Shanthi Gears shares drop 6%, hit three-month low after Q2 net profit falls 16% to Rs 21.5 crore

Shanthi Gears share price

The shares of Shanthi Gears dropped more than 6 percent to hit a three-month low of Rs 493.65 apiece on October 24. This came after the company released its results for the July-September quarter of the financial year 2026.

Shanthi Gears on Friday reported a net profit of Rs 21.5 crore for the second quarter of the ongoing FY26. This marks a 16 percent year-on-year (YoY) fall from the Rs 25.63 crore net profit reported in the corresponding quarter of FY25.

The firm's revenue from operations meanwhile fell nearly 15 percent YoY to Rs 132 crore in Q2 FY26, from Rs 155 crore in Q2 FY25. Earnings per share (EPS) also reduced to Rs 2.80 during the quarter under review, from Rs 3.34 in the same period last year.

Shanthi Gears said its booked orders during the quarter rose 7 percent to Rs 138 crore. Unexecuted order book as on September 30 stood at Rs 254 crore. It achieved return on average invested capital (ROIC) of 46 percent in Q2 FY26, and generated free cash flow of Rs 12.68 crore during the period.

Shanthi Gears shares later made some recovery after a sharp drop following the Q2 results announcement. The shares were down nearly 3 percent to trade at Rs 512.85 apiece, as seen at 2.54 pm. The stock has fallen over 7 percent in the past one month, but gained nearly 2 percent in the past six months.

Shanthi Gears shares, which currently have a P/E ratio of around 42, are up around 2 percent in 2025 so far. Before the company released its results, the stock was up nearly 3 percent. However, the Q2 results dampened investor sentiment.

Over 2.36 shares have already been involved in active trade during the day. This is nearly 3 times that of the stock's 10-day average volume.

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