Akar Auto Industries Faces Financial Challenges Amidst Strong Cash Flow and Dividend Payouts

Akar Auto Industries has recently undergone a financial trend adjustment, reflecting challenges in its performance metrics for the quarter ending September 2025. The company reported a significant decline in key financial indicators, with net sales dropping to Rs 87.27 crore, marking a low point for the period. Additionally, the profit after tax (PAT) fell sharply to Rs 0.54 crore, a decrease of 67.9% compared to the previous four-quarter average. The earnings per share (EPS) also reached a low of Rs 0.50, while the profit before depreciation, interest, and taxes (PBDIT) was recorded at Rs 5.42 crore, the lowest in recent quarters.
On a more positive note, Akar Auto Industries achieved its highest operating cash flow at Rs 25.84 crore and declared a dividend per share of Rs 0.60, indicating some strengths in cash management and shareholder returns.

In terms of market performance, Akar Auto's stock has experienced volatility, with a current price of Rs 143.30, down from a previous close of Rs 154.85. Over the past year, the company has outperformed the Sensex, with a return of 42.80% compared to the index's 9.53%. Notably, over a five-year period, Akar Auto has delivered an impressive return of 818.00%, significantly surpassing the Sensex's 91.74%.