1. At a Glance – Yeh Builder Hai Ya Balance Sheet Magician?
SAB Industries Ltd is trading around ₹117 with a market capitalisation of roughly ₹178 crore, which is hilarious when you realise that the market value of its investments alone is ₹245 crore, casually sitting on the balance sheet like a rich uncle pretending to be middle class. Over the last three months, the stock is down about 26%, six months down nearly 20%, and one-year return is a brutal -54%. The market clearly woke up and said, “Boss, kuch toh gadbad hai.”
The latest quarter (Q2 FY26, Sep 2025) delivered sales of ₹6.97 crore and a net loss of ₹23.19 crore, with an EPS of -₹15.25. Yes, you read that right. Negative EPS that could emotionally damage a calculator. ROCE stands at -3.19%, ROE at -5.43%, and operating margins are so negative that even pessimists are uncomfortable. Debt sits at ₹64.25 crore, which is not catastrophic but becomes awkward when operating profits refuse to show up.
Despite all this, the stock trades at a P/E of ~41.6 based on TTM profits that are heavily influenced by other income. Classic desi masala: poor core business, spicy other income, and confused investors. Curious already? Good. Let’s dig.
2. Introduction – 1978 Se Chal Raha Hai, Par Chal Kahan Raha Hai?
Founded in 1978, SAB Industries Ltd is not a startup experimenting with losses. This company has been around for nearly five decades. That’s long enough to build highways, townships, airports, and at least one legendary reputation. On paper, SAB is into civil infrastructure, construction engineering, housing, townships, aviation structures, healthcare facilities, hospitality projects, and basically every category that sounds expensive and tender-friendly.
The company is part of the Steel Strips Group, a diversified business house with interests ranging from hi-tech manufacturing to agrochemicals. This group pedigree gives SAB a respectable surname. Unfortunately, markets don’t give valuation just for surname; they want kaam-dhanda.
In recent years, SAB’s operating revenue has been inconsistent to the point of being existential. FY23 revenue was largely other income, including profit on sale of land, JV income, dividends, and interest. Construction revenue is like that distant relative who only comes for weddings.
So the big question is: is SAB Industries a construction company waiting for its big comeback project, or is it slowly evolving into an investment holding company that occasionally builds things when bored? Keep this question in mind. We’ll come back to it again and again, like a suspense thriller with too many flashbacks.
3. Business
Model – WTF Do They Even Do?
Officially, SAB Industries is a construction and real estate company. In reality, it’s a multi-tool Swiss knife that mostly uses the corkscrew.
The company undertakes:
- Civil infrastructure projects
- Hi-tech industrial structures
- Mass housing & township development
- Aviation, institutional, public utility buildings
- Healthcare, hospitality, and recreation structures
That’s an impressive brochure. Add to that registrations as Class-1 contractor with multiple state PWDs and central bodies. So yes, SAB is qualified, licensed, and theoretically capable.
But capability doesn’t always translate into billing. In FY23, the company generated almost no operating revenue, surviving mainly on profit from land sales and investment income. Construction contributed only a fraction.
They are developing SSL Highway Towers in Derabassi, with Phase-I nearing completion and Phase-II pending approvals with additional 2 lakh sq. ft. saleable area. There’s also a planned 1.5 MW biogas plant with ₹21 crore capex. Plans toh solid hain, execution ka kya scene hai?
Meanwhile, SAB owns land parcels in prime Punjab and Haryana locations, intended for monetisation. Translation: “Zameen hai, kab bechenge ya develop karenge, dekhte hain.”
So the business model today looks like:
- Hold land
- Hold investments
- Occasionally sell something
- Book other income
- Surprise shareholders every quarter
Does this sound like a traditional EPC player? Or more like a patient landlord with Excel sheets? Comment section mein batao.
4. Financials Overview – Numbers That Need Emotional Support
Result Type Lock
The latest announcement clearly states “Unaudited Financial Results for the Quarter and Half Year Ended 30.09.2025”, which includes Quarterly Results.
So EPS treatment is QUARTERLY RESULTS → Annualised EPS = Latest EPS × 4. Lock kar diya. Ab koi drama nahi.
Quarterly Comparison Table (₹ Crore except
