Precot Faces Financial Strain Amid Declining Performance Metrics and Rising Interest Expenses

Precot, a microcap player in the Garments & Apparels industry, has recently experienced a financial trend adjustment reflecting a decline in its performance metrics for the quarter ending September 2025. The company's financial performance has shown significant challenges, with a notable drop in profit after tax (PAT) to Rs 7.03 crore, marking a decline of 38.6% compared to the previous four-quarter average. Additionally, the operating profit to interest ratio has reached a concerning low of 2.54 times, indicating increased financial strain.
Net sales for the quarter stood at Rs 213.55 crore, down by 5.1% from the previous four-quarter average, while interest expenses have surged to Rs 9.94 crore, the highest recorded. Other key indicators, such as profit before tax less other income, have also hit a low of Rs 8.30 crore, further underscoring the company's financial difficulties.

In terms of market performance, Precot's stock has faced challenges compared to the Sensex. Over the past year, the stock has declined by 22.95%, while the Sensex has gained 10.38%. However, over a longer horizon, Precot has shown resilience with a remarkable 797.55% increase over the past five years, significantly outperforming the Sensex's 100.09% rise during the same period. This contrast highlights the volatility and potential for recovery in Precot's long-term trajectory.