Operating leverage from scaling operations
Expected: OngoingHIGH confidence
What: Continued revenue growth at 75.10% 5-year CAGR enabling better fixed cost absorption
“Operating margins expanded from 8.14% in Q3 FY25 to 10.20% in Q3 FY26”
Macfos Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +23.3%Average6w Streak
In Week of Mar 28, 2026, Macfos Ltd (E-Commerce - Platform - Utility) is outperforming Nifty 500 with +23.3% relative strength. Fundamentals: Average. On a 6-week streak.
Strong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
📊Debt increased 105% YoY — leverage rising
🏛️DII accumulation — stake up 2.3%
💰Trading 16% above estimated fair value
Earnings Acceleration Triggers
1. Operating leverage from scaling operations
OngoingHIGH
2. Working capital financing solution
Q3 FY26 implementedMEDIUM
3. Capacity expansion execution
Next 2-4 quartersMEDIUM
Key Risks
1. Interest cost pressure
MEDIUM2. Capacity constraints
HIGHKey Numbers
PAT Growth YoY
+104%
Stable
Revenue YoY
+72%
Stable
Operating Margin
10.2%
+202 bps YoY
PE Ratio
41.2
Current Price
₹822
Fundamental Score
43/100
Average
3Y PAT CAGR
+64%
Market Cap
851 Cr
Valuation
Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Macfos Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Feb 22, 2026
Working capital financing solution
Expected: Q3 FY26 implementedMEDIUM confidence
What: NBFC partnership improving receivables realization
“Management stated they launched a scheme with an NBFC to realize financial disbursement immediately”
Capacity expansion execution
Expected: Next 2-4 quartersMEDIUM confidence
What: New plant capacity targeting 25% EBITDA margin
“Management stated they are trying to achieve 25% EBITDA with new plant capacity”
What Are the Key Risks for Macfos Ltd?
Earnings deceleration risks from management commentary
Interest cost pressure
MEDIUMTrigger: Continued scaling operations
Impact: -38 bps margin impact
Management view: Erosion of 38 basis points in PAT margin attributed to higher interest costs increasing to ₹0.92 crores from ₹0.74 crores QoQ
Monitor: Interest expenses
Capacity constraints
HIGHTrigger: Order book growth outpacing capacity
Management view: Order book is double or triple but have problem with executions
Monitor: Capacity utilization
What Is Macfos Ltd's Management Saying?
Key quotes from recent conference calls
“Right now if we focus more aggressively then our operating cost will increase. And our order book, you can see it's like a double or triple. But we have a problem for the executions. So that's why we are increasing the capacity gradually — Rupesh Mehta”
“No margin will increase gradually. It is not for night journey. But with the new plant I had given the clear projection that we are trying to achieve the 25% EBITDA with the new plant capacity and new investment in new backward integrations. So we are expecting maximum 25% — Rupesh Mehta”
“Our order book, you can see it's like a double or triple — Rupesh Mehta”
“I promise you that we'll keep this journey for the 27, 28, 29 coming five years will give you the significant growth. And with our robust order book you can see the quarter four also we will achieve the good numbers more than this every quarter on quarter we'll try to achieve the more and more growth — Rupesh Mehta”
What Is Macfos Ltd's Management Guidance?
Forward-looking targets from management for Next 2-4 quarters
OPM Guidance
25%
Management Tone: CAUTIOUS
Key Milestones
• 25% EBITDA margin target
• Capacity expansion
How Fast Is Macfos Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +72% | +80% | Stable |
| PAT (Net Profit) | +104% | +64% | Stable |
| OPM | 10.2% | +202 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Frequently Asked Questions: Macfos Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Macfos Ltd's latest quarterly results?
Macfos Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +103.6% (stable)
- Revenue Growth YoY: +72.2%
- Operating Margin: 10.2% (expanding)
Is Macfos Ltd's profit growing or declining?
Macfos Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +103.6% (latest quarter)
- PAT Growth QoQ: +10.0% (sequential)
- 3-Year PAT CAGR: +63.6%
- Trend: Stable — consistent growth pattern
What is Macfos Ltd's revenue growth trend?
Macfos Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +72.2%
- Revenue Growth QoQ: +15.2% (sequential)
- 3-Year Revenue CAGR: +80.0%
How is Macfos Ltd's operating margin trending?
Macfos Ltd's operating margin is expanding.
- Current OPM: 10.2%
- OPM Change YoY: +2.0% basis points
- OPM Change QoQ: -0.3% basis points
What is Macfos Ltd's 3-year profit and revenue CAGR?
