SC Agrotech proposes 10:1 stock split and 4:5 bonus issue; Q2 net profit up about 48 times

The board of directors of SC Agrotech Limited met on November 13, 2026, and put forward proposals on a stock split and bonus shares. Investors are watching the company because its net profit for the quarter ended September 2026 rose about 48 times. Shareholder approval of the proposals and the company sustaining its financial performance will both matter.

Under the proposal, each share of the company will be split into 10 shares. A bonus issue in the ratio of 4:5 is then proposed, meaning eligible shareholders will get 4 bonus shares for every 5 shares held. The decision will be implemented after shareholder approval and the completion of the required regulatory process.

Take an investor holding 400 shares of the company. After the split, the holding becomes 4,000 shares. With 3,200 bonus shares under the 4:5 ratio, the total becomes 7,200 shares. However, a rise in the number of shares does not mean the value of the investment rises in the same proportion. A stock split and bonus issue lead to an adjustment in the market price of the share.

The company's results have also drawn attention. In the second quarter ended September 2026, its revenue from operations was about Rs 45.26 crore, against Rs 5.02 crore in the same quarter last year, a rise of about 802 per cent.

Net profit rose from about Rs 21 lakh a year earlier to Rs 10.21 crore, a rise of about 48 times.

In the first six months of 2026-27, the company recorded total revenue of Rs 83.11 crore and a profit after tax of Rs 19.77 crore. In contrast, its net profit for the whole of 2025-26 was about Rs 3.34 crore.

On November 4, 2026, the company launched a digital agriculture platform called AgriBridge. The plan is to bring farmers, suppliers of agricultural products and institutional buyers onto a single digital platform.

The company has also set out a possible business projection. If it achieves gross merchandise value (GMV) of Rs 1,000 crore a year and earns revenue at a rate of 5.2 per cent, it could earn about Rs 52 crore. This is, however, an estimate, and there is no guarantee that such business or revenue will materialise.

The company has also proposed increasing its authorised share capital by Rs 61 crore. A special general meeting has been called on December 11, 2026, to decide on these proposals. The company declared no dividend at the November 13 meeting.

Investors should not decide on the basis of these announcements alone. Approval of the proposals, the record date, financial performance in coming quarters and the actual revenue from AgriBridge will matter. Bonus shares or a stock split do not by themselves increase wealth. Investment decisions should be made after weighing the company's financial condition, the valuation of the share and market risk.