1:5 Stock Split Alert! This small-cap stock jumps after board approval; profit rises 19%, shares in focus

1:5 Stock Split: Shares of P S Raj Steels Ltd rose nearly 4 per cent on Tuesday after the company announced a 1:5 stock split and posted a strong set of numbers for FY26, with both revenue and profit registering double-digit growth.

The stock settled at Rs 407, up 3.83 per cent from the previous close, as investors welcomed the proposed share split aimed at improving liquidity and attracting wider retail participation.

Board clears 1:5 stock split

In a meeting held on June 1, the company's Board of Directors approved a proposal to split one equity share of face value Rs 10 into five equity shares of face value Rs 2 each. The proposal is subject to shareholders' approval.

The company said the stock split is intended to make the shares more affordable for retail investors and improve trading liquidity in the counter.

Following the split, the paid-up share capital will remain unchanged at Rs 7.54 crore. However, the number of outstanding equity shares will increase from 75.38 lakh to 3.77 crore.

Revenue and profit grow in FY26

P S Raj Steels reported revenue from operations of Rs 265.99 crore in FY26, compared with Rs 236.89 crore in the previous financial year, translating into growth of 12.3 per cent.

Total income for the year stood at Rs 266.48 crore, up from Rs 236.95 crore in FY25.

The company also reported an improvement in profitability. Profit before tax rose to Rs 11.29 crore from Rs 9.96 crore a year earlier, while profit after tax increased to Rs 8.81 crore from Rs 7.40 crore.

Net profit growth of 19.1 per cent outpaced revenue growth, reflecting better operational performance during the year.

Earnings per share stood at Rs 11.38 in FY26 against Rs 9.83 in FY25.

H2 numbers remain strong

For the six months ended March 31, 2026, revenue from operations came in at Rs 137.15 crore, compared with Rs 126.65 crore in the corresponding period last year.

Total income increased to Rs 138.81 crore from Rs 126.91 crore.

Profit before tax rose to Rs 5.95 crore from Rs 4.79 crore, while profit after tax climbed to Rs 4.36 crore from Rs 3.54 crore in the year-ago period.

The steady rise in earnings indicates that the company maintained growth momentum through the second half of the financial year.

Other board decisions

The board also approved the reappointment of M/s Anil Yash & Associates as Internal Auditor for FY27 and appointed M/s E B & Associates as Cost Auditor for FY27.