Quarterly Financial Performance: A Shift to Flat Growth
Reliance Chemotex’s latest quarterly results reveal a significant moderation in its financial trend. The company’s financial trend score has declined sharply from 6 to 0 over the past three months, signalling a transition from positive growth to a flat performance phase. This shift is primarily driven by the company’s net sales for the quarter, which have dropped to ₹81.94 crores — the lowest recorded in recent periods. This contraction in sales volume has offset gains made in profitability, tempering overall investor enthusiasm.
While the company’s PAT for the nine months ending December 2025 stands at ₹3.51 crores, reflecting a strong 59.55% year-on-year growth, the quarterly sales dip suggests challenges in sustaining top-line momentum. Margin expansion, which had been a feature of previous quarters, appears to have stalled, with the flat financial trend indicating limited improvement in operational efficiencies or pricing power during the latest quarter.
Stock Price and Market Performance
On the stock market front, Reliance Chemotex Industries Ltd closed at ₹141.05 on 11 February 2026, up 1.47% from the previous close of ₹139.00. The stock’s intraday range was between ₹139.00 and ₹149.30, reflecting some volatility amid mixed investor sentiment. Over the past 52 weeks, the stock has traded between a low of ₹110.15 and a high of ₹211.65, indicating a wide trading band and significant price correction from its peak.
Comparing the stock’s returns with the broader Sensex index reveals a nuanced picture. Reliance Chemotex has outperformed the Sensex in the short term, delivering a 12.03% return over the past week versus the Sensex’s 0.50%. Over one month, the stock gained 2.96% compared to the Sensex’s 0.79%, and year-to-date returns stand at 5.70% against the Sensex’s negative 1.16%. However, the longer-term performance tells a different story, with the stock declining 26.90% over the past year while the Sensex rose 10.41%. Over three years, Reliance Chemotex’s returns are down 6.06%, contrasting with the Sensex’s 38.81% gain. On a five- and ten-year horizon, the stock has delivered 84.38% and 228.02% returns respectively, slightly lagging the Sensex’s 63.46% and 267.00% gains.
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Mojo Score and Analyst Ratings
MarketsMOJO currently assigns Reliance Chemotex a Mojo Score of 31.0, categorising it with a 'Sell' grade. This represents an upgrade from the previous 'Strong Sell' rating issued on 25 August 2025, reflecting some improvement in the company’s outlook despite the recent flat financial trend. The Market Cap Grade stands at 4, indicating a mid-tier market capitalisation relative to peers in the Garments & Apparels sector.
The downgrade in the financial trend from positive to flat has tempered analyst enthusiasm, with concerns centring on the company’s ability to revive sales growth and margin expansion in the near term. Investors are advised to weigh the strong PAT growth against the subdued sales performance and consider the stock’s volatility and mixed returns relative to the broader market.
Industry Context and Sectoral Comparison
Within the Garments & Apparels sector, Reliance Chemotex faces stiff competition amid fluctuating consumer demand and rising input costs. The sector has generally experienced moderate growth, supported by increasing domestic consumption and export opportunities. However, Reliance Chemotex’s flat quarterly sales contrast with some peers who have managed to sustain or improve revenue growth, highlighting company-specific challenges.
Margin pressures in the sector have been a common theme, driven by inflationary raw material prices and supply chain disruptions. Reliance Chemotex’s inability to expand margins in the latest quarter aligns with these broader headwinds, though its strong PAT growth over nine months suggests some operational resilience or cost control measures have been effective.
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Investor Takeaways and Outlook
Reliance Chemotex’s recent quarterly results underscore a critical juncture for the company. The flat financial trend and lowest quarterly net sales in recent history raise questions about the sustainability of its growth trajectory. However, the substantial PAT growth over nine months indicates underlying profitability improvements that could provide a foundation for recovery.
Investors should monitor upcoming quarterly results closely for signs of sales stabilisation or margin improvement. The stock’s recent short-term outperformance relative to the Sensex may offer tactical opportunities, but the longer-term underperformance and sector challenges warrant a cautious approach.
Given the current Mojo Grade of 'Sell' and the flat financial trend, a conservative stance is advisable until clearer evidence of a turnaround emerges. Diversification within the Garments & Apparels sector and consideration of fundamentally stronger alternatives may better serve investors seeking growth and stability.
Technical and Valuation Considerations
At ₹141.05, the stock trades significantly below its 52-week high of ₹211.65, suggesting valuation compression amid recent performance concerns. The 52-week low of ₹110.15 provides a reference point for downside risk, while the intraday volatility highlights the need for disciplined entry and exit strategies.
Valuation metrics relative to peers and historical averages should be analysed in conjunction with fundamental trends to assess risk-reward balance. The company’s mid-cap status and market cap grade of 4 indicate moderate liquidity and investor interest, factors that may influence price movements in the near term.
Conclusion
Reliance Chemotex Industries Ltd’s flat quarterly performance marks a departure from its earlier positive momentum, with sales contraction offsetting strong profit growth. The company faces sectoral headwinds and company-specific challenges that have led to a downgrade in its financial trend and a cautious analyst outlook. While short-term stock returns have been encouraging, longer-term underperformance relative to the Sensex and peers suggests investors should remain vigilant.
Careful monitoring of upcoming financial results and sector developments will be essential to gauge the company’s recovery prospects. For now, the 'Sell' Mojo Grade and flat financial trend advise prudence, with investors encouraged to explore superior alternatives within the Garments & Apparels space.
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