Cupid Q3 Results: Profit Triples, Board Approves 4:1 Bonus Share

Introduction

Cupid Limited has announced a record-breaking performance for the third quarter of the fiscal year 2026, highlighted by a nearly threefold increase in net profit. In a significant move for shareholders, the company's board has also recommended a bonus issue of equity shares in a 4:1 ratio. The announcement, made on January 29, 2026, pairs robust financial growth with a strategic initiative aimed at enhancing shareholder value and increasing stock liquidity. The company's total income surged by 106% year-on-year, underscoring a period of strong operational execution and sustained demand across its key business segments.

Stellar Quarterly Performance

The quarter ending December 31, 2025, has been officially noted as the strongest in Cupid's history. The company reported a consolidated net profit of Rs 33 crore, marking a staggering 196% jump compared to the same period last year. On a sequential basis, the profit grew by a healthy 36%. This bottom-line growth was fueled by a significant rise in total income, which stood at Rs 104 crore for the quarter. The operational efficiency was equally impressive, with Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) soaring by 201% year-on-year. The EBITDA margin expanded significantly to 37%, an improvement of 1212 basis points from the previous year, reflecting strong cost controls and enhanced profitability.

The 4:1 Bonus Issue Explained

Alongside its strong earnings report, Cupid's board recommended a bonus issue of four new equity shares for every one existing equity share held by investors. This corporate action, if approved, will significantly increase the number of shares in circulation. The primary objective is to reduce the per-share price, making the stock more affordable and accessible to a wider base of retail investors. This move is expected to improve the stock's liquidity in the market. The company has previously issued bonus shares in 2018 (1:5) and 2024 (1:1), making this the third such issue in its history. The final issuance is subject to shareholder and other necessary regulatory approvals.

Strategic Capital Restructuring

To facilitate the bonus issue, the board has also approved a proposal to increase the company's authorized share capital from Rs 50 crore to Rs 150 crore. This is a necessary procedural step to accommodate the new shares that will be created. More importantly, expanding the authorized capital provides the company with greater flexibility for future growth, including potential fundraising or other strategic initiatives. This decision signals management's long-term confidence and preparedness for the next phase of expansion.

Management's Confident Outlook

Aditya Kumar Halwasiya, Chairman & Managing Director of Cupid Ltd., expressed strong confidence in the company's trajectory. He stated, "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.” The management emphasized that the record quarterly performance was a result of disciplined execution and strong momentum across all business segments.

Drivers of Growth

The company's exceptional performance is not tied to a single factor but reflects broad-based strength. Key growth drivers include its well-established, export-led B2B operations, which benefit from long-term international contracts and repeat institutional orders. Furthermore, the domestic FMCG business is scaling rapidly, supported by a growing distribution network and new product additions. The diagnostics segment is also emerging as a high-potential area, with increasing traction for its in-vitro diagnostic (IVD) kits.

Timeline and Next Steps

The proposals for the bonus issue and the increase in authorized share capital will be presented to shareholders for approval at an upcoming Extraordinary General Meeting (EGM). While the record date for determining shareholder eligibility for the bonus issue will be announced later, the company aims to complete the process swiftly. 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, with a target completion date of March 29, 2026.

Conclusion

Cupid Ltd.'s Q3 FY26 results and the accompanying 4:1 bonus issue announcement send a strong positive signal to the market. The combination of record-breaking profits, significant margin expansion, and a shareholder-friendly corporate action underscores management's confidence in sustained growth. Investors will now await the announcement of the EGM and the record date, which will be the next key milestones in this value-creation exercise.