Tulsyan NEC Faces Financial Stability Challenges Amid Rising Debt and Interest Expenses

Tulsyan NEC, a microcap player in the iron and steel products industry, has recently undergone a financial trend adjustment, reflecting a flat performance for the quarter ending September 2025. The company's score has shifted positively over the last three months, indicating a stabilization in its financial metrics.
Despite this adjustment, the company faces significant challenges. Notably, its interest expenses for the past nine months have surged to Rs 74.23 crore, marking a substantial growth of 166.06%. This increase in interest burden could impact profitability and cash flow management. Additionally, Tulsyan NEC's debt-equity ratio stands at a concerning 1.66 times, the highest in its history, suggesting a reliance on debt financing that may pose risks in a fluctuating market environment.

In terms of market performance, Tulsyan NEC has struggled compared to the Sensex. Over the past year, the stock has declined by 48.72%, while the Sensex has gained 9.03%. This stark contrast highlights the challenges Tulsyan NEC faces in maintaining investor confidence and market competitiveness. The company's current price is Rs 38.40, down from a previous close of Rs 40.40, reflecting ongoing volatility in its stock performance.