Quarterly Financial Performance Highlights
In the quarter ended December 2025, Sheetal Cool Products Ltd reported net sales of ₹63.88 crores, marking a robust growth of 25.23% compared to the corresponding period last year. This surge in top-line revenue is a marked improvement from the company’s previous quarters, where growth had been subdued or negative. The increase in sales volume and improved market penetration have been key drivers behind this uplift.
Profit before tax (PBT) excluding other income soared to ₹5.30 crores, reflecting a staggering growth of 142.01%. This sharp rise indicates not only higher sales but also better cost management and operational efficiencies. Correspondingly, the net profit after tax (PAT) for the quarter stood at ₹4.01 crores, up by 87.4%, signalling strong bottom-line expansion.
Financial Trend Reversal and Its Implications
The company’s financial trend score has improved dramatically from -8 in the previous three months to a positive 6 in the latest quarter. This shift from negative to positive territory underscores a fundamental change in the company’s earnings trajectory and operational health. Investors and analysts alike have taken note of this improvement, which has been a catalyst for the recent upgrade in the Mojo Grade to Buy on 3 February 2026.
Despite these gains, certain areas remain a concern. The return on capital employed (ROCE) for the half-year period remains relatively low at 11.01%, indicating that while profitability has improved, capital utilisation efficiency still has room for enhancement. This metric will be closely watched in upcoming quarters to assess whether the company can sustain its margin expansion while improving asset productivity.
Stock Price and Market Performance
Sheetal Cool’s stock price closed at ₹323.65 on 13 February 2026, down 2.73% from the previous close of ₹332.75. The stock has traded within a 52-week range of ₹190.40 to ₹372.30, reflecting considerable volatility over the past year. Intraday trading on the news day saw a high of ₹342.75 and a low of ₹323.65, indicating active investor interest amid the earnings announcement.
When compared to the broader market, Sheetal Cool’s returns have been mixed. Over the past week, the stock declined by 3.27%, underperforming the Sensex which fell 0.80%. However, over the one-month horizon, the stock outperformed with an 8.53% gain against the Sensex’s 0.85% decline. Year-to-date, the stock is marginally positive at 0.11%, while the Sensex is down 2.71%. Over the last year, Sheetal Cool has delivered a 9.34% return, slightly ahead of the Sensex’s 8.90% gain. Longer-term returns over three years have been disappointing at -39.51%, contrasting with the Sensex’s 37.20% growth, but the five-year return of 81.83% comfortably outpaces the Sensex’s 60.86%.
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Industry Context and Sectoral Comparison
Operating within the FMCG sector, Sheetal Cool Products Ltd faces intense competition and margin pressures due to fluctuating raw material costs and changing consumer preferences. The company’s recent financial turnaround is notable given the sector’s overall moderate growth environment. While many FMCG companies have struggled with margin contraction, Sheetal Cool’s ability to expand profit margins and deliver double-digit revenue growth sets it apart.
Its Mojo Score of 74.0 and upgraded Mojo Grade of Buy reflect a strong fundamental position relative to peers. The company’s market capitalisation grade of 4 indicates a mid-sized presence in the FMCG space, with potential for further scaling. Investors looking for exposure to resilient consumer staples with improving financial health may find Sheetal Cool an attractive proposition.
Outlook and Investor Considerations
Looking ahead, sustaining the current momentum will be critical for Sheetal Cool Products Ltd. The company must focus on improving capital efficiency to lift ROCE beyond the current 11.01% level. Continued revenue growth, coupled with disciplined cost control, will be essential to maintain margin expansion and support earnings growth.
Investors should also monitor the stock’s price volatility and broader market conditions, as short-term fluctuations may present buying opportunities given the company’s improving fundamentals. The recent downgrade in the stock price on the day of the report may reflect profit booking or market-wide sentiment rather than a fundamental weakness.
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Summary
Sheetal Cool Products Ltd’s latest quarterly results mark a decisive shift from prior negative trends to a positive financial trajectory. With net sales growing 25.23%, PBT surging 142.01%, and PAT rising 87.4%, the company has demonstrated strong operational execution and market resilience. While ROCE remains an area for improvement, the overall financial health and upgraded Mojo Grade to Buy signal a compelling investment case within the FMCG sector.
Investors should weigh the company’s recent performance against its historical volatility and sector dynamics, but the current outlook suggests that Sheetal Cool is well-positioned to capitalise on growth opportunities and enhance shareholder value in the coming quarters.
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