Sarup Industries Ltd (514412)

Consumer Durables · Leather · NSE · Updated 30 September 2026

By StockFin Research TeamAI-Assisted AnalysisSource: BSE/NSE Filings

₹107.9↑ 20.26% (1Y)

🎯 Key Takeaways

Sarup Industries Ltd appears to be in a distressed or turnaround phase, marked by negative ROE and volatile operational performance, despite a rising share price over the past year. The company operates in the leather sector within consumer durables, a space facing margin pressures and commodity volatility.
Revenue declined 28.6% QoQ to ₹3 in Q1FY27.
⚠️ Persistent negative ROE and zero net profit despite stable revenue suggest structural un profitability.

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%

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📖 The Story

Sarup Industries Ltd appears to be in a distressed or turnaround phase, marked by negative ROE and volatile operational performance, despite a rising share price over the past year. The company operates in the leather sector within consumer durables, a space facing margin pressures and commodity volatility. Financial metrics suggest capital inefficiency, with a high P/E ratio of 75.2 contrasting sharply with negative ROE of -16.6%. Management commentary and filing activity indicate limited operational momentum, though balance sheet leverage is elevated in an unusual structure.

📰 What's Happening

The most recent quarterly filing (Jun 2026) shows revenue of ₹3 crore with flat operating profit and zero net profit, reflecting persistent margin compression. Sequential performance reveals instability, with Mar 2026 reporting negative OPM (-3.5%) and NP of ₹0, despite EPS of ₹0.84, suggesting possible accounting anomalies or share issuance. Earlier quarters (Dec 2025–Jun 2025) displayed modest but declining operational efficiency, with OPM peaking at 9.4% in Jun 2025 before eroding. No new orders, expansions, or strategic initiatives were disclosed in the latest filings. Management has not announced any restructuring, cost-cutting, or recovery plans in the available commentary.

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

Revenue has remained flat around ₹3–4 crore over the past six quarters, with no meaningful growth, while operating profitability has deteriorated, turning negative in the latest quarter. Despite EPS fluctuations, net profit remains zero, indicating either non-recognition of earnings or dilution effects. The company has consistently reported minimal operating cash flow, with OCF of ₹-2 crore in Mar 2025, suggesting working capital strain. The lack of profit recovery despite stable revenue points to either pricing pressure or high fixed costs, neither of which has been addressed in disclosed initiatives.

🔮 Management Outlook & What's Next

There is no forward guidance or explicit outlook provided in the latest management commentary or filing transcripts. The company has not issued any earnings projections, capital allocation plans, or recovery timelines in the available disclosures. Management’s tone in the filings remains neutral and devoid of strategic narrative, with no mention of product innovation, market expansion, or margin improvement measures. This absence of guidance suggests either operational uncertainty or a lack of confidence in near-term performance visibility.

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 reveals a highly leveraged and capital-intensive structure, with total borrowings of ₹37–39 crore against severely negative equity of ₹3 crore and reserves of ₹-6 crore. This implies the company is financing operations through debt while equity has been eroded, likely due to accumulated losses. Total assets have plateaued around ₹63–67 crore, indicating limited reinvestment or growth in asset base. The negative reserves signal that cumulative losses have exceeded capital contributions, raising solvency concerns if profitability does not resume.

💰 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 last five quarters, with no signs of dilution or stake sale. FII and DII holdings are consistently zero, suggesting no institutional interest or confidence. The shareholder base is narrow, with only 1,529–1,549 public shareholders, indicating low liquidity and limited market participation. There are no signals of activist activity or new investor inflows, and the stock’s 36.55% one-year return appears disconnected from fundamentals, possibly driven by speculative or technical factors.

⚖️ Peer Comparison — Leather

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
METROBRAND	23,762	58.4	38.9%	—	0.00
BATAINDIA	7,953	54.4	20.7%	—	0.00
RELAXO	7,259	39.1	12.4%	—	0.00
CAMPUS	6,405	50.7	32.5%	—	0.41
MAYURUNIQ	3,167	15.3	29.0%	—	0.01
BIL	1,336	51.7	10.2%	—	1.07
SREEL	655	20.0	9.5%	—	0.00
MIRZAINT	389	—	-3.4%	—	0.03
LIBERTSHOE	383	47.0	8.9%	—	0.84
KHADIM	213	76.7	10.5%	—	0.73

🔗 Peer Stock Analyses

METROBRAND BATAINDIA RELAXO CAMPUS MAYURUNIQ

⚠️ Risk Factors

1. Persistent negative ROE and zero net profit despite stable revenue suggest structural un profitability. 2. Extremely high leverage with negative equity raises solvency risks if operations do not improve. 3. Absence of institutional or DII interest combined with flat promoter holding may limit upside and increase volatility. 4. Management has not disclosed any corrective actions or recovery strategy, leaving the turnaround narrative unconvincing.

📋 Recent Filings

🧠 Analyst's Read

Sarup Industries Ltd remains a high-risk entity with no visible path to profitability or operational improvement. Investors should monitor for any disclosure of strategic changes, cost restructuring, or new business initiatives that could justify the recent price movement. Until then, the company appears to be trading on sentiment rather than fundamentals, with limited transparency on a path forward.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-30.

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.

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