20% Upper Circuit: Stock skyrockets after reporting 472% YoY increase in net profit

Synopsis: A beverage stock hit a 20% upper circuit after posting a strong 472% year-on-year surge in net profit, backed by steady revenue growth and a sharp improvement in operating margins during Q3.

A micro-cap company engaged in the manufacture and distribution of packaged drinking water under the Bisleri brand has come into the spotlight after its stock hit a 20 percent upper circuit following the announcement of its Q3 results.

With a market capitalization of Rs. 46.70 crore, the shares of Orient Beverages Limited were trading at Rs. 221.85, hitting upper circuit of 20 percent from its previous day’s closing price of Rs. 184.90 per equity share. 

Q3FY26 Results

The company reported a strong revenue performance in Q3FY26, with revenue rising to Rs. 45.06 crore, marking a 16.5 percent YoY growth over Rs. 38.69 crore in Q3FY25 and a 8.2 percent QoQ increase from Rs. 41.64 crore in Q2FY26. The steady sequential and annual growth indicates improved business traction and better demand conditions during the quarter.

EBITDA saw a sharp improvement, coming in at Rs. 3.32 crore in Q3FY26, compared to Rs. 0.41 crore in Q3FY25, translating into a robust ~710 percent YoY growth, while it also increased ~118 percent QoQ from Rs. 1.52 crore in Q2FY26. This significant expansion reflects improved operating efficiency and better cost management.

Profit after tax also strengthened meaningfully, rising to Rs. 2.06 crore in Q3FY26 from Rs. 0.36 crore in Q3FY25, registering a strong ~472 percent YoY growth, and improving ~182 percent QoQ from Rs. 0.73 crore in Q2FY26. Overall, the company delivered a solid quarter with healthy revenue growth and sharp improvements in profitability on both a quarterly and annual basis.

Orient Beverages Limited, incorporated in 1960 and headquartered in Kolkata, operates in India’s beverage sector through its subsidiaries. The company manufactures and markets packaged drinking water under the Bisleri brand and soft drinks such as Gold Spot, Limca, Thums Up, Citra, and Bisleri Club Soda, while also having interests in real estate activities.

A return on equity (ROE) of about 11.6 percent, a return on capital employed (ROCE) of about 11.7 percent and debt to equity ratio at 3.46 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 10.5x lower as compared to its industry P/E 48.9x.  

Over the past five years, the company has demonstrated strong growth, achieving a revenue CAGR of 14 percent, a profit CAGR of 40 percent, and a price CAGR of 21 percent reflecting its operational performance and market confidence.

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