Key Events This Week
9 Feb: Stock opens at Rs.11.25, down 2.26% amid broader Sensex gains
10 Feb: Q3 FY26 results reveal operational struggles masked by other income; stock rebounds 7.64%
11 Feb: Positive Q4 financial turnaround announced; stock surges 10.07%
12 Feb: Continued strong gains of 9.60% despite Sensex decline
13 Feb: Week closes at Rs.15.43, up 5.61% on heavy volume; Sensex falls 1.40%
9 February 2026: Weak Start Amid Sensex Rally
Bihar Sponge Iron began the week on a subdued note, closing at Rs.11.25, down 2.26% from the previous Friday’s close of Rs.11.51. This decline contrasted with the Sensex’s strong 1.04% gain to 37,113.23 points, reflecting initial investor caution. The stock’s volume was relatively low at 36,510 shares, indicating limited trading interest ahead of the company’s quarterly results.
10 February 2026: Q3 Results Reveal Operational Challenges
The company released its Q3 FY26 results, which highlighted operational struggles despite a cushioning effect from other income. Net sales growth was modest, and core business profitability remained under pressure. However, the market responded positively, with the stock rebounding sharply by 7.64% to close at Rs.12.11 on heavy volume of 175,766 shares. The Sensex also advanced 0.25% to 37,207.34, but Bihar Sponge Iron’s outperformance was notable.
11 February 2026: Positive Q4 Financial Turnaround Spurs Rally
On 11 February, Bihar Sponge Iron announced a significant financial turnaround for Q4 December 2025. The company reported a 29.04% increase in net sales over the last six months, reaching ₹151.06 crores. Profitability metrics improved markedly, with PBDIT losses narrowing to ₹-1.15 crores and a positive PAT of ₹6.21 crores, supported by a quarterly EPS of ₹0.69. Despite ongoing reliance on non-operating income, the results signalled operational progress.
The stock responded enthusiastically, surging 10.07% to close at Rs.13.33 on a volume of 217,087 shares. The Sensex gained a modest 0.13% to 37,256.72, underscoring Bihar Sponge Iron’s strong relative performance amid a broadly flat market.
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12 February 2026: Continued Gains Despite Market Weakness
The bullish momentum extended into 12 February, with Bihar Sponge Iron climbing 9.60% to Rs.14.61 on a surge in volume to 617,251 shares. This advance came despite a 0.56% decline in the Sensex to 37,049.40, highlighting the stock’s resilience amid broader market weakness. The company’s improving operational metrics and positive earnings outlook likely underpinned investor confidence.
13 February 2026: Week Closes Strong on Heavy Volume
On the final trading day of the week, Bihar Sponge Iron added another 5.61% to close at Rs.15.43, marking the highest price of the week. The volume peaked at 641,070 shares, reflecting heightened investor interest. Meanwhile, the Sensex fell sharply by 1.40% to 36,532.48, underscoring the stock’s significant outperformance. The week’s 34.06% gain stands in stark contrast to the Sensex’s 0.54% decline, signalling a strong recovery for the company.
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Daily Price Comparison: Bihar Sponge Iron vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.11.25 | -2.26% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.12.11 | +7.64% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.13.33 | +10.07% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.14.61 | +9.60% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.15.43 | +5.61% | 36,532.48 | -1.40% |
Key Takeaways
Strong Financial Turnaround: Bihar Sponge Iron’s Q4 results marked a significant improvement with net sales rising 29.04% over six months and a positive PAT of ₹6.21 crores. This turnaround was a key catalyst for the stock’s sharp weekly gains.
Operational Challenges Persist: Despite progress, the company’s core business remains loss-making with a negative PBDIT margin of -1.32%. Heavy reliance on non-operating income, which accounted for 134.78% of PBT, raises concerns about sustainability.
Market Outperformance: The stock outpaced the Sensex by a wide margin, gaining 34.06% versus the index’s 0.54% decline. This reflects strong investor appetite for the company’s improving fundamentals despite sector headwinds.
Volume Surge Indicates Renewed Interest: Trading volumes increased substantially midweek, peaking at over 6.4 lakh shares on Friday, signalling heightened market participation and confidence in the turnaround story.
Conclusion
Bihar Sponge Iron Ltd’s week was defined by a remarkable price rally fuelled by a positive financial turnaround and improving operational metrics. The company’s ability to grow net sales robustly and report a positive PAT after a period of losses has been well received by the market, resulting in a 34.06% weekly gain that significantly outperformed the Sensex’s decline. However, the persistence of operating losses and dependence on non-operating income temper the optimism, suggesting that while the turnaround is promising, it remains tentative. Investors should continue to monitor the company’s operational progress and sector dynamics closely to assess the durability of this recovery.
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