Quarterly Financial Performance: A Stark Downturn
Hexa Tradex’s latest quarterly results reveal a pronounced weakening in core financial indicators. The company posted a net profit after tax (PAT) of ₹-4.35 crores for the quarter, representing a staggering fall of 181.1% compared to its previous four-quarter average. This negative PAT underscores the operational and financial pressures the company is currently facing.
Further compounding concerns, the Profit Before Depreciation, Interest and Taxes (PBDIT) plunged to ₹-3.86 crores, marking the lowest level recorded in recent quarters. Similarly, Profit Before Tax excluding Other Income (PBT less OI) also hit a nadir at ₹-4.52 crores, signalling that core business operations are under significant strain without the cushion of ancillary income streams.
On the earnings front, the company’s Earnings Per Share (EPS) dropped to ₹-0.79, the lowest in recent history, reflecting the deep losses incurred during the quarter. This EPS contraction is a critical metric for shareholders, indicating diminished returns and heightened risk.
Financial Trend Shift and Market Implications
The financial trend score for Hexa Tradex has deteriorated sharply from a neutral 0 to a negative -9 over the past three months, signalling a clear shift in the company’s performance trajectory. This negative trend is a red flag for investors, highlighting the need for close monitoring of the company’s operational turnaround efforts and strategic initiatives.
Despite the quarterly setbacks, Hexa Tradex’s stock price showed a modest intraday gain of 0.73% on 6 February 2026, closing at ₹161.97, slightly above the previous close of ₹160.80. The stock traded within a narrow range of ₹160.00 to ₹161.99 during the session, reflecting cautious investor sentiment amid the negative earnings backdrop.
Long-Term Performance Context: Mixed Returns Against Sensex
When viewed against the broader market benchmark, the BSE Sensex, Hexa Tradex’s returns present a mixed picture. Over the past week, the stock marginally outperformed the Sensex with a 0.73% gain versus the index’s 0.71%. However, over longer horizons, the stock has lagged significantly. Year-to-date, Hexa Tradex is down 0.63%, while the Sensex has declined 2.40%, indicating relative resilience in the short term.
More concerning is the one-year performance, where Hexa Tradex has fallen 18.87%, contrasting sharply with the Sensex’s 8.04% gain. This underperformance highlights sector-specific or company-specific challenges that have weighed on investor confidence. Over three years, the stock has managed a modest 4.53% gain, far behind the Sensex’s robust 43.55% rise. Yet, over five and ten years, Hexa Tradex has delivered exceptional returns of 278.88% and 899.81% respectively, significantly outpacing the Sensex’s 70.87% and 240.51% gains, underscoring its historical growth potential despite recent setbacks.
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Sectoral and Industry Positioning
Operating within the NBFC sector, Hexa Tradex faces a competitive and regulatory environment that has been evolving rapidly. The sector has witnessed mixed fortunes, with some players benefiting from credit growth and others grappling with asset quality pressures. Hexa Tradex’s recent negative financial trend contrasts with some peers who have managed margin expansions and revenue growth, highlighting the company’s current operational challenges.
Margin contraction is particularly evident in the latest quarter, with the company’s PBDIT and PBT less OI figures signalling deteriorating profitability. This contraction may be attributed to increased provisioning, higher borrowing costs, or subdued lending volumes, factors that investors should scrutinise closely in upcoming earnings releases.
Valuation and Market Capitalisation Insights
Hexa Tradex currently holds a market capitalisation grade of 4, reflecting its mid-tier valuation status within the NBFC universe. The stock’s 52-week price range of ₹147.26 to ₹241.56 indicates significant volatility, with the current price near the lower end of this spectrum. This valuation compression aligns with the company’s recent earnings weakness and negative financial trend.
Investors should weigh the stock’s historical outperformance over the medium to long term against the recent earnings deterioration and sector headwinds. The company’s mojo score of 23.0 and a mojo grade of Strong Sell, recently downgraded from Sell on 1 February 2026, further emphasise the cautious stance adopted by market analysts.
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Investor Takeaways and Outlook
Hexa Tradex’s recent quarterly results and negative financial trend highlight the need for investors to exercise caution. The sharp decline in profitability metrics and EPS signals operational challenges that may take time to resolve. While the stock’s long-term returns have been impressive, the current environment demands a thorough analysis of the company’s strategic response to margin pressures and credit risks.
Comparatively, the stock’s short-term outperformance relative to the Sensex offers some respite, but the one-year underperformance and negative quarterly earnings trend suggest that investors should monitor developments closely before committing fresh capital.
Given the downgrade to a Strong Sell mojo grade and the deteriorating financial trend, risk-averse investors may consider re-evaluating their exposure to Hexa Tradex, especially in light of alternative NBFCs with stronger fundamentals and more stable earnings trajectories.
Conclusion
Hexa Tradex Ltd’s December 2025 quarter results mark a clear inflection point, with a shift from flat to negative financial trends and significant declines in profitability and earnings. While the company’s historical performance has been robust, recent challenges in margin management and core profitability warrant a cautious approach. Investors should balance the stock’s long-term potential against near-term risks and consider peer comparisons to identify more favourable investment opportunities within the NBFC sector.
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