Gensol Engineering Shares Tank 54% in 10 Days, Hits Lower Circuit Ahead Of Stock Split; Here's Why

Shares of Gensol Engineering Ltd. have been on a steep decline, plunging 54% in the last 10 trading sessions, with multiple instances of the stock hitting its lower circuit limit. The relentless sell-off comes amid a combination of corporate developments, including a 1:1 stock split, CFO resignation, financial irregularities, and promoter stake sale. On Wednesday, Gensol Engineering shares locked in the lower circuit as selling pressure continued to mount. Investors have been offloading the stock amid increasing concerns over the company's governance, financial transparency, and execution challenges.

Gensol Engineering Share Price Today

Gensol Engineering shares were trading at ₹276.05, down ₹14.50 or 4.99% in today's session. The stock has been on a sharp decline, plummeting over 50% in the last 12 consecutive trading sessions, with six of those sessions hitting the lower circuit. Over the past five days, the stock has fallen 17.55%, while in the last month, it has declined by 54.17%. The downtrend extends further, with a 70.02% decline in the past six months. So far in 2025, Gensol Engineering has shed 64.24% of its value year-to-date.

Why Did Gensol Engineering Shares Slip Today?

Gensol Engineering shares continued their sharp decline following multiple negative developments surrounding the company.
Firstly Gensol engineering recently announced that its Chief Financial Officer (CFO), Ankit Jain, has stepped off from his post citing personal reasons. His resignation will take effect on March 13, 2025, in compliance with SEBI regulations. The sudden exit of a key executive has raised concerns among investors, leading to increased volatility in Gensol Shares.

Previously, other reports circulating online suggested that Gensol Engineering had falsified documents related to its debt servicing track record which created doubts over the company's financial integrity and compliance standards, triggering panic selling.

Earlier this week, the company's promoters offloaded a 2.3% stake, amounting to 9,00,000 equity shares. While such a move typically raises red flags among investors, Gensol Engineering attempted to counterbalance the negative sentiment by announcing a fresh capital infusion. The company stated that its promoters have infused Rs.29 crore through the conversion of warrants into equity mint Reported.As per an exchange filing, these warrants will be converted into 4,43,934 equity shares at Rs.871 per share.

Gensol Engineering Q3FY25 Results

Gensol Engineering Q3 FY25 Financial Report Gensol Engineering reported a mixed financial performance in Q3 FY25, with net profit declining 22.11% quarter-over-quarter to Rs. 17.86 crore, while revenue from operations saw a marginal 0.42% dip to Rs. 345.34 crore. Profit before tax also dropped 35.70% to Rs.15.97 crore. However, on a year-on-year (YoY) basis, overall income grew 30% to Rs. 345 crore, and consolidated net profit increased 6% to Rs. 18 crore. EBITDA rose 19% YoY to Rs. 63 crore, though the EBITDA margin slipped from 20.1% in Q3 FY24 to 18.3% in Q3 FY25.

Gensol Engineering Stock Split Update

Gensol Engineering has scheduled a board meeting on March 13, 2025, to discuss a potential first-ever stock split. In an exchange filing, the company stated, "The Board of Directors will meet on Thursday, March 13, 2025, to consider a proposal for altering the share capital structure through a subdivision or split of existing equity shares with a face value of ₹10 each, fully paid-up. This will be subject to shareholder approval and necessary regulatory clearances