Sugal & Damani Share Brokers Ltd Reports Sharp Decline in Quarterly Financial Performance

Quarterly Financial Performance Deteriorates

The December 2025 quarter has been particularly challenging for Sugal & Damani. The company’s profit after tax (PAT) plummeted to a mere ₹0.16 crore, representing a staggering decline of 88.6% relative to the average of the preceding four quarters. This sharp contraction in profitability is a clear signal of operational stress and reduced earnings power.

Net sales over the latest six-month period also contracted by 30.48%, falling to ₹8.03 crore. This negative growth in top-line revenue contrasts sharply with the company’s historical performance, where it had previously demonstrated more stable or positive sales trends. The decline in sales volume or pricing power is a critical concern for investors, as it directly impacts the company’s ability to generate sustainable profits.

Operating profitability has also taken a hit, with the Profit Before Depreciation, Interest and Tax (PBDIT) registering a loss of ₹0.04 crore in the quarter. This is the lowest level recorded in recent periods, signalling that core business operations are under strain. Correspondingly, the operating profit to net sales ratio has dropped to 0.00%, underscoring the absence of meaningful margin expansion or cost control benefits during the quarter.

Decline in Earnings Per Share and Pre-Tax Profit

The earnings per share (EPS) for the quarter fell to ₹0.26, the lowest in recent history, reflecting the diminished profitability and its impact on shareholder returns. Pre-tax profit excluding other income (PBT less OI) also declined to a loss of ₹0.08 crore, further highlighting the company’s inability to generate positive earnings from its core activities.

These financial setbacks have contributed to a downgrade in the company’s Mojo Grade from Sell to Strong Sell as of 1 February 2026, signalling a more cautious stance from market analysts and rating agencies. The Mojo Score currently stands at 20.0, indicating weak financial health and limited near-term upside potential.

Stock Price and Market Performance

Despite the disappointing financial results, Sugal & Damani’s stock price has shown some resilience in the short term. The share closed at ₹73.85 on 11 February 2026, up 7.03% from the previous close of ₹69.00. The intraday trading range was between ₹69.00 and ₹74.00, reflecting some volatility but also investor interest possibly driven by speculative activity or short-term technical factors.

However, the stock remains well below its 52-week high of ₹139.00 and above its 52-week low of ₹44.60, indicating a wide trading range over the past year. This volatility may be attributed to the company’s inconsistent financial performance and broader sectoral pressures within the NBFC space.

Long-Term Returns Outperform Sensex Despite Recent Weakness

Looking at the longer-term performance, Sugal & Damani has delivered impressive returns relative to the benchmark Sensex. Over the past three years, the stock has surged by 390.70%, vastly outperforming the Sensex’s 38.88% gain. Over five and ten years, the stock’s returns stand at 681.48% and 629.02% respectively, compared to the Sensex’s 64.25% and 254.70%.

Nonetheless, the recent one-year return of -1.53% lags behind the Sensex’s 9.01% gain, signalling a recent loss of momentum. Year-to-date, the stock has managed a modest 2.86% gain, outperforming the Sensex’s negative 1.11% return. Shorter-term returns over one week and one month have been robust at 8.60% and 10.50% respectively, compared to the Sensex’s 0.64% and 0.83%, suggesting some renewed investor interest despite fundamental challenges.

Sectoral and Industry Context

Sugal & Damani operates within the NBFC sector, which has faced heightened regulatory scrutiny and credit challenges in recent years. The sector’s performance is often sensitive to macroeconomic conditions, interest rate fluctuations, and liquidity availability. Against this backdrop, the company’s deteriorating financial trend is a cause for concern, as it may reflect broader sectoral headwinds as well as company-specific operational issues.

Investors should note that the company’s market capitalisation grade is rated 4, indicating a mid-sized market cap with moderate liquidity and investor interest. This positioning may limit the stock’s ability to attract large institutional investments, especially amid negative financial trends.

Outlook and Investor Considerations

Given the sharp decline in profitability, contracting sales, and margin compression, Sugal & Damani faces significant challenges in reversing its negative financial trajectory. The downgrade to a Strong Sell rating reflects a cautious outlook from analysts, who highlight the need for operational improvements and revenue stabilisation before considering the stock a viable investment opportunity.

Investors should weigh the company’s recent financial setbacks against its long-term historical outperformance and current valuation levels. While short-term price gains have been observed, these may be driven more by market sentiment than fundamental strength.

Conclusion

Sugal & Damani Share Brokers Ltd’s recent quarterly results mark a clear inflection point, with financial trends turning negative after a period of relative stability. The steep declines in PAT, net sales, and operating margins underscore the operational challenges the company currently faces. While the stock has shown some short-term price resilience, the downgrade to a Strong Sell rating and a low Mojo Score reflect heightened risks for investors.

Long-term investors should monitor the company’s ability to stabilise revenues and restore profitability before considering new positions. Meanwhile, those seeking exposure to the NBFC sector may wish to explore alternative stocks with stronger fundamentals and more favourable outlooks.

Unlock special upgrade rates for a limited period. Start Saving Now →