Auto ancillary stock skyrockets 17% after company’s net profit increases by 82% QoQ

Synopsis:
The company reported robust Q1 FY26 results with strong QoQ growth, with total income rising 43%, PBT surged 85.9%, and PAT jumped 82.5%. YoY performance also remained positive, reflecting consistent revenue expansion and improved profitability.

Piston Group Company has reported its unaudited standalone financial results for the quarter ended June 30, 2025. The company posted strong sequential growth in revenue and profits, driven by improved operational performance, despite a slight decline on a year-on-year basis in profitability.

With market capitalization of Rs. 346 cr, the shares of Menon Pistons Ltd are currently trading at Rs. 67.42, up by 17% from its previous closing of Rs. 60.77 per share making today’s high of Rs. 71.85 per share.

Q1FY26 Results

In Q1 FY26, the company delivered a strong quarter-on-quarter performance. Total income surged by 43% to ₹80.97 crore from ₹56.63 crore in Q4 FY25. Profit Before Tax (PBT) saw an impressive growth of 85.9%, rising to ₹10.44 crore from ₹5.62 crore. Net Profit (PAT) followed suit, increasing by 82.5% to ₹7.77 crore compared to ₹4.25 crore in the preceding quarter. Earnings Per Share (EPS) also improved significantly to ₹1.52 from ₹0.83, reflecting enhanced profitability.

On a year-on-year basis, the performance remained positive. Total income climbed 16.4% from ₹69.55 crore in Q1 FY25 to ₹80.97 crore in Q1 FY26. PBT grew by 10.5% to ₹10.44 crore from ₹9.45 crore, while PAT increased 9.9% to ₹7.77 crore against ₹7.07 crore last year. EPS also moved up to ₹1.52 from ₹1.39, highlighting steady earnings growth.

About the company

The Company is into manufacturing of auto components such as Pistons, Gudgeon Pins, Rings, Auto shafts required for commercial vehicles, tractors and heavy duty stationery engines. The market is divided into segments such as export market, replacement market, OEM market. The auto component manufacturers mainly cater to two types of buyers, i.e. the original equipment manufacturers (OEMs) and the Engine Overhauling segment. While demand in the former is dependent on the production of new vehicles, the latter, i.e. the Engine Overhauling segment, is lucrative due to its size and unlike the OEM segment, it is not cyclical.

The company has demonstrated strong financial efficiency, with a Return on Capital Employed (ROCE) of 21.6% and a Return on Equity (ROE) of 16.1%, reflecting effective utilization of capital and shareholder equity. Additionally, it has maintained a healthy dividend payout ratio of 20.8%, indicating consistent returns to shareholders while balancing reinvestment for growth.

Written by Manideep Appana

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