Synopsis: Small cap firm’s shares are within the highlight right now after the corporate has introduced Q2 outcomes.
A small-cap firm that’s within the enterprise of design, manufacture, provide and servicing of gears and kit containers is within the highlight right now after posting Q2FY26 outcomes. Learn the article beneath for detailed insights into its efficiency.
With a market capitalization of Rs. 3,989.22 crore, the shares of Shanthi Gears Restricted have been closed at Rs. 520, down by 1.3 p.c from its earlier day’s closing value of Rs. 526.85. The inventory has touched an intraday low of Rs. 493.65, implying a draw back of 6.3 p.c from its earlier day’s shut value.
Q2FY26 Outcomes
Shanthi Gears Restricted reported Rs. 131.91 crore in income for the second quarter of FY26, a 14.94 p.c lower over the Rs. 155.08 crore for a similar interval in FY25. It decreased by 2.21 p.c as in comparison with Rs. 134.89 crore in Q1 FY26.
The corporate’s EBITDA for Q2 FY26 stood at Rs. 26.52 crore, down by 13.08 p.c from Rs. 30.51 crore in Q1 FY26, and declined by 22.36 p.c from Rs. 34.16 crore in Q2 FY25.
The consolidated web revenue for the second quarter of FY26 was Rs. 21.51 crore, which was 5.2 p.c decrease than the Rs. 22.69 crore reported within the earlier quarter and decreased by 16.07 p.c from Rs. 25.63 crore in Q2 FY25. Revenue decline was additionally mirrored in earnings per share (EPS), which decreased to roughly Rs. 2.80 in Q2 FY26 from Rs. 3.34 in Q2 FY25.
In Q2 FY26, the corporate achieved a Return on Common Invested Capital (ROIC) of 46 p.c and generated a free money circulation of Rs. 12.68 crore. Through the quarter, it booked new orders value Rs. 138 crore, up 7 p.c QoQ, whereas the unexecuted order e book as of thirtieth September 2025 stood at Rs. 254 crore.
In regards to the firm
Shanthi Gears Restricted, based in 1960 and based mostly in Coimbatore, India, designs, manufactures, and providers gears and gearboxes for home and worldwide markets. Its choices embrace helical, bevel helical, worm, extruder, and cooling tower gearboxes, geared motors, and numerous metallic castings. The corporate additionally gives set up, refurbishment, and on-site help, serving industries reminiscent of metal, cement, sugar, energy, mining, paper, rubber, textiles, and aerospace. It operates as a subsidiary of Tube Investments of India Restricted.
A return on fairness (ROE) of about 25.6 p.c and a return on capital employed (ROCE) of about 34.9 p.c exhibit the corporate’s monetary place. In the meanwhile, the corporate’s P/E ratio is 40x which is larger as in comparison with its trade P/E 36.2x.
Conclusion
Shanthi Gears Restricted fell about 6 p.c after its Q2 FY26 outcomes as income and income declined in comparison with final 12 months and the earlier quarter. Income stood at Rs. 131.91 crore and web revenue at Rs. 21.51 crore, whereas earnings per share fell to Rs. 2.80. Regardless of this, the corporate confirmed robust money circulation, wholesome returns, and regular new orders, reflecting a strong long-term enterprise outlook.
Written By Akshay Sanghavi
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