Demerger Spin Off Value Unlock
Expected: March 2026MEDIUM confidence
What: subsidiary closure: 1 subsidiary dissolved
Impact: Reduction in consolidated drag
HMT Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +42.9%Weak6w StreakRe-Entry
In , HMT Ltd (Auto - Tractors) is outperforming Nifty 500 with +42.9% relative strength. Fundamentals: Weak. On a 6-week streak.
HMT Ltd Key Facts
- Market Cap
- ₹2,155 Cr
- PAT Growth YoY
- +47%
- Revenue Growth YoY
- -28%
- OPM
- -111.0%
- RS vs Nifty 500
- +42.9%
PE: At PeakFalling Knife
What's Happening
🔻Earnings declining and PE falling — fundamentals deteriorating
💰Trading 71% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Demerger Spin Off Value Unlock
March 2026MEDIUM
2. Management Or Ownership Change
April 2026LOW
Key Risks
1. Fines imposed by exchanges for non-compliance with board composition rules
MEDIUM2. Potential financial impact from the implementation of New Labour Codes
MEDIUM3. Ongoing legal disputes regarding cheque dishonor and recovery from stockists
LOWSector-Specific Signals
Machine Tools Revenue Contribution67.9%Not Given
Projects Segment Growth-91.5%-91.5%
Debtor Days318 daysNot Given
Book Value Per Share₹-53.37Not Given
Key Numbers
PAT Growth YoY
+47%
Inflection Up
Revenue YoY
-28%
Stable
Operating Margin
-111.0%
-5400 bps YoY
Current Price
₹61
Fundamental Score
30/100
Weak
3Y PAT CAGR
-50%
Market Cap
2.2K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are HMT Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Management Or Ownership Change
Expected: April 2026LOW confidence
What: CMD appointment: 1 new appointment
What Are the Key Risks for HMT Ltd?
Earnings deceleration risks from management commentary
Fines imposed by exchanges for non-compliance with board composition rules
MEDIUMTrigger: Fines imposed by exchanges for non-compliance with board composition rules.
Impact: PAT impact: ₹10.86 Lakh
Management view: Not Given
Monitor: regulatory
Potential financial impact from the implementation of New Labour Codes
MEDIUMTrigger: Potential financial impact from the implementation of New Labour Codes.
Management view: Monitoring
Monitor: labor
Ongoing legal disputes regarding cheque dishonor and recovery from stockists
LOWTrigger: Ongoing legal disputes regarding cheque dishonor and recovery from stockists.
Impact: PAT impact: ₹1.80 Cr
Management view: Appealed to Supreme Court
Monitor: litigation
What Did HMT Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹20.83 Cr
YoY -28.64%QoQ -19.36%
Revenue hit the lowest quarterly figure in recent history due to the erosion of manufacturing capabilities.
EBITDA
₹-23.13 Cr
YoY +46.37%Margin -111.04%
Operating losses narrowed year-on-year despite the revenue collapse, though margins remain deeply negative.
PAT
₹-27.24 Cr
YoY +46.88%QoQ +30.3%
Consolidated net loss narrowed significantly from the previous year's ₹51.28 Cr loss.
Other Highlights
• Standalone net profit of ₹6.70 Cr vs ₹6.59 Cr YoY.
• Negative shareholder equity of ₹1,897.90 Cr reported.
• Bad debt write-off of ₹18.07 Cr in Q3 FY26.
What Sector Metrics Matter for HMT Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Machine Tools Revenue Contribution
67.9%
YoY Not GivenQoQ Not Given
Why: Core segment remains the primary revenue driver despite overall decline.
Projects Segment Growth
-91.5%
YoY -91.5%QoQ Not Given
Why: Significant drag on overall performance due to lack of new project execution.
Debtor Days
318 days
YoY Not GivenQoQ Not Given
Why: Inefficient collection cycles and high credit risk.
Book Value Per Share
₹-53.37
YoY Not GivenQoQ Not Given
Why: Persistent losses have completely eroded the net worth.
Working Capital Deficit
₹1,812.49 Cr
YoY Not GivenQoQ Not Given
Why: Current liabilities significantly exceed current assets, indicating a liquidity crisis.
Promoter Holding
93.69%
YoY 0QoQ 0
Why: Government of India maintains near-total control.
What Is HMT Ltd's Management Guidance?
Forward-looking targets from management
Management Tone: CAUTIOUS
How Fast Is HMT Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | -28% | -7% | Stable |
| PAT (Net Profit) | +47% | -50% | Inflection Up |
| OPM | -111.0% | -5400 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Frequently Asked Questions: HMT Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were HMT Ltd's latest quarterly results?
HMT Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +47.1% (turning around (inflection up))
- Revenue Growth YoY: -27.6%
- Operating Margin: -111.0% (volatile)
Is HMT Ltd's profit growing or declining?
HMT Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +47.1% (latest quarter)
- PAT Growth QoQ: +30.8% (sequential)
- 3-Year PAT CAGR: -50.0%
- Trend: Turning around (inflection up) — consistent growth pattern
What is HMT Ltd's revenue growth trend?
HMT Ltd's revenue growth trend is stable.
