Stock backed by Madhusudan Kela reports ₹10 Cr loss against profit of ₹70 Cr last year

Synopsis: A Madhusudan Kela-backed small-cap stock fell nearly 5% after reporting a ₹9.85 crore net loss, with revenue down 22% YoY and negative EBITDA. Rising inventory and margin pressures drove the decline.

A small-cap company, primarily engaged in the business of Real Estate Development, Polyester Staple Fibre and Retail (Textiles), has come into the spotlight following the announcement of its Q3 financial results, attracting attention from investors and market watchers.

With a market capitalization of Rs. 2,489.37 crore, the shares of Bombay Dyeing & Manufacturing Company Limited were trading at Rs. 120.53, down by 2.05 percent from its previous day’s closing price of Rs. 123.05 per equity share. The stock has touched intraday low of Rs. 117.29, implying downside of 4.69 percent from previous day’s closing price.

As of December 2025, renowned investor Madhusudan Kela holds a 1.59 percent stake in the company through Madhuri Madhusudan Kela, reflecting his strategic interest in the stock.

Q3FY26 Results

Bombay Dyeing reported revenue of Rs. 324.02 cr in Q3FY26, down 21.9 percent YoY from Rs. 414.81 cr in Q3FY25 and 10.6 percent QoQ from Rs. 362.63 cr in Q2FY26, indicating a significant decline in sales this quarter.

The company posted a negative EBITDA of Rs. 27.48 cr in Q3FY26, compared to a positive Rs. 15.90 cr in Q3FY25 and down from a negative Rs. 12.71 cr in Q2FY26, signaling margin pressures and higher costs relative to revenue.

Net profit fell sharply to a loss of Rs. 9.85 cr in Q3FY26, against a profit of Rs. 70.06 cr in Q3FY25 and a marginal profit of Rs. 1.92 cr in Q2FY26, highlighting continued operational and profitability challenges.

The sharp decline in profit for Q3FY26 is largely attributed to a significant increase in inventory. The change in inventory rose from Rs. 8.89 cr in Q3FY25 to Rs. 48.99 cr in Q3FY26, which increased the cost of goods sold and reduced overall profitability. This higher stock buildup suggests either slower sales or strategic stocking, but it directly impacted the company’s margins, contributing substantially to the year-on-year fall in net profit.

The Bombay Dyeing and Manufacturing Company Limited is an India-based company engaged in polyester staple fiber production, textile retailing, and real estate development. It operates through three segments: Real Estate, Polyester, and Retail/Textile. The company manufactures polyester staple fiber and textile-grade PET chips, retails textile products, and develops residential, commercial, hospitality, healthcare, educational, and retail properties. Incorporated in 1879, it is headquartered in Mumbai, India.

A return on equity (ROE) of about 1.37 percent, a return on capital employed (ROCE) of about 2.61 percent and debt to equity ratio at 0 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 135x higher as compared to its industry P/E 19.8x.  

As of December 2025, the shareholding pattern of Bombay Dyeing shows that promoters hold a majority stake of 53.56 percent, while foreign institutional investors (FIIs) and domestic institutional investors (DIIs) hold 0.88 percent and 0.98 percent, respectively. The remaining 44.58 percent of the shares are held by the public, reflecting a relatively concentrated promoter ownership alongside a significant public float.

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