Salasar Techno Engineering Limited Stock Analysis

Name: Salasar Techno Engineering Limited (SALASAR) Stock Analysis
Brand: NSE India
Rating: 4.5 (1 reviews)

SALASAR NSE India

Salasar Techno Engineering Limited (SALASAR) is a India-based company listed on NSE. This AI-powered analysis provides investment insights based on quarterly earnings reports and financial performance metrics.

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Salasar Techno Engineering's Q3 FY2026 results reveal significant operational stress with consolidated revenue declining 23% QoQ from ₹427.17 Cr to ₹330.78 Cr, and profit plummeting 59% QoQ from ₹15.99 Cr to ₹6.51 Cr. While 9-month consolidated revenue grew 11% YoY to ₹1,058 Cr, the sharp sequential decline is concerning. The EPC segment shows weakness with revenue falling 30% QoQ despite steel structures remaining stable. Operational efficiency deteriorated with EBITDA margins compressing significantly, though the company maintained positive cash generation and completed a warrant conversion that strengthened equity by ₹11.70 Cr through forfeitures.

Based on: Salasar Techno Engineering Limited - Financial Results (14/2/2026) (Feb 14, 2026)

+ Key Strengths

Nine-month consolidated revenue grew 11.3% YoY from ₹950.67 Cr to ₹1,058.12 Cr, demonstrating resilient annual momentum despite quarterly volatility

Steel Structures segment maintained strong performance with 9-month revenue at ₹646.05 Cr (up 14.1% YoY) and segment profit of ₹70.83 Cr showing margin expansion

Working capital improved significantly with inventory build of ₹78.41 Cr in 9 months (vs ₹11.65 Cr prior year) indicating strong order execution pipeline

Warrant conversion completed with promoters exercising all warrants and ₹11.70 Cr forfeited from non-promoters, strengthening equity base from ₹172.68 Cr to ₹174.80 Cr

Consolidated segment assets grew 34% YoY from ₹1,229.26 Cr to ₹1,676.76 Cr, reflecting aggressive capacity expansion and order book growth

- Key Risks

Severe sequential decline in Q3 consolidated revenue (down 23% QoQ from ₹427.17 Cr to ₹330.78 Cr) and net profit (down 59% QoQ from ₹15.99 Cr to ₹6.51 Cr) signals project execution slowdown

EPC segment revenue collapsed 30% QoQ from ₹168.51 Cr to ₹120.51 Cr with segment profit declining 49% QoQ, indicating competitive pressures or project delays

Finance costs remain elevated at ₹41.30 Cr for 9 months (up 12% YoY) with total segment liabilities surging 93% YoY from ₹399.18 Cr to ₹769.03 Cr, raising leverage concerns

Standalone EPS declined to ₹0.03 in Q3 from ₹0.10 in Q2, representing 70% erosion in shareholder returns despite equity base expansion

Other comprehensive income turned negative at -₹33.73 Lakhs in Q3 after positive ₹118.63 Lakhs in Q2, suggesting mark-to-market losses or actuarial setbacks

Labour Code 2020 implementation added ₹2.89 Lakhs in incremental costs, with ongoing regulatory uncertainty potentially escalating future employee benefit obligations

Forward Outlook

The company completed a significant warrant exercise with promoters converting all warrants while forfeiting ₹11.70 Cr from non-promoters, but no new strategic initiatives or expansion plans were disclosed in this report. The sharp 23% QoQ revenue decline and 30% drop in EPC segment revenue suggest execution challenges that may persist into Q4 FY2026. With segment assets growing 34% YoY to ₹1,676.76 Cr and liabilities surging 93% YoY, the company appears to be in an investment-heavy phase without visible near-term catalysts. The report lacks forward guidance on new projects, order book additions, or expansion timelines, creating uncertainty about revenue trajectory recovery in the next 2-4 quarters.

