Sarup Industries Ltd (514412)
🎯 Key Takeaways
- Sarup Industries Ltd is in a financial and operational turnaround phase, marked by declining profitability and strategic governance updates. The company reported a sharp drop in net profit to ₹56.
- Revenue declined 28.6% QoQ to ₹3 in Q1FY27.
- ⚠️ 1) Persistent financial weakness with declining revenue and profitability, coupled with negative ROE and low margins. 2) Heavy reliance on imports and
- Market Cap
- ₹35
- P/E Ratio
- 68.7
- P/B Ratio
- -14.59
- ROE
- -20.8%
- ROCE
- 3.9%
- Debt/Equity
- -15.48
- Promoter
- 74.4%
📖 The Story
Sarup Industries Ltd is in a financial and operational turnaround phase, marked by declining profitability and strategic governance updates. The company reported a sharp drop in net profit to ₹56.83 lakhs from ₹478.88 lakhs in FY2025-26, with total income also down to ₹1,656.62 lakhs, reflecting ongoing margin pressures and revenue contraction. Despite this, it has maintained a conservative capital structure and appointed two new independent directors to strengthen oversight and support future growth initiatives. Management has not provided explicit forward guidance, but the focus appears to be on stabilizing operations and improving governance ahead of potential recovery.
📰 What's Happening
The company held its 47th AGM on 30 September 2026 via video conference, where it adopted the audited financials and appointed two new independent directors, Harnarinder Deep Kaur and Balwinder Khurana, effective 6 September 2026, pending shareholder approval. The board also finalized the AGM date and record closure from 23 to 30 September 2026, with shareholders urged to register their email addresses for e-communications and e-voting via NSDL. These moves are part of a broader governance refresh, though no operational or expansionary initiatives were detailed in the filings.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 4 | 4 | 4 | 4 | 3 |
| Operating Profit | 0 | 0 | 0 | -0 | 0 |
| OPM % | 9.4% | 9.1% | 9.0% | -3.5% | 5.2% |
| Net Profit | 0 | 0 | 0 | 0 | 0 |
| EPS | ₹0.35 | ₹0.39 | ₹0.17 | ₹0.84 | ₹0.17 |
Financial performance has deteriorated significantly, with revenue declining from ₹2,016.51 lakhs to ₹1,656.62 lakhs and net profit plummeting to ₹56.83 lakhs in FY2025-26 from ₹478.88 lakhs the prior year. Quarterly trends show persistent revenue stagnation and volatile operating margins, with the latest quarter (Jun 2026) reporting zero revenue and operating profit. The company has not declared dividends, signaling a shift in capital allocation priorities toward financial prudence rather than shareholder returns.
🔮 Management Outlook & What's Next
Management has not provided explicit forward-looking guidance on revenue, margins, or growth targets in the latest filings. The tone has been cautious, emphasizing compliance, digital shareholder engagement, and governance improvements. The appointment of new independent directors and focus on e-communications suggest an intent to modernize investor relations, but there is no stated roadmap for operational revival or market expansion.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 3 | 3 | 3 | 3 |
| Reserves | -6 | -6 | -6 | -6 |
| Borrowings | 37 | 38 | 37 | 39 |
| Total Liabilities | 66 | 64 | 63 | 67 |
| Fixed Assets | 5 | 5 | 5 | 5 |
| Investments | 0 | 0 | 0 | 0 |
| Total Assets | 66 | 64 | 63 | 67 |
The balance sheet shows a stable but highly leveraged structure, with borrowings remaining steady at ₹37-39 lakhs and total assets at ₹63-67 lakhs. Equity and reserves remain minimal, with negative reserves indicating cumulative losses. The company is not investing aggressively, and the capital structure suggests limited capacity for expansion or debt reduction without external funding.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 | Mar 2026 |
|---|---|---|
| Operating | -2 | +1 |
| Investing | +4 | -1 |
| Financing | -1 | -1 |
| Net Cash Flow | +0 | -0 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 74.4% | 74.4% | 74.4% | 74.4% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 19.6% | 19.7% | 19.7% | 19.7% |
| # Shareholders | 1,549 | 1,547 | 1,529 | 1,532 |
Promoter holding remains stable at 74.36% over the past year, indicating no dilution or stake sale. Institutional ownership (FII/DII) is currently zero, with public shareholders holding 19.62-19.68% of the equity. The shareholder base is fragmented, with over 1,500 individual shareholders, suggesting retail dominance and limited institutional interest.
