Shares of penny stock below ₹20 Sadbhav Engineering continued their upward momentum on Tuesday, August 19, hitting the 10 percent upper circuit at ₹14.44 in intra-day trading. This marked the second consecutive session of locked gains, with the stock adding 21 percent in just two days. The sharp rally came in the backdrop of strong earnings for the June quarter of FY26.
Despite the recent surge, the stock has struggled for most of the year. On a year-to-date basis, Sadbhav Engineering has lost 52 percent of its market value, while in the past one year, it has declined nearly 55 percent. The company has seen a volatile performance in 2025, recovering in August with gains of over 19 percent after three straight months of losses.
The stock had slumped to its 52-week low of ₹10.79 on March 28, 2025. On the other hand, it touched its 52-week high of ₹38.70 on September 6, 2024, underlining the sharp swings that investors have faced over the past year.
Q1 Earnings turnaround
The latest rally was fuelled by the company’s turnaround in profitability during the April–June quarter. Sadbhav Engineering reported a consolidated net profit of ₹31.2 crore in Q1FY26, compared with a loss of ₹30.74 crore in the same quarter a year ago. This marked a significant improvement in the company’s financial performance.
However, revenue from operations declined sharply, slipping 26.25 percent year-on-year to ₹222 crore from ₹301 crore in the previous year’s corresponding quarter. The fall in revenue suggests continued challenges in the company’s execution pipeline, despite the profit turnaround.
Alongside its results, Sadbhav Engineering also announced the re-appointment of Shashin Patel as chairman and managing director. His tenure, which was set to end in December 2025, has now been extended for another three years until December 2028. The company noted that the decision was made on the recommendation of its Nomination and Remuneration Committee, underlining a focus on leadership continuity as the firm navigates its financial recovery.
Sadbhav Engineering operates in the infrastructure development space, with interests across roads, bridges, irrigation projects, canals, and mining activities on a contractual basis. The company has historically been involved in several high-value infrastructure projects across India but has faced financial stress in recent years, leading to subdued stock performance.
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