Chandni Machines Reports Significant Revenue Contraction and Proposed Stock Split

Revenue for FY 2025-26 dropped to Rs 25.97 crore from Rs 200.98 crore in the previous year. Profit After Tax similarly declined to Rs 73.12 lakh from Rs 1.42 crore.

Reader Takeaway: A 10:1 stock split aims to improve retail liquidity, but the massive revenue decline remains a primary concern.

What just happened

Chandni Machines has released its Annual Report for FY 2025-26, highlighting a major contraction in business operations. Alongside these financial results, the Board has proposed a 10:1 stock split, subdividing shares from a face value of Rs 10 to Rs 1 each to enhance affordability for retail investors.

Why this matters

The significant year-on-year drop in revenue and profit indicates operational headwinds. Investors must weigh the stock split's potential liquidity benefits against the company's struggle to maintain its previous scale of operations amid geopolitical and macroeconomic challenges.

The backstory

The company management attributed the sharp decline in trading activity to Middle East geopolitical uncertainties and currency depreciation, which disrupted supply chains throughout the fiscal year.

Risks to watch

Significant capital remains unutilized from the January 2026 preferential issue, with Rs 13.84 crore yet to be deployed. Additionally, the company recently paid a fine of Rs 1.20 lakh for a delay in listing compliance, and investors should monitor the evolving composition of the Board following the recent resignation and new appointment.

What to track next

Watch for the record date announcement for the stock split and further updates on how the remaining preferential issue proceeds are deployed to stabilize operations.