Vraj Iron & Steel Declines 5.04% Amid Profit Squeeze Despite 34.7% Revenue Growth

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Vraj Iron & Steel Ltd experienced a challenging week on the bourses, with its stock price declining by 5.04% from Rs.134.85 to Rs.128.05, significantly underperforming the Sensex which fell by only 0.54% over the same period. Despite a strong 34.7% revenue growth reported in the December 2025 quarter, the company’s profitability sharply deteriorated, triggering negative market sentiment and a downgrade to a Mojo Grade of Sell.

Key Events This Week

Feb 9: Stock opens at Rs.134.10, down 0.56% amid Sensex gains

Feb 10: Price recovers to Rs.135.80 (+1.27%) on moderate volume

Feb 12: Sharp decline to Rs.133.95 (-1.00%) as Sensex dips

Feb 13: Quarterly results reveal profit plunge; stock closes at Rs.128.05 (-4.40%)

Week Open
Rs.134.85
Week Close
Rs.128.05
-5.04%
Week High
Rs.135.80
vs Sensex
-4.50%

Monday, 9 February 2026: Weak Start Despite Sensex Rally

Vraj Iron & Steel Ltd opened the week at Rs.134.10, down 0.56% from the previous Friday’s close of Rs.134.85. This decline came despite a strong Sensex gain of 1.04% to 37,113.23 points, indicating early investor caution towards the stock. Trading volume was modest at 235 shares, reflecting limited buying interest amid broader market optimism.

Tuesday, 10 February 2026: Price Rebounds on Moderate Volume

The stock rebounded to Rs.135.80, gaining 1.27% on increased volume of 370 shares. This recovery aligned with a continued Sensex advance of 0.25%, closing at 37,207.34. The modest price gain suggested some short-term buying interest, possibly driven by anticipation of upcoming quarterly results or sector developments.

Wednesday, 11 February 2026: Slight Pullback Amid Market Stability

On 11 February, Vraj Iron & Steel slipped marginally by 0.37% to Rs.135.30 on low volume of 61 shares. The Sensex continued its upward trend, rising 0.13% to 37,256.72. The stock’s minor retreat contrasted with the market’s steady gains, signalling early signs of investor hesitation ahead of earnings announcements.

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Thursday, 12 February 2026: Decline on Heavy Volume as Market Turns Negative

The stock price declined by 1.00% to Rs.133.95 on a sharp increase in volume to 2,146 shares. This drop coincided with a Sensex fall of 0.56% to 37,049.40, reflecting a broader market correction. The heavier trading volume suggested that investors were beginning to react to emerging concerns about the company’s operational performance ahead of the quarterly results.

Friday, 13 February 2026: Quarterly Results Trigger Sharp Sell-Off

Vraj Iron & Steel Ltd reported its December 2025 quarter results, revealing a complex financial picture. While net sales surged 34.7% to ₹279.41 crores compared to the previous six months, profit after tax plunged by 86.9% to just ₹1.10 crore. Operating profit before depreciation, interest, and tax (PBDIT) fell to ₹5.18 crores, the lowest in recent periods, with operating margins compressing to 3.54% of net sales.

The company’s profit before tax excluding other income turned negative at ₹-0.85 crore, indicating operational losses masked by unusually high non-operating income. Earnings per share dropped to ₹0.33, the lowest in recent history. This disappointing earnings performance led to a sharp 4.40% decline in the stock price to close at Rs.128.05 on heavy volume of 5,639 shares, significantly underperforming the Sensex’s 1.40% decline.

Following these results, Vraj Iron & Steel’s financial trend shifted negatively, with its Mojo Score falling to 34.0 and a downgrade to a Mojo Grade of Sell. The company’s market cap grade remains modest at 4, reflecting limited investor confidence amid margin pressures and operational challenges in the ferrous metals sector.

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Date Stock Price Day Change Sensex Day Change
2026-02-09 Rs.134.10 -0.56% 37,113.23 +1.04%
2026-02-10 Rs.135.80 +1.27% 37,207.34 +0.25%
2026-02-11 Rs.135.30 -0.37% 37,256.72 +0.13%
2026-02-12 Rs.133.95 -1.00% 37,049.40 -0.56%
2026-02-13 Rs.128.05 -4.40% 36,532.48 -1.40%

Key Takeaways from the Week

The week’s trading and financial disclosures highlight several critical points for Vraj Iron & Steel Ltd:

  • Revenue Growth vs Profitability: While the company achieved a robust 34.7% increase in net sales for the December quarter, this was overshadowed by an 86.9% plunge in profit after tax, signalling severe margin pressures.
  • Margin Compression: Operating profit margins contracted to 3.54%, the lowest in recent quarters, reflecting rising input costs or operational inefficiencies.
  • Market Reaction: The stock’s 5.04% weekly decline, significantly worse than the Sensex’s 0.54% fall, underscores investor concerns about the sustainability of earnings and operational challenges.
  • Financial Trend and Ratings: The downgrade to a Mojo Grade of Sell and a low Mojo Score of 34.0 reflect deteriorating financial health and cautious market sentiment.
  • Volume and Volatility: The sharp increase in trading volume on the day of results release indicates heightened investor activity and volatility linked to the disappointing earnings.

Conclusion

Vraj Iron & Steel Ltd’s week was marked by a stark contrast between strong top-line growth and a sharp decline in profitability, which weighed heavily on its stock performance. The company’s December 2025 quarter results revealed significant margin pressures and operational challenges that have eroded investor confidence, as reflected in the stock’s underperformance relative to the Sensex and the downgrade to a Sell rating. Going forward, the company’s ability to stabilise margins and improve operational efficiency will be crucial to reversing the negative trend. Until then, the current financial and market indicators suggest a cautious outlook for Vraj Iron & Steel Ltd.

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