Key Events This Week
16 Feb: Mixed quarterly results announced with margin pressures and operational losses
16 Feb: Sharp stock price decline of 6.58% amid earnings concerns
20 Feb: Stock rebounds 3.85% on low volume despite Sensex gains
Week Summary: Stock closes at Rs.392.55, down 3.49%, underperforming Sensex (+0.39%)
16 February: Mixed Quarterly Results Trigger Sharp Decline
Gujarat Apollo Industries released its quarterly results for the period ended December 2025, revealing a complex financial picture. The company reported a remarkable 159.55% surge in net sales to ₹16.17 crores compared to the same quarter last year, signalling a strong recovery in demand within its industrial manufacturing segment. However, this top-line growth was overshadowed by significant margin pressures and escalating interest expenses.
Profit after tax for the quarter plunged by 73.0% to ₹0.63 crores, while profit before tax excluding other income deteriorated sharply to a loss of ₹6.43 crores. The extraordinary rise in finance costs, which ballooned by over 108,999,900% to ₹1.09 crores, severely impacted operating profitability. Non-operating income provided some cushion, accounting for 2,481.48% of reported PBT, but this raised concerns about the sustainability of earnings.
The market responded negatively, with the stock price falling 6.58% to close at Rs.380.00 on heavy volume of 3,619 shares, despite the Sensex gaining 0.70% that day. This divergence highlighted investor apprehension about the company’s operational challenges and liquidity constraints, as cash and cash equivalents stood at a modest ₹0.84 crores.
17 February: Modest Recovery on Lower Volume
Following the sharp sell-off, Gujarat Apollo’s shares rebounded modestly by 1.58% to Rs.386.00 on 17 February, albeit on reduced volume of 1,871 shares. The broader market continued its upward trajectory, with the Sensex advancing 0.32%. This partial recovery suggested some bargain hunting or short-term repositioning by investors, though the underlying concerns from the earnings report remained unresolved.
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18-19 February: Continued Pressure Amid Market Volatility
The stock price declined again on 18 February, falling 1.81% to Rs.379.00 on volume of 1,003 shares, while the Sensex rose 0.43%. The following day, 19 February, saw a marginal drop of 0.26% to Rs.378.00 on very low volume of 213 shares, coinciding with a sharp Sensex decline of 1.45%. These movements reflected ongoing investor uncertainty and thin trading activity, with the stock underperforming the benchmark index consistently throughout the week.
20 February: Late-Week Bounce on Minimal Volume
On the final trading day of the week, Gujarat Apollo’s shares surged 3.85% to Rs.392.55, recovering some losses on extremely low volume of just 10 shares. The Sensex also gained 0.41%, closing at 36,674.32. This late-week bounce, while encouraging, was on negligible turnover and did not fully offset the week’s overall decline. The stock ended the week 3.49% lower than the previous Friday’s close, underperforming the Sensex’s 0.39% gain.
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Daily Price Performance vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-16 | Rs.380.00 | -6.58% | 36,787.89 | +0.70% |
| 2026-02-17 | Rs.386.00 | +1.58% | 36,904.38 | +0.32% |
| 2026-02-18 | Rs.379.00 | -1.81% | 37,062.35 | +0.43% |
| 2026-02-19 | Rs.378.00 | -0.26% | 36,523.88 | -1.45% |
| 2026-02-20 | Rs.392.55 | +3.85% | 36,674.32 | +0.41% |
Key Takeaways
Robust Revenue Growth: The company’s 159.55% increase in quarterly net sales demonstrates strong demand recovery and effective sales execution, outpacing sector averages.
Profitability Challenges: Despite higher sales, PAT declined 73.0% quarter-on-quarter, with core operations posting a loss before tax excluding other income. The surge in interest expenses severely impacted margins.
Liquidity Constraints: Cash reserves remain limited at ₹0.84 crores, potentially restricting operational flexibility and growth investments.
Stock Underperformance: The stock fell 3.49% over the week, underperforming the Sensex’s 0.39% gain, reflecting investor caution amid mixed financial signals.
Market Sentiment: The mojo score stands at 17.0 with a Strong Sell grade, indicating negative market sentiment and heightened risk perception.
Conclusion
Gujarat Apollo Industries Ltd’s week was defined by a juxtaposition of strong top-line growth and persistent profitability pressures. The sharp rise in finance costs and operational losses overshadowed the impressive revenue surge, leading to a notable decline in the stock price. While the company’s financial trend score has stabilised, the constrained cash position and reliance on non-operating income to support earnings raise concerns about sustainability. The stock’s underperformance relative to the Sensex during the week underscores investor caution. Moving forward, the company’s ability to manage costs and improve operational efficiency will be critical to restoring confidence and reversing the recent downtrend.
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