Munjal Showa Shares Rise 5% After Financial Results

Key numbers

Market Cap	₹518.74 CrSmall Cap
P/E TTM	20.9xSector 32.38x
RSI	63.67Strong Zone
Promoter Holding	65.02%Zero Pledge

Key highlights

• Revenue from operations grew 19.5% year-on-year to ₹398 crore in Q2-27
• Standalone net profit reached ₹8.8 crore, marking a 225.9% increase over Q2-26
• Operating margins improved to 3.0% from 1.2% in the corresponding quarter last year
• Cost of materials consumed remained the primary expense driver at ₹312.6 crore
• The board previously approved a 225% final dividend of ₹4.50 per share for FY26

Revenue Growth and Margin Expansion

Munjal Showa Limited reported standalone revenue from operations of ₹398 crore for the second quarter of FY27, representing a 14.4% sequential increase from ₹348 crore in Q1-27. On a year-on-year basis, the top line grew by 19.5% from ₹333 crore. This revenue growth was accompanied by a significant expansion in operating margins, which rose to 3.0% compared to 1.2% in the same quarter of the previous year.

However, the margin saw a slight contraction from the 3.6% recorded in the immediate previous quarter, reflecting fluctuations in operational costs and raw material procurement during the period.

Cost Structures and Profitability Analysis

• Total expenses for the quarter stood at ₹390.3 crore, up from ₹347.7 crore in the previous quarter
• Raw material costs accounted for ₹312.6 crore, representing 78.5% of total revenue
• Employee benefit expenses were maintained at ₹34.75 crore, showing stability in workforce costs
• Other income fell sharply to ₹4.3 crore in Q2-27 from ₹13.1 crore in Q1-27, impacting sequential profit growth
• Net profit for the quarter stood at ₹8.8 crore, a 21.4% decline from the ₹11.2 crore achieved in Q1-27

Market Valuation and Technical Standing

The company currently trades at a Price-to-Earnings (P/E) ratio of 20.9x, which remains significantly lower than the industry average of 41.5x. With a market capitalization of ₹518.74 crore, the stock has shown a 4.34% gain over the past week and a 6.92% gain over the past month. Technical indicators place the stock above its 30-day, 50-day, and 200-day Simple Moving Averages, with the current price of ₹129.7 trending near its 100-day SMA of ₹129.44.

Promoter holding has remained unchanged at 65.02% over the last four quarters, with no shares pledged.

Segment Reporting and Corporate Governance

As the Company's business activities fall within a single primary business segment viz. auto components, hence only one reportable operating segment as per Ind-AS 108 : Operating Segments.

What to watch next

• Reopening of the insider trading window after November 15, 2026
• Impact of automotive OEM delivery schedules on Q3 production volumes
• Announcement of Q3 FY27 financial results expected in February 2027

“The Board of Directors of the Company, at its meeting held today i.e. November 13, 2026, has inter-alia approved the Unaudited Standalone Financial Results of the Company for the quarter and half year ended September 30, 2026.”

Munjal Showa · financial snapshot

Share price	₹129.7
Market capitalisation	₹518.74 Cr
Revenue (annual)	₹1,315.42 Cr
Net profit (annual)	₹21.87 Cr
Revenue (latest quarter)	₹347.50 Cr+0.12% vs previous quarter
Net profit (latest quarter)	₹11.23 Cr+24881.02% vs previous quarter
P/E (TTM)	20.9×Sector 32.38×
Promoter holding	65.02%0.00% QoQ
FII holding	0.05%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.