La Opala RG Limited Stock Analysis

Nine-month profit increased 7.4% YoY to ₹7,614 lakhs despite revenue decline, demonstrating improved profitability and cost management efficiency / Strong inventory management with finished goods/WIP reduction of ₹1,002 lakhs for nine months, improving working capital efficiency / Robust other income of ₹825 lakhs in Q3 and ₹2,892 lakhs for nine months (₹3,595 lakhs last year), providing steady non-operating earnings support / Healthy cash generation capability with reduced current tax outflow at ₹1,963 lakhs for nine months versus ₹1,865 lakhs last year, indicating stable taxable income / Zero debt reliance on stock-in-trade purchases and minimal finance costs of ₹387 lakhs for nine months, reflecting conservative balance sheet management

Revenue declined 5.5% YoY for nine months to ₹24,067 lakhs from ₹25,476 lakhs, indicating weakening demand or pricing pressure in the opalware segment / Power and fuel costs surged 30% YoY in Q3 to ₹1,276 lakhs and 31% for nine months to ₹3,997 lakhs, severely pressuring operating margins in energy-intensive glassware manufacturing / Employee benefit expenses increased 10% YoY in Q3 to ₹1,483 lakhs, with additional one-time labour code impact of ₹179 lakhs, raising structural cost base / Significant other comprehensive loss of ₹1,135 lakhs in Q3 (₹1,424 lakhs from equity investment fair value losses), indicating volatility in investment portfolio and potential future impairments / Sequential revenue decline from ₹9,090 lakhs in Q2 to ₹8,450 lakhs in Q3 (down 7%), suggesting weakening demand momentum entering peak festive quarter / Single product dependency (glass & glassware) with no product diversification as per segment disclosure, creating concentration risk in cyclical consumer discretionary category

Profitability held up despite weak sales: Q3 PAT increased to Rs 2,400.18 lakh from Rs 2,316.97 lakh YoY (~3.6% growth). / 9M earnings trend is positive: PAT rose to Rs 7,613.63 lakh versus Rs 7,089.16 lakh in 9M FY25 (~7.4% growth), with EPS improving to Rs 6.86 from Rs 6.39. / Cost control/normalization was strong: Q3 total expenses dropped to Rs 5,972.03 lakh from Rs 7,197.07 lakh YoY (~17.0% lower), supporting margins. / Core operating profit before exceptional items improved YoY: Q3 PBT before exceptional items was Rs 3,302.84 lakh versus Rs 2,882.24 lakh (~14.6% higher). / Financing burden appears contained: finance cost declined to Rs 139.47 lakh in Q3 from Rs 158.59 lakh YoY and to Rs 387.13 lakh in 9M from Rs 404.54 lakh.

Topline contraction is clear: Q3 revenue from operations fell to Rs 8,450.30 lakh from Rs 9,120.59 lakh YoY (~7.4% decline), and 9M revenue fell ~5.5% YoY. / Sequential momentum is soft: Q3 revenue declined ~7.0% QoQ and Q3 PAT declined from Rs 2,677.97 lakh to Rs 2,400.18 lakh (~10.4% QoQ). / Input-cost pressure remains in key lines: Q3 cost of materials consumed rose to Rs 1,577.08 lakh from Rs 1,271.62 lakh YoY, and power & fuel rose to Rs 1,275.76 lakh from Rs 981.78 lakh. / Non-operating support is weaker: Q3 other income fell to Rs 824.57 lakh from Rs 949.72 lakh YoY, and 9M other income declined to Rs 2,892.08 lakh from Rs 3,595.25 lakh. / Regulatory uncertainty persists: the company booked Rs 179.19 lakh exceptional cost for Labour Code transition and explicitly stated further impact may arise as central/state rules are finalized. / Business concentration risk is high: the company reports only one operating segment (glass & glassware), limiting diversification.