Sagardeep Alloys Ltd (SAGARDEEP)
🎯 Key Takeaways
- Sagardeep Alloys Ltd is in a stable, cash-generative phase with modest profitability and low leverage, operating within the non-ferrous metals sector. The company has demonstrated consistent financial discipline, with improving margins and stable equity base over recent quarters.
- Revenue declined 19% QoQ to ₹57 in Q1FY27.
- ⚠️ Margin compression is evident as operating profit declined faster than revenue, raising concerns about cost efficiency or pricing pressure in core ope
- ROE
- 8.8%
- ROCE
- 11.9%
- Debt/Equity
- 0.26
- Promoter
- 72.7%
📖 The Story
Sagardeep Alloys Ltd is in a stable, cash-generative phase with modest profitability and low leverage, operating within the non-ferrous metals sector. The company has demonstrated consistent financial discipline, with improving margins and stable equity base over recent quarters. Management is focused on governance compliance and operational continuity rather than aggressive expansion.
📰 What's Happening
In Q1 FY27 (June 2026), the company reported revenue of ₹57 lakhs with an operating profit of ₹1 lakh and net profit of ₹1 lakh, reflecting margin compression from prior quarters. The board approved unaudited Q1 results and appointed M/s Ashish Sheth & Associates as statutory auditors for a five-year term pending shareholder approval at the upcoming AGM. Earlier, on May 22, 2026, the company finalized FY26 audited results, accepted the resignation of CFO Shashwat Shah effective August 25, and appointed Siddhi Shah & Associates as new secretarial auditor. A board meeting on August 20 confirmed the CFO vacancy and compliance with SEBI LODR norms. Trading restrictions were imposed around result announcements, with the trading window closing on July 1, 2026, for Q1 FY27 results.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 34 | 39 | 70 | 57 |
| Operating Profit | 0 | 0 | 3 | 1 |
| OPM % | 0.0% | 0.8% | 4.1% | 2.2% |
| Net Profit | 0 | 0 | 2 | 1 |
| EPS | ₹0.25 | ₹0.19 | ₹0.93 | ₹0.45 |
Revenue declined from ₹70 lakhs in Q4 FY26 to ₹57 lakhs in Q1 FY27, while operating profit fell from ₹3 lakhs to ₹1 lakh, indicating pressure on top-line performance. However, margins remained stable at 2.2% in Q1 FY27 compared to 4.1% in the prior quarter, suggesting cost management is holding pace despite lower volumes or pricing. Net profit dropped to ₹1 lakh from ₹2 lakhs, and EPS declined to ₹0.45 from ₹0.93, reflecting the earnings compression. Despite this, the company maintains a going concern status with no material uncertainties disclosed by auditors.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance on revenue or profitability in the available filings. However, the appointment of new statutory and secretarial auditors signals a focus on governance continuity. The CFO's resignation is acknowledged as a potential short-term disruption but not a strategic shift. The company will notify exchanges upon appointing a successor CFO, indicating procedural diligence. No new business initiatives or capacity expansions were disclosed in recent board outcomes.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 16 | 16 | 17 | 16 |
| Reserves | 14 | 12 | 18 | 14 |
| Borrowings | 6 | 13 | 9 | 14 |
| Total Liabilities | 40 | 47 | 49 | 48 |
| Fixed Assets | 9 | 12 | 12 | 10 |
| Investments | 1 | 0 | 0 | 0 |
| Total Assets | 40 | 47 | 49 | 48 |
The balance sheet shows a stable capital structure with equity of ₹17 lakhs and reserves of ₹18 lakhs as of March 2026, up from ₹16 and ₹14 respectively in the prior year. Borrowings remain low at ₹9 lakhs, down from ₹14 lakhs a year ago, indicating prudent deleveraging. Total assets grew to ₹49 lakhs from ₹40 lakhs in March 2025, driven by operational scale. The low debt-to-equity ratio of 0.19 underscores minimal financial risk and conservative capital allocation.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +4 |
| Investing | +4 |
| Financing | -7 |
| Net Cash Flow | +0 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 74.2% | 73.6% | 72.7% | 72.7% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 24.4% | 25.1% | 26.0% | 25.9% |
| # Shareholders | 12,541 | 12,504 | 12,368 | 12,386 |
Promoter holding has gradually declined from 74.24% in Q2 FY26 to 72.69% in Q1 FY27, while public shareholding increased slightly, suggesting minor diversification. The number of shareholders rose to 12,386 from 12,541, indicating stable retail interest. FII and DII holdings remain negligible at 0%, implying limited institutional interest. No pledging or significant share buybacks were disclosed, and no changes in promoter stake were reported recently.
