In Week of Mar 28, 2026, Kapston Services Ltd (Services - Others) is outperforming Nifty 500 with +53.8% relative strength. Fundamentals: Weak. On a 12-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Feb 22, 2026
What: Continued improvement in PAT margin from 3.35% in Q3 FY26 driving bottom-line growth
“PAT margin expanded to 3.35% in Q3 FY26, up from 3.21% in the previous quarter and 2.34% in the year-ago period, representing a 101 basis points year-on-year improvement.”
What: 29.05% revenue CAGR driving disproportionate PAT growth
Impact: +₹25 Cr revenue
“Net profit for Q3 FY26 stood at ₹7.06 crores, marking a 15.17% QoQ improvement and an exceptional 79.64% YoY surge. This acceleration in bottom-line growth, outpacing revenue expansion, signals improving operational efficiency.”
Earnings deceleration risks from management commentary
Trigger: Interest expenses at ₹3.25 cr for Q3 FY26
Impact: -200 bps margin impact
Management view: Interest expenses remained elevated at ₹3.25 crores for Q3 FY26, marginally lower than Q2 FY26's ₹3.31 crores but significantly higher than the ₹3.06 crores in Q3 FY25, reflecting the company's increased debt burden.
Monitor: Debt-to-Equity ratio
Trigger: Current liabilities increased from ₹126.78 cr to ₹164.63 cr
Impact: -100 bps margin impact
Management view: Current liabilities ballooned from ₹126.78 crores to ₹164.63 crores over the same period, indicating increased working capital requirements as the business scales.
Monitor: Current ratio
Key quotes from recent conference calls
“The company recorded its highest-ever quarterly net sales of ₹210.65 crores, highest quarterly PAT of ₹7.06 crores, and highest quarterly PBDIT of ₹10.56 crores, demonstrating consistent operational execution and market share gains. — Management”
“The company's operating profit to net sales ratio reached 5.28% in Q3 FY26, the highest quarterly level recorded, indicating improving pricing power or better cost management. — Management”
“Fixed assets jumped dramatically from ₹4.57 crores to ₹40.83 crores, suggesting significant capital expenditure, possibly related to facility upgrades or equipment purchases necessary for contract execution. — Management”
Forward-looking targets from management for next 2-4 quarters
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +17% | +36% | Stable |
| PAT (Net Profit) | +64% | +80% | Decelerating |
| OPM | 5.3% | +89 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.
Based on publicly available financial data. This is educational research, not investment advice.
Kapston Services Ltd's latest quarterly results (Dec 2025) show
Kapston Services Ltd's profit is growing with an decelerating trend.
Kapston Services Ltd's revenue growth trend is stable.
Kapston Services Ltd's operating margin is expanding.
Kapston Services Ltd's long-term compounding rates
Kapston Services Ltd's earnings growth is decelerating with positive momentum on a sequential basis.
Kapston Services Ltd's trailing twelve month (TTM) performance
Kapston Services Ltd appears significantly overvalued based on our fair value analysis.
Kapston Services Ltd's current PE ratio is 32.0x.
Kapston Services Ltd's current PE is 32.0x.
Kapston Services Ltd's price-to-book ratio is 8.4x.
Kapston Services Ltd is rated Weak with a fundamental score of 32.15/100. This score is calculated from objective financial metrics
Kapston Services Ltd has a debt-to-equity ratio of N/A.
Kapston Services Ltd's return ratios over recent years
Kapston Services Ltd's operating cash flow is negative (FY2025).
Kapston Services Ltd currently does not pay a significant dividend (yield 0.00%).
Kapston Services Ltd's shareholding pattern (Mar 2026)
Kapston Services Ltd's promoter holding has remained stable recently.
Kapston Services Ltd has been outperforming Nifty 500 for 12 consecutive weeks, indicating strong sustained outperformance.
Kapston Services Ltd is an established outperformer with 12 weeks of consecutive Nifty 500 outperformance.
Kapston Services Ltd has 2 key growth catalysts identified from recent earnings analysis
Kapston Services Ltd has 2 key risks worth monitoring
In Q3 FY26, Kapston Services Ltd's management highlighted
Kapston Services Ltd's management has provided the following forward guidance for next 2-4 quarters
Based on quantitative research signals, here is why Kapston Services Ltd may be worth studying
Kapston Services Ltd investment thesis summary:
Kapston Services Ltd's forward outlook based on current data signals
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.