- Revenue Growth YoY: -27.6%
- Revenue Growth QoQ: -19.2% (sequential)
- 3-Year Revenue CAGR: -6.9%
How is HMT Ltd's operating margin trending?
HMT Ltd's operating margin is volatile.
- Current OPM: -111.0%
- OPM Change YoY: -54.0% basis points
- OPM Change QoQ: +34.0% basis points
What is HMT Ltd's 3-year profit and revenue CAGR?
HMT Ltd's long-term compounding rates
- 3-Year Profit CAGR: -50.0%
- 3-Year Revenue CAGR: -6.9%
Is HMT Ltd's growth accelerating or decelerating?
HMT Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
- YoY Acceleration: +91.5% bps
- Sequential Acceleration: +70.1% bps
- Margin Warning: Operating margins are under pressure
What is HMT Ltd's trailing twelve month (TTM) performance?
HMT Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹-130 Cr
- TTM PAT Growth: -80.0% YoY
- TTM Revenue: ₹112 Cr
- TTM Revenue Growth: -26.3% YoY
- TTM Operating Margin: -131.5%
Is HMT Ltd overvalued or undervalued?
HMT Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
Is HMT Ltd a fundamentally strong company?
HMT Ltd is rated Weak with a fundamental score of 30/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: -27.6% (10% weight)
- PAT Growth YoY: +47.1% (10% weight)
- PAT Growth QoQ: +30.8% (10% weight)
- Margins stable (10% weight)
Is HMT Ltd debt free?
HMT Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹1,000 Cr
What is HMT Ltd's return on equity (ROE) and ROCE?
HMT Ltd's return ratios over recent years
- FY2023: ROCE 1.0%
- FY2024: ROCE 2.0%
- FY2025: ROCE 2.0%
Is HMT Ltd's cash flow positive?
HMT Ltd's operating cash flow is negative (FY2025).
- Cash from Operations (CFO): ₹-46 Cr
- Free Cash Flow (FCF): ₹-16 Cr
What is HMT Ltd's dividend yield?
HMT Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹61
Who holds HMT Ltd shares — promoters, FII, DII?
HMT Ltd's shareholding pattern (Mar 2026)
- Promoters: 93.7%
- Public: 0.7%
Is promoter holding increasing or decreasing in HMT Ltd?
HMT Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 93.7% (Mar 2026)
- Previous Quarter: 93.7% (Dec 2025)
- Change: 0.00% (stable)
How long has HMT Ltd been outperforming Nifty 500?
HMT Ltd has been outperforming Nifty 500 for 6 consecutive weeks, indicating building momentum.
Is HMT Ltd a new momentum entry or an established outperformer?
HMT Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for HMT Ltd?
HMT Ltd has 2 key growth catalysts identified from recent earnings analysis
- Demerger Spin Off Value Unlock — Closing loss-making subsidiaries reduces the consolidated financial drain.
- Management Or Ownership Change — Leadership changes from BHEL may bring operational discipline but impact is yet to be seen.
What are the key risks in HMT Ltd?
HMT Ltd has 3 key risks worth monitoring
- [MEDIUM] Fines imposed by exchanges for non-compliance with board composition rules — Fines imposed by exchanges for non-compliance with board composition rules.
- [MEDIUM] Potential financial impact from the implementation of New Labour Codes — Potential financial impact from the implementation of New Labour Codes.
- [LOW] Ongoing legal disputes regarding cheque dishonor and recovery from stockists — Ongoing legal disputes regarding cheque dishonor and recovery from stockists.
What is HMT Ltd's management guidance for growth?
HMT Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
- Management tone: cautious
What sector-specific metrics matter most for HMT Ltd?
HMT Ltd's most important sub-sector-specific KPIs from the latest concall
- Machine Tools Revenue Contribution: 67.9% (YoY Not Given) (QoQ Not Given) — Core segment remains the primary revenue driver despite overall decline.
- Projects Segment Growth: -91.5% (YoY -91.5%) (QoQ Not Given) — Significant drag on overall performance due to lack of new project execution.
- Debtor Days: 318 days (YoY Not Given) (QoQ Not Given) — Inefficient collection cycles and high credit risk.
- Book Value Per Share: ₹-53.37 (YoY Not Given) (QoQ Not Given) — Persistent losses have completely eroded the net worth.
- Working Capital Deficit: ₹1,812.49 Cr (YoY Not Given) (QoQ Not Given) — Current liabilities significantly exceed current assets, indicating a liquidity crisis.
- Promoter Holding: 93.69% (YoY 0) (QoQ 0) — Government of India maintains near-total control.
Is HMT Ltd worth studying for long term investment?
Based on quantitative research signals, here is why HMT Ltd may be worth studying
- Earnings growing at +47.1% YoY
What is the investment thesis for HMT Ltd?
HMT Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Demerger Spin Off Value Unlock
Risk Factors (Bear Case)
- Margins under pressure
- Appears significantly overvalued
- Key risk: Fines imposed by exchanges for non-compliance with board composition rules
What is the future outlook for HMT Ltd?
HMT Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Demerger Spin Off Value Unlock
- Key Risk: Fines imposed by exchanges for non-compliance with board composition rules
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.