Key Events This Week
16 Feb: Reports continued financial struggles amid margin pressures
16 Feb: Sharp gap down opening at 5.2% decline
16 Feb: Q3 FY26 losses deepen as operational challenges mount
20 Feb: Week closes at Rs.203.85 (-1.92%)
16 February: Financial Struggles and Gap Down Set the Tone
Thirumalai Chemicals Ltd opened the week with a significant gap down of 5.2%, closing at Rs.198.80, a decline of 4.35% on the day. This sharp drop reflected heightened market concerns following the release of the company’s quarterly results for the period ended December 2025, which revealed continued financial deterioration amid margin pressures. The stock’s intraday low touched Rs.193.45, marking a 6.93% drop from the previous close of Rs.207.85.
The quarterly report highlighted net sales of ₹415.85 crores, the lowest in recent years, and a loss before tax of ₹59.23 crores, down 26.3% from the recent quarterly average. Net profit after tax also deteriorated to a loss of ₹46.57 crores, down 24.7%. These figures underscored the ongoing challenges in the commodity chemicals sector, including demand headwinds and pricing pressures.
Liquidity concerns were evident with cash reserves at ₹357.03 crores and rising interest expenses up 41.09% to ₹47.21 crores over six months. The company’s Mojo Score stood at 17.0 with a Strong Sell grade, reflecting deteriorated fundamentals and weak market sentiment. The stock’s underperformance was stark compared to the Sensex’s 0.70% gain on the same day.
17-18 February: Partial Recovery Amid Market Stability
Following the steep decline, Thirumalai Chemicals saw a modest recovery over the next two trading sessions. On 17 February, the stock rose 2.11% to close at Rs.203.00, supported by a Sensex gain of 0.32%. The upward momentum continued on 18 February with a 2.22% increase to Rs.207.50, just shy of the week’s high, while the Sensex advanced 0.43%.
This rebound suggested some short-term buying interest, possibly driven by technical support near the 20-day moving average. However, the stock remained below its 5-day, 50-day, 100-day, and 200-day moving averages, indicating that longer-term trends remained subdued. Technical indicators such as the MACD and KST oscillators maintained a bearish stance, signalling persistent downward momentum despite the brief rally.
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19-20 February: Renewed Weakness Amid Market Volatility
The stock reversed course on 19 February, declining 0.80% to Rs.205.85 as the Sensex fell sharply by 1.45%, reflecting broader market volatility. The following day, 20 February, Thirumalai Chemicals closed at Rs.203.85, down 0.97%, while the Sensex rebounded 0.41%. The stock’s weekly decline of 1.92% contrasted with the Sensex’s 0.39% gain, highlighting relative underperformance.
Volume patterns showed heightened activity on 19 February with 15,737 shares traded, the highest for the week, possibly indicating increased selling pressure. The stock’s beta of 1.19 suggests it is more volatile than the market, which was evident in the amplified price swings during the week.
Despite some short-term technical support, the company’s fundamental challenges remain unresolved. The persistent losses, margin pressures, and liquidity constraints continue to weigh on investor sentiment, limiting the stock’s ability to sustain gains.
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Daily Price Performance vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-16 | Rs.198.80 | -4.35% | 36,787.89 | +0.70% |
| 2026-02-17 | Rs.203.00 | +2.11% | 36,904.38 | +0.32% |
| 2026-02-18 | Rs.207.50 | +2.22% | 37,062.35 | +0.43% |
| 2026-02-19 | Rs.205.85 | -0.80% | 36,523.88 | -1.45% |
| 2026-02-20 | Rs.203.85 | -0.97% | 36,674.32 | +0.41% |
Key Takeaways
Persistent Financial Pressure: The company’s quarterly results revealed deepening losses with net sales at a multi-quarter low and significant margin compression. Rising interest expenses and declining liquidity exacerbate operational challenges.
Market Sentiment and Technicals: The sharp gap down on 16 February and subsequent price volatility reflect investor caution. Technical indicators remain predominantly bearish, with the stock trading below key moving averages except the 20-day, indicating limited short-term support.
Relative Underperformance: The stock’s 1.92% weekly decline contrasts with the Sensex’s 0.39% gain, highlighting its vulnerability amid sectoral headwinds and broader market resilience. The high beta of 1.19 amplifies price swings, increasing risk for investors.
Conclusion
Thirumalai Chemicals Ltd’s performance over the week ending 20 February 2026 was marked by continued financial strain and market scepticism. Despite brief intraday recoveries, the stock closed lower, weighed down by deteriorating profitability, liquidity concerns, and a downgraded fundamental outlook. The gap down opening and sustained volatility underscore the challenges facing the company in a difficult commodity chemicals environment. Investors should note the persistent operational headwinds and cautious market sentiment reflected in the stock’s relative underperformance against the Sensex.
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