RJ Shah's revenue fell 97%. Its profit came entirely from bank interest.
The civil engineering firm's core business has essentially stopped. A ₹229.83 lakh interest bill kept it in the black.
— 1 earlier story on RJ Shah & Company Ltd. →What's new
- Revenue from operations collapsed 97% to ₹27.10 lakhs for FY26.
- Net profit of ₹240.73 lakhs was driven by ₹229.83 lakhs in interest income.
- Board recommended a final dividend of ₹2.50 per share (25% payout).
Why this matters
This is a company that has stopped operating. The entire profit is a function of sitting on cash, not executing projects. A dividend on the back of interest income is a return of capital, not a sign of business health. For a nano-cap with a ₹13 crore market value, the path back to operational relevance is the only question.
What we're watching
- Any disclosure on contract inflows or the order pipeline.
- Management commentary on why core revenue has evaporated.
- Cash balance drawdown if dividends continue.
The full read
RJ Shah & Company's operational business has vanished. Revenue fell 97% to ₹27.10 lakhs in FY26. The company still booked a ₹240.73 lakh net profit, but the number is an accounting mirage. ₹229.83 lakhs of that profit came from interest on its cash balances. The board recommended a 25% dividend (₹2.50 per share), a cash return funded by the treasury, not by civil engineering projects. For a nano-cap with a ₹13 crore market value, the interest income alone is almost double the company's entire equity value. The operational story is gone; what remains is a holding company distributing its bank interest.
Questions answered
- Why did revenue fall so sharply?
- The filing does not specify a reason. Revenue from the civil engineering business dropped 97% to ₹27.10 lakhs, indicating the core operations have effectively halted. There is no mention of new contracts or order inflows.
- How did the company post a profit with almost no revenue?
- The ₹240.73 lakh net profit was almost entirely generated by ₹229.83 lakhs in interest income from the company's cash balances. Without this treasury income, the firm would have reported an operational loss.
- What is the dividend based on?
- The 25% final dividend (₹2.50 per share) is being paid from profits that are themselves derived from interest on cash holdings. It represents a payout to shareholders from the company's treasury, not from operational cash flow.
- What does the interest income tell us about the balance sheet?
- It implies the company holds a substantial cash pile relative to its ₹13 crore market cap. At a rough 8% interest rate, the ₹229.83 lakh interest suggests cash or deposits of around ₹29 crore, more than double the market value.
Story so far
All notes on RJSHAH →- 29 May 2026 · 5:19 PM IST RJ Shah's revenue fell 97%. Its profit came entirely from bank interest.
- 1d ago R.J. Shah's revenue fell 97%. Profit is now interest income.