Penny stock under ₹10 hits 5% upper circuit after Q1FY27 results, bonus issue and stock split announcement

Penny issue under ₹10: Shares of A-1 Limited, a penny stock trading below ₹10, hit the 5% upper circuit at ₹5.71 apiece on the BSE on July 28 after the company reported strong earnings for the quarter ended June 2026 and highlighted its bonus share announcement.

The penny stock has been highly volatile over the past year. It touched a 52-week high of ₹70.41 in November 2025 and a 52-week low of ₹5 on July 5, 2026. While the stock has gained 9% over the past week, it has declined 22% in one month, 52% in three months, 85% in six months and 65% over the past one year.

Q1 performance

A-1 Limited reported a strong set of standalone results for the quarter ended June 30, 2026, with net profit surging 429% year-on-year to ₹3.16 crore from ₹59.78 lakh in the corresponding quarter last year. Revenue from operations jumped 170% to ₹175.01 crore from ₹64.69 crore, reflecting robust demand in its core acids and chemicals business.

The Ahmedabad-based company said the strong financial performance underscores its operational leverage as it continues to scale production and sales during the current financial year.

The Acids and Chemicals segment remained the company's key earnings driver, with segment results before interest and finance costs rising to ₹514.86 lakh from ₹126.05 lakh in Q1 FY25. Meanwhile, the Sports Equipments segment reported a modest profit of ₹13.08 lakh.

Total segment assets increased to ₹11,560.93 lakh from ₹6,432.70 lakh a year earlier, indicating higher working capital requirements or inventory build-up to support increased sales volumes.

Bonus issue and stock split

During the quarter ended December 31, 2025, the company's board approved a 3:1 bonus issue along with a stock split, reducing the face value of each equity share from ₹10 to ₹1. The record date for the stock split was January 8, 2026, and the company said these corporate actions have been reflected in its restated earnings per share figures. The paid-up equity share capital stood at ₹4,600 lakh.

"During the quarter ended December 31, 2025, the Board of Directors has approved issue of 3,45,00,000 equity shares of Rs. 10/- each as fully paid up bonus equity shares in the proportion of 3:1; i.e. 3 (Three) bonus equity share of Rs. 10/- each for every 1 (One) existing equity share of Rs. 10/- each fully paid up.

The authorised share capital of the Company has been increased from 2,00,00,000 equity shares of Rs. 10/- each to 4,60,00,000 equity shares of Rs. 10/- each. Also, the Board of directors has approved the split/sub-division of 1 (one) equity shares from face value of Rs. 10/- each to Rs. 1/- each fully paid-up with the record date of January 08, 2026. Earnings per share for the previous periods/year have been calculated/restated considering the above bonus issue and stock split," it said in an exchange filing.

A bonus issue is a corporate action in which a company issues additional shares to its existing shareholders free of cost in a fixed ratio. In a 3:1 bonus issue, shareholders receive three additional shares for every one share held on the record date. While the number of shares owned by investors increases, the overall value of their investment remains broadly unchanged immediately after the bonus issue because the share price adjusts to reflect the higher number of outstanding shares.

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