⚖️ Peer Comparison — Non Ferrous Metals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| HINDZINC | 2.39 L Cr | 14.0 | 76.5% | — | 0.36 |
| HINDALCO | 2.15 L Cr | 13.0 | 11.1% | — | 0.71 |
| VAML | 1.71 L Cr | — | — | — | -0.81 |
| VEDL | 1.01 L Cr | 5.1 | 27.0% | — | 0.65 |
| NATIONALUM | 63,639 | 9.4 | 42.2% | — | 0.00 |
| HINDCOPPER | 45,842 | 40.4 | 44.4% | — | 0.03 |
| GRAVITA | 10,681 | 26.9 | 21.0% | — | 0.14 |
| JAINREC | 9,909 | 27.0 | 20.9% | — | 0.81 |
| PRECWIRE | 9,165 | — | — | — | 0.14 |
| KSHINTL | 6,977 | 50.1 | 33.9% | — | 1.21 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Margin compression is evident as operating profit declined faster than revenue, raising concerns about cost efficiency or pricing pressure in core operations. 2. Persistent cash flow from operations remains negative (₹492.33 lakhs in latest filing), despite positive net profit, indicating working capital stress or non-cash expenses. 3. Low institutional interest and thin public float may lead to price volatility. 4. Governance changes, including CFO resignation and auditor transitions, introduce short-term reporting uncertainty despite compliance assurances.
📋 Recent Filings
- 🟡 Board Meeting2026-08-20Sagardeep Alloys Limited announced board meeting outcomes on August 20, 2026, appointing PNK & Co as secretarial auditor for 2026-31 and Priyank Patel…
- 🟡 Board Meeting2026-08-11Sagardeep Alloys Limited announced the outcome of its board meeting held on August 11, 2026, approving unaudited standalone and consolidated financial…
- Financial Results2026-07-09Sagardeep Alloys Limited disclosed revised standalone and consolidated financial results for the quarter and year ended March 31, 2026, following boar…
- Financial Results2026-06-26Sagardeep Alloys Limited announced that its trading window will close on July 1, 2026, to facilitate consideration and approval of the unaudited finan…
- 🔴 Financial Results2026-06-19No summary available
- 🟡 Board Meeting2026-05-22Sagardeep Alloys Limited announced the outcome of its board meeting held on May 22, 2026, where it approved the standalone and consolidated audited fi…
- share transfer2026-04-10Sagardeep Alloys Limited received a Regulation 74(5) certificate from MUFG Intime India confirming dematerialisation of securities for the quarter end…
- Announcement2026-04-07Sagardeep Alloys Limited filed a general corporate document on the NSE. Without access to specific filing details, material information regarding oper…
- Announcement2026-04-02Sagardeep Alloys Limited filed a general corporate document on April 2, 2026. Without access to specific filing details, the material contents—includi…
- 🔴 Financial Results2026-03-30Sagardeep Alloys Limited announced closure of its trading window from April 1, 2026, until 48 hours after announcing audited financial results for the…
🧠 Analyst's Read
Sagardeep Alloys operates as a small-cap, cash-flow-sensitive entity in a capital-intensive sector, with recent financial performance showing signs of operational softness. Investors should monitor the impact of leadership changes and auditor transitions on reporting quality, as well as any signs of recovery in margins or cash generation. The lack of institutional inflows and modest promoter stake reduction warrants attention, though governance compliance remains intact.
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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