Stock Crash: People started selling shares as soon as they opened – lower circuit was applied after a huge fall

News Topical, Digital Desk : Shares of commercial vehicle company SML Isuzu (now SML Mahindra) were stuck in a 5% lower circuit on Monday. The company's September quarter (Q2FY26) results were weaker than expected, prompting investors to book profits. Profit fell 3.4% to ₹21.05 crore, while revenue remained nearly flat at ₹555.11 crore. Significantly, the company has now been officially renamed SML Mahindra, as Mahindra & Mahindra has acquired a 58.97% stake in it. SML Isuzu shares fell sharply on Monday, hitting a 5% lower circuit at ₹2,830.1 per share. By 11:31 am, the stock was down 4.6% at ₹2,842.3, while the Sensex was up 0.59%. The company's market cap stood at ₹4,113 crore.

Stock Performance and 52-Week Range
52-Week High: ₹4,744.9
52-Week Low: ₹1,030.9
1-Year Return: +71% (Outperformed Sensex's 3% gain)

September Quarter (Q2FY26) Results
Company's results were weaker than market expectations
Net Profit (PAT): ₹21.05 crore (previous year ₹21.8 crore)
i.e. a decline of 3.4% Revenue from Operations: ₹555.11 crore (previous year ₹549.71 crore)
a marginal increase of 1%
Total Income: ₹557.23 crore vs ₹551.26 crore (YoY)
Total Expenses: ₹528.95 crore vs ₹522.73 crore (YoY) Revenue remained almost stable, but costs increased The increase put pressure on margins. As a result, investors booked profits and the stock was sold heavily. 

Production and Sales Data (September 2025) Production: 1,049 units (863 units last year) Sales: 812 units (988 units last year) Exports: 138 units (67 units last year) It is clear that production increased, but the overall performance was affected due to decrease in domestic sales. Major change in the company – Now 'SML Mahindra' On August 1, 2025, Mahindra & Mahindra (M&M) acquired control of SML Isuzu by purchasing 58.96% stake in the company. With this, the role of Japan's Sumitomo Corporation (earlier promoter) ended. M&M subsequently increased its stake to 58.97% through an open offer. The company's name has been officially changed to "SML Mahindra Limited" effective October 8, 2025. The company has a 40-year history and is a leading manufacturer of light and medium commercial vehicles in India. The company also manufactures buses, ambulances, and customized vehicles. What's next? Analysts believe M&M's technological and distribution strengths could benefit the company in the long term, but weak quarterly results and demand pressure could keep the stock under pressure in the short term.

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