Anup Engineering Ltd. shares tumbled as much as 7% on Friday, November 6, as institutional and retail investors dumped the stock following a steep collapse in second-quarter profitability.
Capital goods buyers backed away. According to the company's regulatory filing for the September quarter, net profit slumped 79.4% year-on-year to ₹6.6 crore, down from ₹32 crore in the corresponding quarter last year. Revenue dropped 21.5% to ₹182.4 crore compared to ₹232.3 crore recorded during the same stretch twelve months earlier.
The operational picture darkened just as quickly. Operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) contracted 66.1% to ₹17.4 crore from ₹51.4 crore a year ago. That performance hammered operating margins down to 9.5%, shedding 1,250 basis points from the 22% margin delivered in the prior-year period.
| Metric | Q2 Current Year | Q2 Previous Year | YoY Change |
|---|---|---|---|
| Revenue | ₹182.4 crore | ₹232.3 crore | -21.5% |
| EBITDA | ₹17.4 crore | ₹51.4 crore | -66.1% |
| EBITDA Margin | 9.5% | 22.0% | -1,250 bps |
| Net Profit | ₹6.6 crore | ₹32.0 crore | -79.4% |
Fred of momentum, the stock faced relentless selling right from the opening bell. Friday's rout deepens an ongoing operational slump rather than marking an isolated stumble. The engineering equipment maker endured a bruising start to the financial year when its first-quarter net profit plummeted 98% on revenue of ₹125 crore, which sparked a 14% single-session crash.
Cumulative numbers for the first half of the fiscal year show an 88% drop in overall profit as severe margin compression took hold across key product lines. And with cost inflation biting into project execution, traders pushed the stock to session lows as the broader market assessed whether operating margins have hit bottom.