Cupid Ltd. Announces 4:1 Bonus Issue, Q3 Profit Jumps 196%

Introduction

Cupid Ltd. announced strong financial results for the third quarter of fiscal year 2026, coupled with a significant corporate action for its shareholders. The company's board has recommended a bonus issue of equity shares in the ratio of 4:1. This decision was made public alongside quarterly earnings that showed a consolidated net profit jump of 196% year-on-year, underscoring a period of robust operational performance and strategic capital management.

Stellar Financial Performance in Q3

The quarter ending December 31, 2025, has been recorded as the strongest in Cupid's history. The company reported a consolidated net profit of Rs 33 crore, a substantial increase from the corresponding period in the previous fiscal year. On a sequential basis, the profit grew by 36%. This growth was driven by a significant rise in total income, which stood at Rs 104 crore for the quarter, marking a 106% surge year-on-year. The performance highlights consistent demand and effective execution across its business segments.

EBITDA and Margin Expansion

The company's operational efficiency saw marked improvement. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) soared by 201% year-on-year and registered a 21% increase from the preceding quarter. The EBITDA margin for Q3 FY26 was 37%, an expansion of 1212 basis points compared to the same quarter last year and 304 basis points sequentially. This improvement reflects strong control over costs and enhanced profitability from its core operations, which include export-led B2B activities, a growing domestic FMCG business, and increasing traction in diagnostics.

The 4:1 Bonus Issue Explained

The board has recommended a bonus issue of four new equity shares for every one existing equity share held by investors on the record date. This move is designed to increase the number of outstanding shares, thereby reducing the per-share price. According to the company, this will improve the stock's affordability and make it more accessible to a broader base of retail investors. The decision is subject to shareholder and other necessary regulatory approvals.

Strategic Rationale and Management Commentary

In a regulatory filing, Cupid Ltd. stated that the bonus issue follows a detailed evaluation of its capital structure and growth prospects. The company aims to enhance liquidity and encourage wider retail participation. Aditya Kumar Halwasiya, Chairman & Managing Director, commented on the development, stating, "A 4:1 bonus issue supports broader retail participation by improving affordability, while also enhancing flexibility for our existing shareholders. Most importantly, it reflects our confidence in Cupid’s growth journey and our commitment to laying a strong foundation for the next phase of scale.”

Capital Structure Adjustments

To facilitate the bonus issue, the board has also approved an increase in the company's authorized share capital. The capital will be raised from Rs 50 crore to Rs 150 crore. This is a procedural requirement to accommodate the new shares that will be created as part of the bonus issue. These proposals will be presented to shareholders for approval at an upcoming Extraordinary General Meeting (EGM).

Implementation and Timeline

Following the necessary approvals from shareholders and regulators, the bonus shares are expected to be credited to the demat accounts of eligible shareholders within two months from the date of the board's approval. The company has set a target to complete the process by March 29, 2026. The record date for determining shareholder eligibility for the bonus issue will be announced in due course.

Conclusion

Cupid Ltd.'s Q3 FY26 performance demonstrates significant financial strength and operational momentum. The combination of record-breaking profits and a shareholder-friendly 4:1 bonus issue signals management's confidence in the company's future. The move is poised to enhance shareholder value and increase the stock's liquidity in the market. Investors will now await the announcements regarding the EGM and the record date for the bonus issue.