Key Events This Week
27 Jan: Q2 FY26 results reveal 39% profit slump
28 Jan: Sharp decline in quarterly performance amid financial struggles
29 Jan: Continued share price decline to Rs.496.20 (-3.05%)
30 Jan: Slight recovery to Rs.500.05 (+0.78%) as week closes
27 January: Q2 FY26 Profit Slumps 39% as Margin Pressures Mount
Paushak Ltd opened the week on a cautious note, with its share price falling 0.55% to Rs.524.20 despite the Sensex gaining 0.50%. The company reported a significant 39% decline in quarterly profit, signalling intensifying margin pressures. This announcement triggered investor concern, as the profit slump underscored operational challenges and a deteriorating financial outlook. The stock’s modest decline on this day reflected the market’s initial reaction to the disappointing earnings.
28 January: Sharp Decline in Quarterly Performance Amid Financial Struggles
The downward momentum accelerated on 28 January, with Paushak’s stock dropping 2.37% to Rs.511.80, even as the Sensex surged 1.12%. The company’s quarterly results revealed net sales of ₹48.80 crores, the lowest in recent periods, and a PBDIT of ₹11.41 crores, highlighting margin compression. Operating profit to net sales ratio fell to 23.38%, while profit after tax plunged 45.8% to ₹6.17 crores. Earnings per share declined to ₹2.50, signalling diminished shareholder returns. These figures painted a bleak picture of the company’s operational efficiency and profitability.
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29 January: Continued Decline Amid Operational and Liquidity Concerns
On 29 January, Paushak’s share price further declined by 3.05% to Rs.496.20, despite the Sensex rising marginally by 0.22%. The company’s return on capital employed (ROCE) dropped to 10.47%, the lowest in recent history, indicating reduced capital efficiency. Additionally, the debtors turnover ratio fell to 3.83 times, signalling slower collections and potential liquidity pressures. These operational inefficiencies compounded investor worries, contributing to the stock’s continued weakness.
30 January: Slight Recovery as Week Closes
Paushak’s stock saw a modest rebound on the final trading day of the week, gaining 0.78% to close at Rs.500.05. This recovery came despite the Sensex falling 0.22%, suggesting some bargain hunting or short-term technical buying. However, the stock remained well below its week’s opening level and continued to reflect the underlying financial challenges faced by the company.
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Daily Price Comparison: Paushak Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-27 | Rs.524.20 | -0.55% | 35,786.84 | +0.50% |
| 2026-01-28 | Rs.511.80 | -2.37% | 36,188.16 | +1.12% |
| 2026-01-29 | Rs.496.20 | -3.05% | 36,266.59 | +0.22% |
| 2026-01-30 | Rs.500.05 | +0.78% | 36,185.03 | -0.22% |
Key Takeaways from the Week
Negative Financial Trends: Paushak Ltd’s quarterly results revealed a sharp 39% decline in profit and a 45.8% drop in PAT compared to the previous four-quarter average. Operating margins contracted to 23.38%, and ROCE fell to 10.47%, signalling deteriorating profitability and capital efficiency.
Operational Challenges: The decline in debtors turnover ratio to 3.83 times indicates slower receivables collection, which may pressure liquidity. The company’s net sales at ₹48.80 crores were the lowest in recent quarters, reflecting subdued demand or pricing pressures.
Stock Underperformance: The stock fell 5.13% over the week, significantly underperforming the Sensex’s 1.62% gain. This divergence highlights investor caution amid the company’s weakening fundamentals.
Rating and Market Sentiment: MarketsMOJO downgraded Paushak’s Mojo Grade to Strong Sell with a score of 19.0, reflecting heightened risk. The financial trend score deteriorated from -13 to -23 over three months, confirming a very negative outlook.
Conclusion
Paushak Ltd’s week was dominated by disappointing quarterly results and mounting margin pressures that weighed heavily on its share price. Despite a slight recovery on the final trading day, the stock closed the week down 5.13%, lagging the broader market’s positive performance. The company’s declining profitability, operational inefficiencies, and liquidity concerns present significant challenges. Until there is evidence of margin recovery and improved capital utilisation, Paushak’s outlook remains subdued, as reflected in its Strong Sell rating and deteriorating financial trend scores.
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