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Earnings · Auto Ancillary · Micro cap

Sal Automotive's profit shrinks 21% even as sales tick up

A ₹99 crore company squeezed by costs. Revenue grew, but profit fell to ₹426 lakhs.

1 earlier story on Sal Automotive Ltd.
Mkt cap₹88.02 cr
P/E20.66×
ROE12.54%
Debt / eq.0.51
Div yld1.10%
21% Decline in full-year net profit.

What's new

  • Full-year revenue from operations grew 1.8% to ₹38,444 lakhs.
  • Net profit fell 21% to ₹426 lakhs from ₹539 lakhs in the prior year.
  • The board recommended a dividend of ₹2 per share.

Why this matters

A profit drop on flat revenue signals margin pressure for a company with a market cap of just ₹99 crore. With net profit at ₹426 lakhs, there is little buffer against cost increases.

What we're watching

  • Quarterly margin trends in FY26 to see if the pressure abates.
  • Management's commentary on input costs and pricing in the next concall.
  • Whether the dividend is sustainable at this profit level.

The full read

Sal Automotive's year was simple. Revenue rose 1.8% to ₹38,444 lakhs. Profit fell 21% to ₹426 lakhs. For a company with a ₹99 crore market cap, that profit number is thin. The results follow prior quarterly trends, offering no new explanation for the margin squeeze. The board did recommend a ₹2 per share dividend. The open question is what is pressuring profitability. The filing is silent. Hardly a crisis, but for a nano-cap, every basis point of margin matters.

Questions answered

How did revenue and profit move in the full year?
Revenue from operations increased 1.8% to ₹38,444 lakhs, but net profit declined 21% to ₹426 lakhs from ₹539 lakhs in the previous year.
What dividend did the board approve?
The board recommended a final dividend of ₹2 per share.
Did the filing provide any new guidance or outlook?
No. The results are a routine update containing no new guidance, profit warnings, or material surprises beyond the disclosed numbers.
What does the profit decline mean for a company of this size?
It means the margin for error is tiny. On a ₹99 crore market cap, a ₹426 lakh profit leaves almost no room for further cost shocks or revenue slowdowns.
Mentioned: Sal Automotive Ltd. · ₹38,444 lakhs · ₹426 lakhs
Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.

Company snapshot

Sal Automotive Ltd.

Auto Ancillary
₹104 cr
P/E 24.42×

Latest quarter · Dec 2021

Sales₹73 cr
Net profit₹0 cr
Op. margin+26.2%
EPS−₹0.37

Strength & growth

Debt / equity0.51×
Current ratio1.06×
Sales CAGR+14.9%
EPS CAGR+10.0%
  1. 22 May 2026 · 3:35 PM IST Sal Automotive's profit shrinks 21% even as sales tick up
  2. 45d ago Sal Automotive posts flat revenue and a 21% profit drop