Simran Farms Ltd (519566)
🎯 Key Takeaways
- Simran Farms Ltd is a small-cap FMCG company operating in a niche segment with modest scale and limited market penetration. The business shows cyclical revenue patterns and thin operational margins, suggesting it is in a fragile or transitional phase rather than a mature growth or cash-generating business.
- Revenue declined 14% QoQ to ₹214 in Q1FY27.
- ⚠️ Persistent negative operating cash flow, with OCF of ₹-11 crore in Mar 2025, raises solvency concerns despite temporary financing inflows.
📖 The Story
Simran Farms Ltd is a small-cap FMCG company operating in a niche segment with modest scale and limited market penetration. The business shows cyclical revenue patterns and thin operational margins, suggesting it is in a fragile or transitional phase rather than a mature growth or cash-generating business. Recent financial trends indicate instability in top-line performance and profitability.
📰 What's Happening
Management has not announced any new capacity expansions, product launches, or strategic initiatives in the latest filings. There is no evidence of new orders or capacity additions in the management commentary. The company continues to operate with minimal capital expenditure, and no M&A or divestment activity was disclosed in the recent quarter. The focus appears to be on sustaining existing operations rather than scaling up.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 205 | 188 | 233 | 249 | 214 |
| Operating Profit | 1 | 1 | 2 | 5 | 1 |
| OPM % | 0.6% | 0.5% | 1.0% | 2.0% | 0.7% |
| Net Profit | 1 | 0 | 1 | 3 | 1 |
| EPS | ₹1.99 | ₹0.93 | ₹3.01 | ₹7.40 | ₹1.74 |
Revenue has shown volatility over the past year, peaking at ₹249 crore in Q3FY26 but declining to ₹188 crore in Q2FY26 before recovering slightly to ₹214 crore in Q1FY27. Profitability remains extremely thin, with operating margins consistently below 2% and net profit margins hovering near zero. The sharp drop in EPS from ₹7.4 in Mar 2026 to ₹1.74 in Jun 2026 reflects both revenue softness and potential earnings volatility, with no clear improvement trend despite seasonal fluctuations.
🔮 Management Outlook & What's Next
There is no forward guidance or explicit outlook provided in the latest filing. Management has not quantified future revenue targets, margin improvement plans, or investment horizons. The absence of strategic commentary suggests limited confidence or clarity in growth prospects, with no roadmap shared for improving operational efficiency 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 | 4 | 4 | 4 | 5 |
| Reserves | 36 | 33 | 38 | 53 |
| Borrowings | 12 | 41 | 61 | 33 |
| Total Liabilities | 150 | 189 | 214 | 177 |
| Fixed Assets | 23 | 24 | 23 | 24 |
| Investments | 0 | 0 | 0 | 0 |
| Total Assets | 150 | 189 | 214 | 177 |
The balance sheet shows a volatile capital structure, with total assets declining from ₹214 crore to ₹177 crore over the past two fiscal years, while borrowings remain elevated at ₹33 crore. Equity has remained flat at ₹4–5 crore, indicating minimal retained earnings or capital infusion. This suggests the company is not aggressively investing or deleveraging but is instead maintaining a static capital base amid weak cash generation.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | -11 |
| Investing | -2 |
| Financing | +3 |
| Net Cash Flow | -10 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 37.3% | 37.3% | 42.3% | 42.3% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 39.8% | 39.5% | 40.0% | 39.9% |
| # Shareholders | 4,488 | 4,258 | 4,200 | 4,166 |
Promoter holding has remained stable at 42.27% over recent quarters, but public shareholding has slightly increased, and the number of shareholders has declined, signaling possible consolidation among retail investors. FII and DII holdings remain negligible at 0%, indicating no institutional interest or confidence. The lack of foreign or domestic institutional participation raises concerns about liquidity and perceived investment quality.
⚖️ Peer Comparison — FMCG
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| HINDUNILVR | 4.69 L Cr | 31.3 | 29.8% | 30.7% | 0.00 |
| ITC | 3.34 L Cr | 16.8 | 36.0% | 27.8% | 0.03 |
| NESTLEIND | 2.78 L Cr | 73.0 | 99.2% | 73.9% | 0.00 |
| VBL | 1.37 L Cr | 40.6 | 21.5% | 17.4% | 0.10 |
| BRITANNIA | 1.25 L Cr | 47.9 | 54.1% | 51.1% | 0.27 |
| LENSKART | 1.15 L Cr | 173.3 | 11.9% | 7.7% | 0.03 |
| MARICO | 1.09 L Cr | 57.3 | 54.2% | 46.4% | 0.08 |
| TATACONSUM | 1.02 L Cr | 62.2 | 10.2% | 8.0% | 0.10 |
| GODREJCP | 92,112 | 48.1 | 17.8% | 15.1% | 0.33 |
| DABUR | 68,173 | 34.6 | 21.3% | 17.1% | 0.09 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Persistent negative operating cash flow, with OCF of ₹-11 crore in Mar 2025, raises solvency concerns despite temporary financing inflows. 2. High revenue volatility and declining peak sales (₹249 crore to ₹188 crore) suggest weak demand resilience or distribution constraints. 3. Extremely low margins and EPS instability indicate pricing pressure or high input costs with limited pricing power. 4. Absence of institutional ownership and zero FII exposure reflect limited market confidence and potential illiquidity.
📋 Recent Filings
-
🟡 Board Meeting 1 September 2026Simran Farms Ltd announced its 39th AGM on 24 September 2026 via VC/OAVM from Indore, seeking shareholder approval for remuneration of Non-Executive N...
-
🔴 annual report 1 September 2026Simran Farms Ltd's FY 2025-26 annual report shows revenue growth to ₹87,718.38 Lakhs but compressed margins due to rising input costs, with net profit...
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🟡 Board Meeting 1 September 2026Simran Farms announced that shareholders can vote electronically for its 39th Annual General Meeting scheduled for September 24, 2026 at 11:30 AM IST ...
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🔴 annual report 1 September 2026Simran Farms Limited informs shareholders without registered email addresses that the 39th Annual Report and AGM notice for FY2025-26 are available on...
🧠 Analyst's Read
Simran Farms operates as a small, undercapitalized FMCG player with inconsistent financial performance and no visible catalysts for improvement. Investors should monitor cash flow trends and any shift in management’s capital allocation strategy, but the current profile lacks the operational or financial stability to support a positive investment thesis.
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 2026-09-02.
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.
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