Whalesbook
Profit Tumbles Amid Revenue Weakness
Shanthi Gears, a subsidiary of Tube Investments of India Ltd (TII), reported a 37% drop in net profit for the fourth quarter ending March 31, 2026. Net profit was ₹16 crore, down from ₹22 crore in the prior year's quarter. Revenue also declined 13% to ₹135 crore from ₹153 crore.
Full-Year Financials Show Decline
The company's full-year FY26 performance was also challenging. Net profit fell 24% to ₹77 crore from ₹96 crore a year ago. Annual revenue decreased 14% to ₹519 crore from ₹605 crore. Shanthi Gears attributed this decline to lower order inflow early in the fiscal year and customers delaying projects.
Order Book Strength Amid Declines
Despite the financial downturn, Shanthi Gears reported its highest-ever quarterly order booking of ₹178 crore in Q4 FY26, an 89% increase compared to the same quarter last year. The company's unexecuted order book stood at ₹349 crore as of March 31, 2026, pointing to future revenue potential.
Dividend Payout and Leadership Change
The board recommended a final dividend of ₹2 per share for FY26, in addition to the ₹3 interim dividend paid earlier, making a total of ₹5 per share for the fiscal year. Separately, P.L. Suresh, Head of Technology, will step down on June 17, 2026, to pursue other career paths.
Market Reaction
Following the financial results, Shanthi Gears shares fell on the National Stock Exchange (NSE). The stock was trading down ₹31.10, or 6.42%, at ₹453 per share.