Multibagger Cupid Ltd delivered exceptional fourth quarter results with net profit surging to ₹36.3 crore compared with ₹11.5 crore in the same quarter last year, reflecting a near-tripling in earnings. According to reports from NDTV Profit, revenue also more than doubled to ₹120 crore from ₹56.5 crore year-on-year, indicating strong operational momentum and demand expansion during the period. The company also improved efficiency, with EBITDA rising sharply to ₹37.6 crore from ₹13.5 crore in the previous year, and EBITDA margin expanding to 31.3% from 23.9%, showcasing effective cost management and efficient scaling. The company has reported sequential growth in profit after tax (PAT) and revenue from operations for the past six quarters, demonstrating consistent operational performance.
In its quarterly update on March 31, Cupid Ltd provided strong forward guidance, stating the company will comfortably surpass its FY26 annual guidance of ₹335 crore in revenue and ₹100 crore in net profit. The company further guided for strong visibility ahead, with expectations of achieving revenue of ₹600 crore in FY27 and net profit margin in excess of 30%. According to NDTV Profit, the company's Q3 FY26 earnings were robust with net profit of ₹33 crore, surging 200% year-on-year from ₹11 crore in the year-ago period, while sales soared 103% in the reported quarter at ₹104 crore versus ₹51 crore in the corresponding quarter of the previous financial year. The company has transformed from a pure condom exporter into a three-engine play with 90% revenue from high-margin B2B export business backed by WHO/UNFPA prequalification and entries into 125 countries, a fast-scaling domestic FMCG portfolio, and an emerging IVD diagnostics vertical targeting 4x capacity by end2026.
Despite the strong quarterly results, Cupid Ltd's stock faced immediate pressure, falling 2.21% to ₹120.36 on Friday following the announcement. As reported by NDTV Profit, the stock's performance reflects stock-specific weakness and likely profit booking after its sharp run-up, despite the strong quarterly results. The company's P/E ratio of around 195x is a significant premium compared to industry peers like Hindustan Unilever (50.28x) and Godrej Consumer Products (56.71x), suggesting the stock price already factors in substantial future growth that may be hard to achieve. According to Bonanza Research, Cupid is now the most expensive stock in the FMCG category with a trailing-twelve-month P/E of 197, having seen a remarkable 620% rally in the past year. Analysts had expected more measured growth with revenue growth of about 17% and a 15% profit increase for Q4 FY26, with actual results exceeding these expectations. The stock's 4,500% surge over the last three years demonstrates its remarkable long-term performance, though current valuations leave little margin for slippage in an uncertain global environment.
From a technical perspective, Cupid is currently trading above its 50-day and 200-day simple moving averages of ₹98 and ₹70 respectively, according to Trendlyne data. The stock has demonstrated enviable stability with a one-year beta of 0.7 in a volatile market, which has been affected by foreign outflows, falling rupee, valuation concerns, tariffs and war. Centrum Finverse notes that Cupid is in a secular uptrend and still looks strong for a target of ₹135+ levels on a positional basis, with support at ₹110. However, experts advise caution for fresh investors due to the high valuation, suggesting partial profit-booking for existing shareholders and recommending that fresh buyers wait for a healthy correction. The stock's 4,500% surge over the last three years demonstrates its remarkable long-term performance, though current valuations leave little margin for slippage in an uncertain global environment.
