Shanthi Gears Shares Slip Over 6% After Weak Q2 FY26 Earnings

Shares of Shanthi Gears Ltd fell more than 6% to a three-month low of ₹493.65 on October 24 after the company reported a decline in profit and revenue for the July–September quarter of FY26. The gear manufacturer’s net profit dropped 16% YoY to ₹21.5 crore, compared to ₹25.63 crore in the same quarter last year. Revenue from operations declined nearly 15% YoY to ₹132 crore, while earnings per share (EPS) slipped to ₹2.80 from ₹3.34 in Q2 FY25. Despite the weak performance, order bookings rose 7% during the quarter to ₹138 crore, and the company’s unexecuted order book stood at ₹254 crore as of September 30, 2025. Shanthi Gears also reported a strong return on average invested capital (ROIC) of 46% and generated free cash flow of ₹12.68 crore. Following the initial sell-off, the stock recovered part of its losses, trading 3% lower at ₹512.85 as of 2:54 pm. The counter has fallen 7% in the past month, but remains up 2% year-to-date (YTD). At a P/E ratio of around 42, Shanthi Gears continues to trade at a premium valuation. However, muted Q2 results dampened investor sentiment, leading to heavy trading volumes, with over 2.36 lakh shares traded — nearly three times its 10-day average. #ShanthiGears #Q2Results #EarningsUpdate #StockMarketIndia #EngineeringStocks #MidcapStocks #MarketUpdate #StockNews #Investing #BSE #NSE #FinancialResults #IndiaMarkets #AutoAncillary #StockAnalysis #StockMarketToday