Grill Splendour Services Limited

Sector n/a · NSE

₹72.00−₹0.15 (−0.21%)

DalalBaazaar Score

27 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

The 60-second version of Grill Splendour Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

How does it make money?

Turns over ₹10 Cr a year. Of every ₹100 of sales, about ₹-105 reaches shareholders as profit, with ₹-62 left at the operating level before interest, tax and depreciation.

EBITDA margin-62.1%

Net margin-105.2%

What is its competitive advantage?Little sign of one

Returns on capital of -54.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE-54.6%

ROE-55.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -33% while net margin moved -908% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-33%

Margin effect-908%

DalalBaazaar Score

27/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 12.7% a year
✗ Profit fell 125.5% in the latest year

Quality vs. Valuation

Company Quality

23/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

—/ 100

Unknown

What you are being asked to pay, ignoring how good the business is.

Not enough data to separate business quality from valuation for this company.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 18.7% to -62.1% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 99.2% to -55.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 63.3% to -54.6% — often a sign of competition or overexpansion.
Short-term liquidity is tight
Current ratio of 0.58 — near-term obligations exceed near-term assets.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -29.4x — little room if earnings dip.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹11 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 80.7 points, from 18.7% to -62.1%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -13.8x to -29.4x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 21% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.58 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 18.7% to -62.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 99.2% to -55.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -64%✓ -62.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹9 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -29.4x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -54.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

1 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 5 neutral · 5 weak

Market Cap

₹45 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

-55.1%

Weak

Weak capital efficiency

ROCE

-54.6%

Weak

Low return on total capital employed

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

-0.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-125.5%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹9 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹72

Gross Margin

51.8%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

-105.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.58

Tight

Tight short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

80.7 / 84.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

8.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹15 Cr	₹12 Cr	₹10 Cr	₹10 Cr	-12.7%
EBITDA	₹3 Cr	₹1 Cr	-₹5 Cr	-₹6 Cr	—
EBITDA Margin	18.7%	7.4%	-50.7%	-62.1%	—
PAT (Net Profit)	₹2 Cr	-₹0 Cr	-₹5 Cr	-₹11 Cr	—
EPS	₹3.82	₹-0.62	₹-9	—	—
ROE	99.2%	-5.8%	-20.6%	-55.1%	—
ROCE	63.3%	6.6%	-21.7%	-54.6%	—
Total Debt	₹3 Cr	₹15 Cr	₹4 Cr	₹3 Cr	+3.8%
Free Cash Flow	₹2 Cr	-₹1 Cr	-₹9 Cr	-₹9 Cr	—

🔴 Revenue has shrunk at 12.7% a year over 3 years.

🔴 EBITDA has turned negative, from ₹3 Cr to -₹6 Cr.

🔴 EBITDA Margin has fallen from 18.7% to -62.1% over 3 years (-80.7 pts).

🔴 PAT (Net Profit) has turned negative, from ₹2 Cr to -₹11 Cr.

🔴 ROE has fallen from 99.2% to -55.1% over 3 years (-154.2 pts).

🔴 ROCE has fallen from 63.3% to -54.6% over 3 years (-117.8 pts).

🔴 Total Debt has grown at 3.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹9 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹25 Cr

Total Liabilities

₹6 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹7 Cr

Capex

-₹2 Cr

Recent News

6 general

Grill Splendour Services Ltd Peer Comparison – Compare with Others

Value Research, 02 Sept

GRILL SPLENDOUR SER LTD Share Price

Upstox, 06 May

Grill Splendour Services Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Grill Splendour Services Share News - Latest Updates, Live News & More

scanx.trade, 14 Sept

IPO Calendar April 2024: Upcoming IPOs On NSE, BSE for April 15 - April 19

Goodreturns, 07 Oct

ACEVECTOR LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 09 Oct

Watch Items

Revenue growth is negative (-0.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🔴Financial HealthStretched7.8/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak2.5/15

🟡ValuationFair7.5/15

🔴RiskHigh2.5/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -64%-62.1%
✗Free cash flow remains positive-₹9 Cr
✗Interest cover stays above 3x-29.4x
✗ROCE stays above 8%-54.6%