All Scores

Date	Report	Score	Sentiment	AI
Feb 14, 2026	Salasar Techno Engineering Limited - Financial Results (14/2/2026)	4.5	Sell	Claude
Salasar Techno Engineering's Q3 FY2026 results reveal significant operational stress with consolidated revenue declining 23% QoQ from ₹427.17 Cr to ₹330.78 Cr, and profit plummeting 59% QoQ from ₹15.99 Cr to ₹6.51 Cr. While 9-month consolidated revenue grew 11% YoY to ₹1,058 Cr, the sharp sequential decline is concerning. The EPC segment shows weakness with revenue falling 30% QoQ despite steel structures remaining stable. Operational efficiency deteriorated with EBITDA margins compressing significantly, though the company maintained positive cash generation and completed a warrant conversion that strengthened equity by ₹11.70 Cr through forfeitures. STRENGTHS: Nine-month consolidated revenue grew 11.3% YoY from ₹950.67 Cr to ₹1,058.12 Cr, demonstrating resilient annual momentum despite quarterly volatility / Steel Structures segment maintained strong performance with 9-month revenue at ₹646.05 Cr (up 14.1% YoY) and segment profit of ₹70.83 Cr showing margin expansion / Working capital improved significantly with inventory build of ₹78.41 Cr in 9 months (vs ₹11.65 Cr prior year) indicating strong order execution pipeline / Warrant conversion completed with promoters exercising all warrants and ₹11.70 Cr forfeited from non-promoters, strengthening equity base from ₹172.68 Cr to ₹174.80 Cr / Consolidated segment assets grew 34% YoY from ₹1,229.26 Cr to ₹1,676.76 Cr, reflecting aggressive capacity expansion and order book growth RISKS: Severe sequential decline in Q3 consolidated revenue (down 23% QoQ from ₹427.17 Cr to ₹330.78 Cr) and net profit (down 59% QoQ from ₹15.99 Cr to ₹6.51 Cr) signals project execution slowdown / EPC segment revenue collapsed 30% QoQ from ₹168.51 Cr to ₹120.51 Cr with segment profit declining 49% QoQ, indicating competitive pressures or project delays / Finance costs remain elevated at ₹41.30 Cr for 9 months (up 12% YoY) with total segment liabilities surging 93% YoY from ₹399.18 Cr to ₹769.03 Cr, raising leverage concerns / Standalone EPS declined to ₹0.03 in Q3 from ₹0.10 in Q2, representing 70% erosion in shareholder returns despite equity base expansion / Other comprehensive income turned negative at -₹33.73 Lakhs in Q3 after positive ₹118.63 Lakhs in Q2, suggesting mark-to-market losses or actuarial setbacks / Labour Code 2020 implementation added ₹2.89 Lakhs in incremental costs, with ongoing regulatory uncertainty potentially escalating future employee benefit obligations

What is the AI Stock Score?

The AI Stock Score is a composite rating from 0-10 generated by analyzing quarterly earnings reports using three leading AI models (Google Gemini, Anthropic Claude, and OpenAI ChatGPT). Each AI independently evaluates financial performance, growth prospects, risks, and market positioning to provide an objective investment perspective.

How should I interpret Buy/Hold/Sell ratings?

Buy (7.0-10.0): Strong fundamentals and positive outlook. Hold (4.0-6.9): Mixed signals, suitable for existing positions. Sell (0-3.9): Deteriorating fundamentals or significant risks. These are AI-generated opinions for informational purposes only, not investment advice.

How is the composite score calculated?

The composite score is the mathematical average of the latest scores from each AI provider. For example, if Gemini rates 7.5, Claude rates 4.5, and ChatGPT rates 6.0, the composite score would be (7.5+4.5+6.0)/3 = 6.0. This multi-AI approach reduces bias from any single model.

How often are scores updated?

Scores are automatically generated within hours of quarterly earnings results being published on NSE. The system monitors earnings announcements 4 times daily and processes new reports immediately. Check the "Last Updated" date at the top of this page for the most recent analysis timestamp.

Is this financial advice?

No. This is AI-generated analysis for informational and educational purposes only. MarketsHost is not a SEBI-registered Research Analyst or Investment Adviser. AI models can produce inaccurate results. Always consult a qualified financial advisor and conduct your own due diligence before making investment decisions.