Tata Group Stocks: Shares of Tata Group companies surged rapidly, rising 12%, and the company returned to profit.:Shares of Tata Group companies saw a strong rally on Tuesday. Following the March quarter results, the stock jumped nearly 13%, marking its biggest single-day gain in 16 months. The company has recovered from losses and returned to profitability. Revenue has also increased, and the company has further strengthened investor confidence by announcing a dividend.

News Topical, Digital Desk : Shares of the Tata Group company created a stir in the market following its March quarter results. The company's shares rose nearly 13.3 percent on Tuesday to trade at ₹763.7. This surge is significant because it is said to be the stock's biggest single-day jump in the past 16 months. Prior to the results on Monday, the stock had closed weak, breaking a five-day rally. However, as soon as the company's quarterly results were released, investor sentiment changed, and the stock began to see strong buying.

The biggest relief is that NELCO has returned to profitability from losses. In the March quarter, the company reported a net profit of ₹1.1 crore.

The company had suffered a loss of ₹4.1 crore in the same quarter last year. This shows a clear improvement in its earnings. Not only profits, but the company's revenue has also seen a significant jump. The company's total revenue in the March quarter was ₹79.2 crore, compared to ₹67.5 crore in the same period last year. This represents an increase of approximately 17.3 percent year-on-year. This clearly indicates a recovery in the company's business. The company's board has also announced a final dividend of ₹1 per share for investors.

However, this is pending shareholder approval at the upcoming Annual General Meeting (AGM). The news of the dividend has also strengthened investor confidence. Regarding shareholding, Tata Power is the promoter of the company and held a 50 percent stake as of the March quarter. Schlumberger Ltd. holds a 3.8 percent stake. Interestingly, small retail investors also have a strong stake in the company. Approximately 6.9 lakh retail investors hold a total of 33.1%, meaning that the stock has a significant shareholding. Despite the recent rally, it is still down approximately 34% from its 52-week high of ₹1,161.

However, the stock has gained 41% in the past month. Furthermore, this rally has also recovered all losses incurred through 2026 and is now positive on a year-on-year basis. The market will now be watching whether the company can maintain this profit growth pace in the coming quarters. If so, the stock could continue to remain bullish.