⚖️ Peer Comparison — Leather
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| METROBRAND | 22,734 | 55.9 | 38.9% | — | 0.00 |
| BATAINDIA | 7,876 | 53.9 | 20.7% | — | 0.00 |
| RELAXO | 7,113 | 38.4 | 12.4% | — | 0.00 |
| CAMPUS | 6,286 | 49.8 | 32.5% | — | 0.41 |
| MAYURUNIQ | 3,099 | 15.0 | 29.0% | — | 0.01 |
| BIL | 1,323 | 51.2 | 10.2% | — | 1.07 |
| SREEL | 679 | 20.7 | 9.5% | — | 0.00 |
| MIRZAINT | 381 | — | -3.4% | — | 0.03 |
| LIBERTSHOE | 370 | 45.4 | 8.9% | — | 0.84 |
| KHADIM | 208 | 75.0 | 10.5% | — | 0.73 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Persistent financial weakness with declining revenue and profitability, coupled with negative ROE and low margins. 2) Heavy reliance on imports and exposure to competitive pressures in the leather industry, which could further erode margins. 3) Governance changes are underway, but the lack of operational strategy or growth visibility raises concerns about execution capability. 4) No dividend policy or capital return mechanism, which may deter investor confidence.
📋 Recent Filings
- 🟡 voting results2026-10-02Sarup Industries Ltd announced voting results for its 47th Annual General Meeting held on 30 September 2026 via video conferencing. All four resolutio…
- 🟡 Board Meeting2026-10-01Sarup Industries Ltd held its 47th AGM on 30 September 2026 via video conference, with Chairman Atamjit Singh Bawa and Managing Director Simerjit Sing…
- Board Meeting2026-09-30Sarup Industries Ltd announced the closure of its trading window effective October 1, 2026, until 48 hours after un-audited financial statements for t…
- 🔴 annual report2026-09-08Sarup Industries Limited reported a net profit of **₹56.83 lakhs** for FY 2025-26, down from **₹478.88 lakhs** in the prior year, with total income de…
- 🟡 Board Meeting2026-09-08Sarup Industries Ltd announced the approved dates for its 47th Annual General Meeting and record date for shareholder registration on September 8, 202…
- 🟡 Board Meeting2026-09-08Sarup Industries Ltd announced the outcome of its board meeting on 08.09.2026, approving the 47th Annual General Meeting scheduled for 30.09.2026 via …
- 🟡 Board Meeting2026-09-05Sarup Industries announced board outcomes from a 05.09.2026 meeting where Mr. Rajinder Kumar Bhatia completed his 5-year term as Independent Director,…
- 🟡 Board Meeting2026-09-05Sarup Industries announced board changes effective 05.09.2026, appointing Mrs Harnarinder Deep Kaur and Mr Balwinder Khurana as additional independent…
🧠 Analyst's Read
Sarup Industries is navigating a fragile financial position with limited visibility into a recovery path. Investors should monitor upcoming quarterly performance for signs of stabilization and assess whether the new board members drive meaningful strategic change. The absence of guidance and declining profitability warrant caution, though governance improvements may support long-term credibility.
Based on filing content and financial data. Not a recommendation.
Read the full analysis
Quarterly trends, balance sheet, cash flow, peer comparison, and AI insights — sign up free to unlock.
Sign Up Free — Unlock Full Analysis2 free AI queries per day.
Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-10-02.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
📡 Get AI alerts for your stocks — summarized by AI daily
Set up your AI Radar — pick stocks, get daily email summaries of new filings.
Set up AI Radar — FreeFree account · 2 AI queries/day