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Nifty 500's Troubled Year: Top 5 Losers Emerge
The financial year 2025 has presented a complex narrative for Indian equity markets. Despite the benchmark indices reaching unprecedented highs, indicating a robust overall economic sentiment, the broader market landscape painted a different picture. Many stocks, particularly within the Nifty 500 index, faced significant downturns, leading to substantial wealth destruction for investors. This report identifies the five biggest losers on the Nifty 500 index for the year, exploring the specific reasons behind their steep declines.
Aditya Birla Fashion and Retail Leads the Decline
Aditya Birla Fashion and Retail Limited (ABFRL) stands out as the most significant loser on the Nifty 500 in 2025. The company's stock has seen investors' wealth diminish by over 72% in the past year. This sharp fall followed a major corporate restructuring where ABFRL was demerged into two separate listed entities: the new ABFRL and Aditya Birla Lifestyle Brands Limited (ABLBL). This demerger became effective in May 2025, with shareholders receiving one ABLBL share for every ABFRL share held.
Tejas Networks Faces Network Woes and Losses
Tejas Networks Limited secured the second spot among the top losers, experiencing a 63% drop in its stock value over the last twelve months. The decline has been consistent, with a 35% dip in the last six months and a 6.6% fall in the past month. A significant factor contributing to its struggles was a complaint filed by Bharti Airtel in the preceding month. The telecom giant alleged that Tejas Networks' 'sub-standard equipment' was causing interference with its network operations in the Rajasthan circle. Adding to its woes, the company reported a consolidated net loss of ₹193.9 crore in the first quarter of fiscal year 2025, a stark contrast to the net profit of ₹77.5 crore reported in the same quarter of the previous year.
Ola Electric Mobility Navigates Controversies
Founded by Bhavish Aggarwal, Ola Electric Mobility has been embroiled in controversy throughout 2025. Beyond public disputes on social media platforms, the company has also witnessed promoters selling off shares. Its stock value has plummeted by 62.4% over the past year. Ola Electric's shares debuted on August 9 at ₹76, closely mirroring its issue price of ₹75. The Initial Public Offering (IPO) ran from August 2 to August 6, successfully raising over ₹6,000 crores.
SKF India's Financial Setback
SKF India, the Indian arm of the Swedish multinational SKF Group, saw its stock erode approximately 60% of investor capital over the previous year. The company, a global leader in bearings, seals, and lubrication systems operating in India since 1923, has experienced a decline of over 20% in the past six months. SKF India provides solutions for automotive, industrial, and agricultural sectors.
Praj Industries Completes the Top Five
Praj Industries Limited rounds out the list of the five biggest Nifty 500 losers, with its stock falling by 59% over the past year. The stock has seen a substantial drop of 33% in the last six months. In the second quarter of fiscal year 2026, the company reported a 65% year-on-year decrease in its consolidated net profit, posting ₹19.2 crore compared to ₹53 crore in the corresponding period last year.
Impact
These significant stock price corrections among prominent companies listed on the Nifty 500 index underscore the inherent risks and volatility within the broader Indian equity market. For investors, this highlights the importance of thorough due diligence and risk management, as even seemingly strong companies can experience sharp downturns. The performance of these top losers may also signal underlying sector-specific challenges or broader economic headwinds that could impact market sentiment and investment strategies going forward.
Impact Rating: 8/10
Difficult Terms Explained
- Nifty 500 Index: A stock market index that represents the top 500 companies listed on the National Stock Exchange of India, reflecting the performance of the broader Indian equity market.
- Demerged: The process where a company splits into two or more separate entities, each with its own management and stock listing.
- IPO (Initial Public Offering): The first time a private company offers its shares to the public, allowing investors to buy ownership in the company.
- YoY (Year-on-Year): A comparison of a period's performance against the same period in the previous year.
- Consolidated Net Profit: The total profit of a company after deducting all expenses, taxes, and interests, including the profits and losses of its subsidiaries.
- Sub-standard equipment: Equipment that does not meet the required quality or performance standards, potentially causing operational issues.
- Promoter: The individual or group who founded or controls a company, often holding a significant stake.