Gravity (India) Ltd Reports Very Positive Quarterly Financial Performance Amid Strong Long-Term Returns

Quarterly Financial Highlights

In the December 2025 quarter, Gravity (India) Ltd posted its highest-ever quarterly figures across several key financial parameters. The Profit Before Depreciation, Interest, and Tax (PBDIT) reached ₹6.10 crores, marking a significant increase compared to previous quarters. Similarly, Profit Before Tax excluding Other Income (PBT less OI) stood at ₹6.02 crores, while the Profit After Tax (PAT) surged to ₹4.50 crores. This translated into an Earnings Per Share (EPS) of ₹5.00, the highest recorded by the company to date.

These figures represent a substantial improvement over the last three months, with the financial performance score rising from 15 to 21, reflecting a very positive trend. This upward trajectory is particularly noteworthy given the competitive pressures within the Garments & Apparels industry, where margin expansion has been challenging due to fluctuating raw material costs and changing consumer preferences.

Revenue Growth and Margin Expansion

While specific revenue numbers for the quarter have not been disclosed, the significant rise in PBDIT and PAT suggests that Gravity (India) Ltd has managed to enhance its operational efficiency and cost management. The margin expansion is evident from the improved profitability metrics, indicating better absorption of fixed costs and possibly favourable product mix shifts. This is a positive sign for investors seeking companies that can sustain earnings growth despite sectoral headwinds.

Stock Performance Relative to Market Benchmarks

Gravity (India) Ltd’s stock price closed at ₹11.97 on 9 Feb 2026, up 5.00% from the previous close of ₹11.40. The stock’s 52-week high stands at ₹15.93, with a low of ₹3.94, reflecting considerable volatility but also strong upside potential over the past year.

When compared to the broader market, Gravity’s returns have been exceptional over longer time horizons. The stock has delivered a staggering 220.91% return over the past year, vastly outperforming the Sensex’s 7.99% gain. Over five years, the stock’s cumulative return of 703.36% dwarfs the Sensex’s 63.81%, underscoring Gravity’s capacity for substantial wealth creation for long-term investors. Even on a 10-year basis, the stock’s 378.80% return comfortably exceeds the Sensex’s 250.03%.

Mojo Score and Rating Upgrade

Reflecting the improved financials and market performance, Gravity (India) Ltd’s Mojo Score has risen to 56.0, earning the company a Mojo Grade of “Hold” as of 4 Feb 2026. This represents an upgrade from the previous “Sell” rating, signalling a more favourable outlook from analysts. The Market Cap Grade remains at 4, consistent with its micro-cap status within the Garments & Apparels sector.

The upgrade in rating is supported by the company’s ability to deliver its highest quarterly profits and earnings per share, which investors and analysts alike view as a sign of operational resilience and growth potential. The “Hold” rating suggests that while the stock is no longer a sell candidate, investors should monitor upcoming quarters for sustained performance before considering a more aggressive buy stance.

Industry Context and Competitive Positioning

The Garments & Apparels sector has faced mixed conditions recently, with fluctuating raw material prices and evolving consumer trends impacting margins. Gravity (India) Ltd’s very positive financial trend indicates that it has navigated these challenges effectively, possibly through product innovation, cost control, or enhanced distribution channels.

Its strong quarterly performance contrasts with some peers who have struggled to maintain margin stability, positioning Gravity as a relatively attractive micro-cap within the sector. This is further reinforced by its inclusion in thematic lists such as Reliable Performers, which highlight companies with consistent delivery and staying power.

Outlook and Investor Considerations

Looking ahead, Gravity (India) Ltd’s ability to sustain its very positive financial trend will be critical. Investors should watch for continued margin expansion, revenue growth, and consistent quarterly earnings improvements. The company’s recent performance suggests it is on a promising trajectory, but the competitive nature of the Garments & Apparels sector means vigilance is warranted.

Given the stock’s strong historical returns relative to the Sensex and the recent upgrade in Mojo Grade, Gravity offers an intriguing proposition for investors seeking exposure to a micro-cap with demonstrated growth potential and improving fundamentals. However, the “Hold” rating advises a balanced approach, with an emphasis on monitoring future quarterly results for confirmation of sustained momentum.

Summary

Gravity (India) Ltd’s December 2025 quarter marks a significant milestone with record PBDIT, PBT less OI, PAT, and EPS figures, driving a very positive financial trend. The company’s stock has outperformed the broader market substantially over multiple time frames, and the recent upgrade from “Sell” to “Hold” reflects growing analyst confidence. While challenges remain in the Garments & Apparels sector, Gravity’s operational improvements and strong returns position it as a noteworthy stock for investors seeking growth in the lifestyle segment.

Investors should continue to track quarterly earnings releases and sector developments to assess whether Gravity can maintain its upward momentum and potentially warrant a further upgrade in rating.

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