ARCL Organics Falls 9.79%: Four Key Factors Behind the Sharp Weekly Decline

Feb 14 2026 09:05 AM IST
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ARCL Organics Ltd experienced a turbulent week ending 13 February 2026, with its share price declining 9.79% from Rs.242.00 to Rs.218.30, significantly underperforming the Sensex which fell 0.54% over the same period. The week was marked by a sharp deterioration in quarterly financial results, a downgrade in quality and rating grades, and bearish technical signals, all contributing to heightened investor caution amid challenging sector conditions.

Key Events This Week

09 Feb: Stock opens strong at Rs.246.40 (+1.82%) amid positive market sentiment

11 Feb: Q3 FY26 results reveal sharp loss, raising serious concerns

12 Feb: Financial trend turns negative with steep quarterly performance decline

13 Feb: Quality grade downgraded and rating lowered to Strong Sell; stock closes at Rs.218.30 (-4.98%)

Week Open
Rs.242.00
Week Close
Rs.218.30
-9.79%
Week High
Rs.246.40
vs Sensex
-9.25%

09 February 2026: Positive Start Amid Broader Market Gains

ARCL Organics began the week on a relatively strong note, closing at Rs.246.40, up 1.82% from the previous close. This outperformance contrasted with the Sensex’s 1.04% gain to 37,113.23, reflecting initial investor optimism. The volume was modest at 2,765 shares, indicating cautious participation despite the positive price movement.

11 February 2026: Quarterly Results Spark Concern

The company’s Q3 FY26 results released on 11 February revealed a sharp loss, overshadowing the earlier optimism. ARCL Organics reported a net loss after tax of ₹8.26 crores, a dramatic 277.6% decline compared to prior quarterly averages. Earnings per share plunged to a negative ₹11.01, marking the lowest level in recent history. The stock price reacted negatively, slipping 0.31% to Rs.241.75 despite a surge in volume to 19,422 shares, signalling heightened selling pressure.

12 February 2026: Financial Trend Turns Negative Amid Operational Challenges

On 12 February, the company’s financial trend score plummeted from +28 to -14, reflecting a reversal from positive to negative momentum. Quarterly net sales fell sharply to ₹53.47 crores, the lowest in recent years, while PBDIT turned negative at ₹-0.32 crores and operating profit margin contracted to -0.60%. Despite these setbacks, ARCL Organics maintained a strong half-year ROCE of 22.96% and a healthy debtors turnover ratio of 5.75 times, indicating operational efficiency in capital utilisation and receivables management. The stock price closed at Rs.229.75, down 4.96%, on volume of 12,448 shares, underperforming the Sensex which declined 0.56%.

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13 February 2026: Quality Grade Downgrade and Strong Sell Rating Intensify Pressure

On the final trading day of the week, ARCL Organics faced a further setback as MarketsMOJO downgraded its quality grade from good to average and lowered its rating from Sell to Strong Sell, reflecting deteriorating financial and technical indicators. The downgrade was driven by stagnating returns on equity (20.30%) and capital employed (19.17%), a high tax ratio of 58.78%, and a cautious outlook on earnings sustainability. The stock closed sharply lower at Rs.218.30, down 4.98% on volume of 6,766 shares, significantly underperforming the Sensex’s 1.40% decline. Technical indicators such as weekly Bollinger Bands and MACD signalled bearish momentum, reinforcing the negative sentiment.

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Daily Price Comparison: ARCL Organics vs Sensex

Date Stock Price Day Change Sensex Day Change
2026-02-09 Rs.246.40 +1.82% 37,113.23 +1.04%
2026-02-10 Rs.242.50 -1.58% 37,207.34 +0.25%
2026-02-11 Rs.241.75 -0.31% 37,256.72 +0.13%
2026-02-12 Rs.229.75 -4.96% 37,049.40 -0.56%
2026-02-13 Rs.218.30 -4.98% 36,532.48 -1.40%

Key Takeaways

Significant Weekly Decline: ARCL Organics’ share price fell 9.79% over the week, markedly underperforming the Sensex’s 0.54% decline, reflecting growing investor concerns.

Quarterly Financial Deterioration: The December 2025 quarter revealed a sharp loss with net sales dropping to ₹53.47 crores and a net loss after tax of ₹8.26 crores, signalling operational and profitability challenges.

Quality and Rating Downgrades: The downgrade from good to average quality grade and the shift from Sell to Strong Sell rating underscore fundamental weaknesses and bearish technical indicators.

Operational Strengths Amid Weakness: Despite setbacks, the company maintains a strong half-year ROCE of 22.96% and efficient receivables management, offering some operational resilience.

Overall, ARCL Organics Ltd’s week was dominated by negative financial news and deteriorating market sentiment, leading to a pronounced share price decline and a more cautious outlook from rating agencies and investors alike.

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