Shares of Bhatia Communications & Retail India Ltd witnessed a notable upswing on Monday, November 24, climbing over 3% during trading sessions as Dalal Street experienced a relief rally. The small-cap stock, trading under ₹50, surged as much as 3.3% to reach ₹25.53 per share.
Market Performance and Quarterly Results
While the benchmark indices Sensex and Nifty 50 remained relatively flat but in positive territory, Bhatia Communications stood out with its significant gains. This positive movement came alongside the company filing its investor presentation for the quarter ended September 2025 with the exchanges.
The company demonstrated robust financial health in Q2 FY26, reporting a substantial 25% year-on-year increase in revenue to ₹134.98 crore, compared to ₹107.69 crore in the same quarter last year. Net profit showed modest growth, rising 2% YoY to ₹3.73 crore from ₹3.66 crore previously.
Operational Strength and Expansion Strategy
Operational metrics revealed consistent improvement, with EBITDA reaching ₹6.25 crore, marking a 13% YoY increase from ₹5.54 crore in Q2 FY25. The EBITDA margin settled at 4.6%, slightly below the 5.1% recorded in the corresponding quarter last year.
For the first half of FY26, the company maintained steady performance with net profit of ₹7.31 crore, nearly unchanged from ₹7.30 crore in H1 FY25. Revenue for the six-month period grew 16% YoY to ₹247.18 crore, while EBITDA increased 12% YoY to ₹12.53 crore.
Looking forward, Bhatia Communications has charted an ambitious expansion roadmap focused on penetrating semi-urban markets across Maharashtra. The company aims to replicate its successful growth model from Gujarat, strengthening its market position while addressing rising consumer demand in underserved regions over the next two to three years.
Strong Foundation and Shareholder Returns
The company currently operates a substantial network of 253 stores, with additional outlets already in development. Its business strategy emphasizes customer-first approach, competitive pricing, exclusive brand partnerships, and maintains a net debt-free balance sheet, positioning it well to capitalize on emerging opportunities in India's rapidly evolving electronics retail sector.
In a move to reward shareholders, the Board of Directors recently recommended a second interim dividend of ₹0.01 per equity share, representing 1% of the face value. The record date for this dividend payment was set for November 21, 2025.
Despite recent challenges that saw Bhatia Communications share price decline over 12.5% in one month and 16% over three months, the stock has delivered impressive multibagger returns of nearly 240% over the past five years. The stock currently trades 26% below its 52-week high of ₹34.40 reached in December 2024, while having touched its 52-week low of ₹21.20 in May 2025.
Investment Disclaimer: This analysis is provided for educational purposes only. Readers are advised to consult with qualified investment advisors before making any financial decisions.
