Mumbai, October 27 (Monday): Shares of Garuda Construction & Engineering Limited (GCEL) fell sharply by 4.37% to ₹208.40 in Monday’s early trade on the NSE, following the company’s announcement of its Q2 FY26 results. The stock declined from its previous close of ₹217.92 as investors reacted to a quarter-on-quarter (QoQ) decline in profitability, despite strong year-on-year growth figures.
Q2 Performance — Strong YoY, Weak QoQ
According to the company’s financial statement, total income for the quarter ended September 30, 2025, stood at ₹11,843.55 crore, compared to ₹12,668.00 crore in Q1 FY26, marking a 6.5% sequential decline.
Similarly, profit before tax dropped to ₹362.76 crore from ₹374.06 crore in the previous quarter, while net profit fell to ₹271.12 crore from ₹279.93 crore in Q1 FY26 — a 3.15% QoQ decline.
Key Financial Snapshot
| Metric | Q2 FY26 (₹ crore) | Q1 FY26 (₹ crore) | QoQ Change | Q2 FY25 (₹ crore) | YoY Change |
|---|---|---|---|---|---|
| Total Income | 11,843.55 | 12,668.00 | -6.5% | 4,731.37 | +150% |
| Profit Before Tax | 362.76 | 374.06 | -3.0% | 136.97 | +165% |
| Net Profit | 271.12 | 279.93 | -3.15% | 102.40 | +165% |
| EBITDA | 344.00 | 354.00 | -2.8% | 134.00 | +157% |
Market Reaction
The sequential decline in both revenue and profitability appears to have triggered investor concerns, leading to profit-booking after the stock’s recent rally. Despite robust year-on-year growth of over 150% in revenue and 165% in net profit, the quarter-on-quarter dip highlighted moderation in order execution pace and cost pressures.
The stock has also been among the most active counters on the NSE today, with a market capitalization of ₹19.46 billion and a day’s trading range between ₹205.21 and ₹230.70.
Outlook
While GCEL’s fundamentals remain strong, with healthy margins and consistent project inflows, analysts suggest that the short-term pressure could persist until the company demonstrates sequential growth recovery in upcoming quarters.
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