Garg Furnace Reports Strong Profit Growth Amid Declining Net Sales Performance

Garg Furnace, a microcap player in the iron and steel products industry, has recently undergone a financial trend adjustment reflecting its performance in the quarter ending September 2025. The company reported a notable increase in its financial score, driven by several key metrics that highlight its operational strengths.
The profit after tax (PAT) for the quarter reached Rs 2.74 crore, marking a significant growth of 49.7% compared to the previous four-quarter average. Additionally, the company achieved its highest quarterly PBDIT at Rs 3.11 crore, alongside an operating profit to net sales ratio of 5.07%, which is also at a peak. Furthermore, the profit before tax, excluding other income, stood at Rs 2.65 crore, indicating robust operational efficiency.

However, Garg Furnace faced challenges with net sales, which fell to Rs 61.38 crore, reflecting a decline of 5.4% against the previous four-quarter average. This dip in sales could be a concern as it contrasts with the otherwise positive financial indicators.

In terms of market performance, Garg Furnace has experienced a mixed return profile compared to the Sensex. Over the past year, the stock has seen a decline of 46.18%, while the Sensex has gained 9.54%. However, over a three-year period, Garg Furnace has outperformed the index with a return of 229.09%, showcasing its potential in the long term.