HMT Faces Financial Challenges Amid Declining Sales and Rising Debt Concerns

HMT, a small-cap player in the industrial manufacturing sector, has recently undergone a financial trend adjustment reflecting significant challenges in its performance metrics for the quarter ending September 2025. The company's financial performance has deteriorated, with net sales reported at Rs 25.83 crore, marking a decline of 23.5% compared to the previous four-quarter average. Additionally, the profit before tax (PBT) less other income stands at Rs -55.23 crore, down 10.6%, while the profit after tax (PAT) is recorded at Rs -39.08 crore, also reflecting a 10.2% decline.
The company's debt-equity ratio has reached a concerning level of -0.52 times, indicating a high level of debt relative to equity, while the debtors turnover ratio is at its lowest point of 1.05 times, suggesting inefficiencies in collecting receivables.

In terms of market performance, HMT's stock has shown mixed results compared to the Sensex. Over the past week, HMT's stock returned 1.21%, while the Sensex returned 1.69%. However, on a year-to-date basis, HMT has underperformed with a return of -13.05%, compared to the Sensex's 8.72%. Despite a strong performance over the past five years, the recent trends indicate significant hurdles that the company must address to stabilize its financial standing.