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
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%
Story so far
All notes on SALAUTO →- 22 May 2026 · 3:35 PM IST Sal Automotive's profit shrinks 21% even as sales tick up
- 45d ago Sal Automotive posts flat revenue and a 21% profit drop