Trend Analysis

The company’s financial trend score has declined from 23 to 11 over the past three months, signalling a moderation in momentum. While revenue growth remains positive, the deteriorating profitability metrics suggest that the company is facing challenges in converting sales into sustainable earnings. This shift from a very positive to a positive financial trend indicates a need for cautious monitoring by investors.

Valuation and Investor Sentiment

Given the recent downgrade and mixed earnings, investor sentiment has turned cautious. The stock’s sharp decline year-to-date and over the past month reflects this sentiment. The current price of ₹35.00 is closer to the 52-week low than the high, suggesting limited upside in the near term without a clear turnaround in margins and earnings.

Outlook and Conclusion

While Aayush Wellness Ltd has demonstrated strong revenue growth and impressive long-term returns, the recent quarterly results highlight significant margin pressures and earnings contraction. The downgrade in Mojo Grade to Sell reflects these concerns, signalling that investors should exercise caution. The company’s ability to improve operating efficiency and restore profitability will be critical to reversing the current negative trend.

Investors should weigh the company’s strong historical performance against the recent financial challenges and consider alternative FMCG stocks with more stable margin profiles and positive earnings momentum.

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