Penny Stock Hits 20% Upper Circuit After Its Revenue Grew by 9,872% in Q4

Synopsis: Shares of this company hit a 20 percent upper circuit after revenue surged over 9,872 percent YoY in Q4 FY26, with profitability turning positive and earnings showing a sharp recovery from losses.

The shares of this company, which is an investment and holding company that shifted its focus from real estate to diversified service sectors, gained investor traction after the company posted strong Q4 numbers.

With a market capitalization of Rs 68 crore, Satchmo Holdings Ltd’s share on Wednesday made a day high of Rs 4.65 per share, up by 20 percent from its previous day’s close of Rs 3.88 per share. The share of this company gave a return of 192 percent over the last five years, and it has a notable investor, LIC, which holds about a 4.26 percent stake in the company.

Results Highlight

QoQ View: Revenue from operations increased sharply to Rs 17.95 crore in Q4 FY26 from Rs 3.21 crore in Q3 FY26, marking a growth of around 459 percent. However, profitability declined significantly, with profit after tax falling to Rs 11.39 crore in Q4 FY26 from Rs 1,128.32 crore in Q3 FY26, a drop of about 99 percent. The sharp drop in profit is mainly due to the absence of one-time gains worth Rs 1,157.21 crore seen in Q3, which included reversals of impairment, write-backs of liabilities, and settlement-related adjustments.

Similarly, EPS decreased to Rs 0.78 per share in Q4 FY26 from Rs 77.37 per share in Q3 FY26, also down nearly 99 percent, indicating weaker earnings despite strong revenue growth. 

YoY view: On a YoY basis, revenue from operations increased sharply to Rs 17.95 crore in Q4 FY26 from Rs 0.18 crore in Q4 FY25, marking a strong growth of over 9,872 percent. The company reported a turnaround in profitability, with profit after tax at Rs 11.39 crore in Q4 FY26 compared to a loss of Rs 8.38 crore in Q4 FY25. 

Similarly, EPS improved to Rs 0.78 per share in Q4 FY26 from negative Rs 0.57 per share in Q4 FY25, reflecting a clear recovery in earnings performance. 

Fiscal Year comparison: Revenue from operations increased to Rs 30.21 crore in FY26 from Rs 11.82 crore in FY25, registering a growth of around 156 percent. Profit after tax rose sharply to Rs 1,188.74 crore in FY26 compared to Rs 18.38 crore in FY25, marking a significant increase of about 6,366 percent. 

Similarly, EPS jumped to Rs 81.52 per share in FY26 from Rs 1.26 per share in FY25, reflecting a strong rise of around 6,372 percent, indicating a substantial improvement in overall earnings performance.

Segment Performance: In Q4 FY26, total consolidated revenue stood at Rs 17.95 crore. The “Others” segment contributed the majority with Rs 17.43 crore, while investment and equity trading added Rs 0.44 crore, and service-related businesses contributed Rs 0.08 crore, indicating a highly concentrated revenue mix.

About the Company 

Satchmo Holdings Ltd (formerly Nitesh Estates Ltd), based in Bangalore, India, is an investment and holding company that shifted its focus from real estate to diversified service sectors. It operates in facilities management, catering, restaurant services (including cloud kitchens), and equity trading. The firm is transitioning to a near-zero-debt model.

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