Key Events This Week
9 Feb: Q3 FY26 results reveal sharp profitability plunge due to other income dominance
10 Feb: Flat quarterly performance reported amid mixed financial trends and mojo grade upgrade
13 Feb: Stock closes the week at ₹648.35, up 4.71% versus Sensex decline
9 February: Quarterly Results Highlight Profitability Shift
Graphite India’s week began on a positive note with the release of its Q3 FY26 results. The company reported a sharp plunge in profitability, primarily driven by a dominant share of other income in earnings. Despite this, the stock surged 2.94% to close at ₹637.40, outperforming the Sensex’s 1.04% gain that day. The market appeared to focus on the underlying operational improvements rather than the headline profit dip.
10 February: Mixed Financial Trends and Mojo Grade Upgrade
The following day, Graphite India announced a flat quarterly performance amid mixed financial trends. The company’s Profit Before Tax excluding Other Income (PBT LESS OI) soared 148.48% to ₹16.00 crores, while Profit After Tax (PAT) for the quarter jumped 533.2% to ₹86.65 crores. Net sales rose 22.75% to ₹642.00 crores, signalling a stabilisation after prior negative trends.
However, the nine-month PAT declined 27.75% to ₹297.65 crores, and operational ratios such as the debtors turnover ratio remained subdued at 4.36 times, indicating ongoing working capital challenges. The heavy reliance on non-operating income, which accounted for 87.10% of profit before tax, raised concerns about earnings sustainability.
Reflecting these nuanced results, the company’s mojo grade was upgraded from Sell to Hold, with the mojo score improving to 58.0. The stock responded strongly, gaining 4.71% to ₹667.40, well ahead of the Sensex’s modest 0.25% rise.
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11 & 12 February: Consolidation Amid Market Fluctuations
On 11 February, the stock price remained largely flat, closing marginally down by 0.02% at ₹667.25, while the Sensex inched up 0.13%. The subdued volume of 83,427 shares suggested a pause in momentum after the previous day’s strong gains.
The next day, 12 February, Graphite India edged up 0.43% to ₹670.10 despite the Sensex falling 0.56%. This divergence highlighted the stock’s relative strength amid broader market weakness. The trading volume increased to 105,297 shares, indicating renewed investor interest.
13 February: Profit Taking Amid Broader Market Sell-Off
The week concluded with a notable correction as the stock declined 3.25% to ₹648.35, underperforming the Sensex’s sharper 1.40% fall. The volume of 96,696 shares reflected active selling pressure, likely driven by profit booking after the week’s strong rally. Despite this, the stock closed the week with a healthy 4.71% gain, comfortably outperforming the benchmark index.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.637.40 | +2.94% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.667.40 | +4.71% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.667.25 | -0.02% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.670.10 | +0.43% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.648.35 | -3.25% | 36,532.48 | -1.40% |
Key Takeaways from the Week
Positive Signals: The company’s quarterly results demonstrated a strong rebound in operational profitability, with PBT excluding other income rising 148.48% and PAT surging 533.2% for the quarter. Net sales growth of 22.75% further supports a stabilising demand environment. The mojo grade upgrade to Hold and improved mojo score of 58.0 reflect cautious optimism.
Cautionary Notes: The nine-month PAT decline of 27.75% and the high proportion of non-operating income (87.10%) in profits highlight ongoing challenges in sustaining core earnings. The low debtors turnover ratio of 4.36 times signals potential working capital constraints. The stock’s correction on 13 February suggests profit-taking amid broader market weakness.
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Conclusion: A Week of Mixed Signals but Overall Outperformance
Graphite India Ltd. demonstrated resilience this week, delivering a 4.71% gain against a declining Sensex. The company’s quarterly results and mojo grade upgrade provided a foundation for the rally, although operational challenges and reliance on non-operating income temper the outlook. The stock’s recent volatility and profit-taking suggest investors remain cautious, awaiting confirmation of sustained core earnings growth and improved working capital management.
Overall, the week’s developments position Graphite India at a critical juncture, balancing positive momentum with underlying risks. Market participants will likely monitor upcoming quarters closely to assess whether the company can convert its recent gains into a durable recovery.
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