Macfos Ltd's long-term compounding rates
- 3-Year Profit CAGR: +63.6%
- 3-Year Revenue CAGR: +80.0%
Is Macfos Ltd's growth accelerating or decelerating?
Macfos Ltd's earnings growth is stable with positive momentum on a sequential basis.
- YoY Acceleration: +118.6% bps
- Sequential Acceleration: +8.6% bps
What is Macfos Ltd's trailing twelve month (TTM) performance?
Macfos Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹21 Cr
- TTM PAT Growth: +17.6% YoY
- TTM Revenue: ₹269 Cr
- TTM Revenue Growth: +15.3% YoY
- TTM Operating Margin: 10.7%
Is Macfos Ltd overvalued or undervalued?
Macfos Ltd appears overvalued based on our fair value analysis.
- Valuation Signal: Overvalued
- Current PE: 41.2x
- Price-to-Book: 10.6x
What is Macfos Ltd's current PE ratio?
Macfos Ltd's current PE ratio is 41.2x.
- Current PE: 41.2x
- Market Cap: 851 Cr
How does Macfos Ltd's valuation compare to its history?
Macfos Ltd's current PE is 41.2x.
- Current PE: 41.2x
- Valuation Assessment: Overvalued
What is Macfos Ltd's price-to-book ratio?
Macfos Ltd's price-to-book ratio is 10.6x.
- Price-to-Book (P/B): 10.6x
- Book Value per Share: ₹77
- Current Price: ₹822
Is Macfos Ltd a fundamentally strong company?
Macfos Ltd is rated Average with a fundamental score of 43/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +72.2% (10% weight)
- PAT Growth YoY: +103.6% (10% weight)
- PAT Growth QoQ: +10.0% (10% weight)
- Margins expanding (10% weight)
Is Macfos Ltd debt free?
Macfos Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹20 Cr
What is Macfos Ltd's return on equity (ROE) and ROCE?
Macfos Ltd's return ratios over recent years
- FY2025: ROCE 42.0%
Is Macfos Ltd's cash flow positive?
Macfos Ltd's operating cash flow is negative (FY2025).
- Cash from Operations (CFO): ₹-25 Cr
- Free Cash Flow (FCF): ₹-35 Cr
- CFO/PAT Ratio: -139% (weak cash conversion)
What is Macfos Ltd's dividend yield?
Macfos Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹822
Who holds Macfos Ltd shares — promoters, FII, DII?
Macfos Ltd's shareholding pattern (Mar 2026)
- Promoters: 69.1%
- FII (Foreign): 0.2%
- DII (Domestic): 6.4%
- Public: 24.3%
Is promoter holding increasing or decreasing in Macfos Ltd?
Macfos Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 69.1% (Mar 2026)
- Previous Quarter: 69.1% (Dec 2025)
- Change: 0.00% (stable)
How long has Macfos Ltd been outperforming Nifty 500?
Macfos Ltd has been outperforming Nifty 500 for 6 consecutive weeks, indicating building momentum.
Is Macfos Ltd a new momentum entry or an established outperformer?
Macfos Ltd is an established outperformer with 6 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Macfos Ltd?
Macfos Ltd has 3 key growth catalysts identified from recent earnings analysis
- Operating leverage from scaling operations
- Working capital financing solution
- Capacity expansion execution
What are the key risks in Macfos Ltd?
Macfos Ltd has 2 key risks worth monitoring
- Interest cost pressure
- Capacity constraints
What did Macfos Ltd's management say in the latest earnings call?
In Q3 FY26, Macfos Ltd's management highlighted
- "Right now if we focus more aggressively then our operating cost will increase. And our order book, you can see it's like a double or triple. But we ha..."
- "No margin will increase gradually. It is not for night journey. But with the new plant I had given the clear projection that we are trying to achieve ..."
- "Our order book, you can see it's like a double or triple — Rupesh Mehta"
What is Macfos Ltd's management guidance for growth?
Macfos Ltd's management has provided the following forward guidance for Next 2-4 quarters
- OPM guidance: 25%
- Management tone: cautious
- Milestone: 25% EBITDA margin target
- Milestone: Capacity expansion
Is Macfos Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Macfos Ltd may be worth studying
- Earnings growing at +103.6% YoY
- Operating margins are expanding — OPM at 10.2%
What is the investment thesis for Macfos Ltd?
Macfos Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +72.2% YoY
- Margins expanding
- Growth catalyst: Operating leverage from scaling operations
Risk Factors (Bear Case)
- Appears overvalued
- Key risk: Interest cost pressure
What is the future outlook for Macfos Ltd?
Macfos Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: expanding
- Valuation: Overvalued
- Key Catalyst: Operating leverage from scaling operations
- Key Risk: Interest cost pressure
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.