Shares of HLE Glascoat Ltd plunged nearly 18% on Tuesday, November 11, after the company reported a decline in profit margins despite strong top-line growth in the September quarter (Q2 FY26). The stock fell to Rs 487.95, down 16.7%, from the previous close of Rs 585.75, with heavy trading volumes on the NSE.
For the quarter ended September 2025, the company’s sales rose 48.77% year-on-year to Rs 350.78 crore, compared to Rs 235.78 crore in the same period last year. However, net profit fell 5.52% to Rs 11.99 crore against Rs 12.69 crore in Q2 FY25.
The key reason for the sharp fall in stock price is the contraction in operating margins, which slipped to 10.9% in Q2 FY26 from 14.46% a year earlier, even as EBITDA rose 12% year-on-year. Rising input costs and lower realizations in certain process equipment categories are believed to have pressured profitability.
The company’s profit before depreciation and tax (PBDT) stood at Rs 30.84 crore, up from Rs 26.84 crore, while profit before tax (PBT) increased 14% to Rs 22.24 crore from Rs 19.53 crore.
Despite strong sales growth, the market reacted negatively to the weaker margin performance, indicating investor concerns about cost escalation and pricing pressure.
At current levels, HLE Glascoat’s market capitalization stands at Rs 3,411 crore, with a P/E ratio of 51.8 and dividend yield of 0.22%.
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