Saraswati Commercial (India) Ltd Reports Strong Quarterly Financial Turnaround

Quarterly Financial Performance: A Robust Rebound

The latest quarterly results reveal a striking improvement in Saraswati Commercial’s financial health. Profit before tax excluding other income (PBT LESS OI) soared to ₹30.04 crores, marking an extraordinary growth of 355.3% compared to the average of the preceding four quarters. Similarly, the company’s net profit (PAT) surged by 359.8% to ₹24.75 crores, underscoring a strong bottom-line recovery.

Net sales also exhibited a healthy expansion, rising 24.8% to ₹32.69 crores relative to the previous four-quarter average. This revenue growth is particularly noteworthy given the broader NBFC sector’s cautious environment, where many peers have struggled to maintain momentum amid tightening credit conditions and regulatory scrutiny.

Financial Trend Shift: From Flat to Very Positive

MarketsMOJO’s proprietary Financial Trend parameter for Saraswati Commercial has shifted dramatically from a flat stance to a very positive outlook within the last three months. The score improved from a mere 2 to a robust 25, reflecting the company’s enhanced operational efficiency and profitability. This trend change is a critical indicator for investors, signalling that the company’s recent strategic initiatives and market positioning are beginning to yield tangible results.

Moreover, the company’s Mojo Score currently stands at 27.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 2 June 2025. This upgrade, while still cautious, recognises the improving fundamentals and the potential for further recovery if the positive momentum sustains.

Comparative Performance: Stock vs Sensex

Despite the recent quarterly gains, Saraswati Commercial’s stock price performance over shorter time frames remains subdued relative to the broader market. Year-to-date, the stock has declined by 4.09%, compared with a 2.70% fall in the Sensex. Over the past month, the stock’s decline of 5.58% notably outpaces the Sensex’s 0.85% drop, reflecting lingering investor caution.

However, the company’s long-term returns paint a vastly different picture. Over a 3-year horizon, Saraswati Commercial has delivered an impressive 356.66% return, dwarfing the Sensex’s 37.21% gain. The 5-year and 10-year returns are even more striking, at 1,238.47% and an extraordinary 148,528.64% respectively, underscoring the stock’s historical capacity for substantial wealth creation despite recent volatility.

Valuation and Market Metrics

Currently trading at ₹12,247 per share, Saraswati Commercial is positioned well above its 52-week low of ₹9,215 but remains significantly below its 52-week high of ₹17,889.80. The stock’s day range on 13 February 2026 was between ₹12,005 and ₹12,300, with a marginal day decline of 0.32%. The company’s market cap grade is rated 4, indicating a micro-cap status with associated liquidity and volatility considerations.

Sector Context and Outlook

The NBFC sector continues to face headwinds from regulatory tightening, rising interest rates, and cautious credit demand. Against this backdrop, Saraswati Commercial’s ability to post very positive quarterly financials is a testament to its operational resilience and strategic focus. The absence of any key negative triggers in the latest quarter further bolsters confidence in the company’s near-term prospects.

Investors should, however, remain mindful of the sector’s cyclical nature and the company’s valuation volatility. The recent upgrade in financial trend and improved profitability metrics suggest that Saraswati Commercial is navigating these challenges better than many peers, but sustained performance will be critical to justify a higher rating and attract broader market participation.

Investor Takeaway: Balancing Opportunity and Risk

Saraswati Commercial’s recent quarterly results mark a significant inflection point, with strong revenue growth and margin expansion reversing a previously flat financial trend. The company’s ability to deliver a 355% increase in PBT and a 360% rise in PAT within a single quarter is a rare feat in the current NBFC landscape.

Nonetheless, the stock’s short-term price performance and lingering Strong Sell Mojo Grade indicate that caution remains warranted. Investors should weigh the company’s improving fundamentals against sector risks and valuation considerations. Those with a higher risk appetite may view the current phase as an entry opportunity ahead of a potential sustained recovery, while more conservative investors might prefer to monitor subsequent quarters for confirmation of trend stability.

In summary, Saraswati Commercial (India) Ltd is emerging from a challenging period with encouraging signs of financial strength. Its long-term track record of exceptional returns combined with the recent positive quarterly momentum could position it favourably if the company continues to execute effectively in a demanding NBFC environment.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →