Shanthi Gears' Q2 net profit drops 16 pc, revenue down 15 pc

Mumbai, Oct 24 (IANS) Gear manufacturing company Shanthi Gears, part of the BSE Smallcap index, on Friday reported a sharp decline of 16 per cent year-on-year (YoY) in its net profit for the September 2025 quarter (Q2 FY26).

The Tamil Nadu-based company’s profit fell to Rs 22 crore compared to Rs 26 crore in the same quarter last financial year (Q2 FY25), according to its stock exchange filing.

Revenue also dropped more than 15 per cent year-on-year, falling to Rs 132 crore from Rs 155 crore in the corresponding period of the previous fiscal.

The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) came in at Rs 26.6 crore, down 22 per cent from Rs 34 crore a year ago.

Profit margins also weakened, declining to 20.2 per cent in the September quarter from 22 per cent in the same period previous fiscal.

Following the weak results, Shanthi Gears’ stock witnessed sharp volatility in Friday’s session.

Within half an hour of the results announcement, the stock touched both its intra-day high and low levels. It climbed to a day’s high of Rs 539 before slipping sharply to Rs 494.9.

The previous closing price was Rs 526.5, meaning the stock fell nearly 6 per cent after the results were announced. From the day’s high, the stock dropped over 8 per cent.

At the closing bell, the stock was at Rs 520, down by Rs 6.85 or 1.30 per cent on the National Stock Exchange (NSE) on Friday.

According to information available on its website, Shanthi Gears Limited is a manufacturer of industrial gears, gearboxes, and other power transmission products.

The company is founded over 50 years ago, and known for its customised solutions and supplies to core sectors like steel, cement, and power.

--IANS

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