Shanthi Gears Shares Slide Over 6% After Q2 Profit Drops 16% YoY; Revenue Down 15%

Shares of Shanthi Gears Ltd fell more than 6% to ₹493.65 apiece, marking a three-month low on October 24, after the company reported a decline in its July–September quarter (Q2 FY26) earnings. The net profit for the quarter stood at ₹21.5 crore, down 16% YoY from ₹25.63 crore in Q2 FY25. Revenue from operations also slipped 15% YoY to ₹132 crore, compared with ₹155 crore in the year-ago period. Earnings per share (EPS) declined to ₹2.80, versus ₹3.34 last year. Despite weaker topline performance, Shanthi Gears reported a 7% rise in booked orders to ₹138 crore during the quarter, with an unexecuted order book of ₹254 crore as of September 30, 2025. The company achieved a Return on Average Invested Capital (ROIC) of 46% and generated ₹12.68 crore in free cash flow in Q2 FY26. Following the initial drop, the stock recovered partially and was last seen trading 3% lower at ₹512.85 as of 2:54 PM. The stock has fallen 7% in the past month but remains up around 2% year-to-date in 2025. Shanthi Gears currently trades at a P/E ratio of about 42. Heavy trading activity was witnessed, with over 2.36 lakh shares exchanged — nearly three times the 10-day average volume, reflecting heightened investor reaction to the earnings report. #ShanthiGears #Q2Results #EarningsUpdate #StockMarketIndia #AutoComponents #MachineryStocks #QuarterlyResults #StockYardResearch #IndianStocks #MarketUpdate