Shanthi Gears Reports Q2 Net Profit Down 27% Despite Record Order Book

Shanthi Gears, a subsidiary of Tube Investments of India Ltd, has released its financial results for the second quarter ended September. The Coimbatore-based manufacturer of gears and gear products registered a 27 per cent decrease in net profit, bringing the figure down to ₹15.7 crore compared to ₹21.5 crore recorded in the same period of the previous year.

During the same quarter, the company's revenue from operations saw a decline of 3 per cent, dropping to ₹128 crore from ₹132 crore in the corresponding period last year. According to the company, an increase in depreciation and amortisation, alongside higher other expenses, impacted the bottom line for the September quarter.

Despite the drop in net profit and revenue, Shanthi Gears achieved its highest-ever order booking of ₹192 crore in Q2, representing a 37 per cent increase from the year-ago period. The company's unexecuted order book stood at ₹436 crore as of September 30, 2026.

In terms of financial efficiency and capital allocation, the firm achieved a Return on Average Invested Capital of 25 per cent during the quarter, alongside generating a negative free cash flow of ₹1.3 crore.

Following the financial announcement, Shanthi Gears’ share price on the National Stock Exchange (NSE) closed at ₹476 on Monday. This marked a decrease of ₹7.75, or 1.60 per cent, from the previous trading day's close.

"A 27 per cent dip in net profit alongside rising expenses indicates short-term margin pressures, yet achieving a record order booking of ₹192 crore demonstrates strong underlying demand in the market. For manufacturing enterprises like Shanthi Gears, balancing cost inflation with robust order execution will be crucial to converting future order books into sustainable bottom-line growth." — Dr. Shishir Gupta, Founder & CEO, StartupLanes