Hisar Metal Industries Ltd Reports Positive Financial Turnaround in Q4 Dec 2025

Quarterly Financial Performance: A Shift to Positive Territory

In the latest quarter, Hisar Metal Industries Ltd recorded its highest net sales at ₹68.12 crores, marking a substantial improvement over previous quarters. This surge in revenue was accompanied by a rise in profitability, with profit before tax (excluding other income) reaching ₹1.52 crores and profit after tax climbing to ₹1.35 crores. Earnings per share (EPS) also peaked at ₹2.50, reflecting enhanced shareholder value.

The company’s operating profit to interest ratio improved markedly to 2.65 times, the highest in recent periods, indicating better coverage of interest expenses through operational earnings. This improvement is a positive sign of financial health and operational efficiency, especially in a capital-intensive industry like iron and steel products.

Balance Sheet Strength and Efficiency Metrics

Hisar Metal Industries has also strengthened its balance sheet, with the debt-equity ratio at a low 1.07 times for the half-year, the lowest in recent history. This reduction in leverage reduces financial risk and provides the company with greater flexibility to navigate market volatility.

Efficiency metrics have shown encouraging trends as well. The debtors turnover ratio improved to 5.03 times, the highest recorded, suggesting enhanced collection efficiency and better working capital management. These factors collectively contribute to the company’s improved financial score, which rose to +6 from -7 over the last three months.

Return on Capital Employed Remains a Concern

Despite these positive developments, the company’s return on capital employed (ROCE) for the half-year remains subdued at 9.06%, the lowest in recent periods. This indicates that while operational performance has improved, the company is yet to fully optimise its capital utilisation to generate higher returns. Investors should monitor this metric closely as it is a key indicator of long-term profitability and efficiency.

Stock Price and Market Performance

Hisar Metal Industries’ stock price closed at ₹160.90 on 10 Feb 2026, down slightly from the previous close of ₹165.00. The stock traded within a range of ₹160.90 to ₹171.00 during the day. Over the past 52 weeks, the share price has fluctuated between ₹150.20 and ₹228.00, reflecting volatility amid sectoral and macroeconomic factors.

Comparing the stock’s returns to the broader Sensex index reveals a mixed picture. While the Sensex has delivered a 7.97% return over the past year, Hisar Metal Industries has declined by 21.44% in the same period. Over longer horizons, the stock has underperformed the Sensex, with a 3-year return of -9.78% versus the Sensex’s 38.25%, and a 10-year return of 893.21% compared to the Sensex’s 249.97%. This long-term outperformance is noteworthy but recent underperformance highlights near-term challenges.

Mojo Score and Analyst Ratings

The company’s MarketsMOJO score currently stands at 29.0, categorised as a Strong Sell, an upgrade from the previous Sell rating on 13 Nov 2025. This rating reflects the mixed financial signals: while operational and profitability metrics have improved, concerns remain over capital efficiency and stock price momentum. The market capitalisation grade is 4, indicating a mid-sized company within its sector.

Industry Context and Outlook

The iron and steel products sector continues to face headwinds from fluctuating raw material costs, global demand uncertainties, and regulatory pressures. Hisar Metal Industries’ recent financial improvements suggest the company is adapting well to these challenges through better cost control and operational efficiencies.

However, the relatively low ROCE and recent stock underperformance compared to the Sensex indicate that the company must sustain and build on these gains to regain investor confidence fully. Market participants will be watching closely for the next quarterly results to confirm whether this positive trend is sustainable.

Investor Takeaway

For investors, the recent quarter’s positive financial performance offers a cautiously optimistic outlook. The highest-ever quarterly net sales and profitability metrics are encouraging signs of recovery. Yet, the Strong Sell Mojo Grade and subdued capital returns counsel prudence.

Investors should weigh the company’s improving operational metrics against its valuation and sector risks. Those with a higher risk appetite may consider monitoring the stock for a potential turnaround, while more conservative investors might explore alternative opportunities within the iron and steel sector or broader market.

Conclusion

Hisar Metal Industries Ltd’s financial trend reversal in Q4 Dec 2025 marks a significant milestone after a period of negative performance. The company’s ability to sustain revenue growth, improve profitability, and manage debt effectively will be critical in shaping its medium-term prospects. While challenges remain, the recent quarter provides a foundation for potential recovery in a competitive and cyclical industry.

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