Newtrac Foods Faces Significant Financial Challenges Amidst Declining Sales and Profitability

Newtrac Foods & Beverages, a microcap player in the Trading & Distributors sector, has recently undergone a financial trend adjustment reflecting its challenging performance in the quarter ending September 2025. The company's financial metrics indicate significant struggles, particularly in net sales and profitability. Over the latest six months, net sales have declined to Rs 13.37 crore, marking a substantial drop of 62.14%. Similarly, the profit after tax (PAT) has also decreased to Rs 0.07 crore, mirroring the same percentage decline.
On a more positive note, Newtrac Foods has achieved a notable return on capital employed (ROCE) of 22.95%, which stands out as a strong point amidst the overall negative performance. However, other indicators such as PBDIT and profit before tax (PBT) have reached their lowest levels, with figures of Rs -0.48 crore and Rs -0.54 crore, respectively. The earnings per share (EPS) has also dipped to Rs -0.09.

In terms of market performance, Newtrac Foods has underperformed compared to the Sensex over various time frames. The stock has seen a year-to-date decline of 31.61%, while the Sensex has gained 8.45%. Over the past year, Newtrac Foods has experienced a drop of 36.12%, contrasting sharply with the Sensex's 9.58% increase. This disparity highlights the challenges the company faces in regaining market traction.