Synopsis:
Veljan Denison Limited, an Auto Ancillary stock, reports 16% YoY revenue growth and a 44% YoY net profit surge in Q1 FY26 results
This micro-cap stock, engaged in designing, manufacturing, and supplying hydraulic pumps, motors, valves, and power systems, serving construction, industrial, and engineering sectors globally, jumped 19 percent after the company reported June quarterly results with a 44.29 percent YoY increase in net profit.
With a market capitalization of Rs. 600.75 crores, the share of Veljan Denison Limited has reached an intraday high of Rs. 1,385 per equity share, rising nearly 18.98 percent from its previous day’s close price of Rs. 1,164.05. Since then, the stock has retreated and is currently trading at Rs. 1,335 per equity share.
Q1 FY26 Result Walkthrough
Coming into the quarterly results of Veljan Denison Limited, the company’s consolidated revenue from operations increased by 15.50 percent YOY, from Rs. 36.90 crore in Q1 FY25 to Rs. 42.62 crore in Q1 FY26, and grew by 2.77 percent QoQ from Rs. 41.47 crore in Q4 FY25.
In Q1 FY26, Veljan Denison Limited’s consolidated net profit increased by 44.29 percent YOY, reaching Rs. 7.33 crore compared to Rs. 5.08 crore during the same period last year. As compared to Q4 FY25, the net profit has increased by 21.76 percent, from Rs. 6.02 crore. The basic earnings per share increased by 44.12 percent and stood at Rs. 16.30 as against Rs. 11.31 recorded in the same quarter in the previous year, 2025.
Financial Highlights: Veljan Denison Limited’s revenue has increased from Rs. 137 crore in FY24 to Rs. 156 crore in FY25, which is a growth of 13.87 percent. The net profit has also grown by 9.09 percent, from Rs. 22 crore in FY24 to Rs. 24 crore in FY25.
Veljan Denison Limited’s revenue and net profit have grown at a CAGR of 13.55 percent and 22.47 percent, respectively, over the last two years. In terms of return ratios, the company’s ROCE and ROE stand at 15.1 percent and 11 percent, respectively. Veljan Denison Limited has an earnings per share (EPS) of Rs. 57.7, and its debt-to-equity ratio is 0.04x.
Veljan Denison Limited was originally established in 1974 under the name Denison Hydraulics India Limited through a technical and financial collaboration with the Denison division of Abex Corporation, USA. In 2010, the company was formally renamed Veljan Denison Limited.
The company is part of the Veljan group, which has been a pioneer in fluid power technology in India. Veljan Denison Limited is an Indian company specializing in manufacturing hydraulic pumps, motors, valves, and custom-built power systems or manifold blocks.
Veljan Denison serves diverse sectors, such as off-highway construction, mining equipment, heavy industrial applications, and offshore shipping vessels. It operates manufacturing plants near Hyderabad, India, and maintains a global presence with sales teams in Asia, Europe, and North America.
The company manufactures and supplies hydraulic products, including pumps, motors, valves, and power packs, and offers pneumatic solutions such as air cylinders and FRLs. It also designs and delivers custom-built systems for marine, energy, mobile, and industrial applications, ensuring reliable and high-performance solutions across all sectors.
Written By – Nikhil Naik
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