Penny Stock Below Rs 100: This Multibagger Microcap Company Reports Highest-Ever Quarterly PAT of Rs 1.23 Crore; Shares Locked in 5% Upper Circuit

On Friday, Indian equity benchmarks traded higher, with the Nifty 50 index gaining 191.80 points, or 0.80 per cent, to 24,264.55. Amid the broader market strength, Harmony Capital Services share price was locked in the 5 per cent Upper Circuit at Rs 97.84, marking another consecutive upper circuit after the company announced a strong set of Q1 FY27 results alongside the proposed acquisition of a controlling stake in Truvolt Engineering Co Private Limited through a share swap arrangement.

Harmony Capital Services Q1 FY27 Financial Performance

Harmony Capital Services reported an improvement in its financial performance during the quarter ended June 30, 2026.

The company reported revenue from operations of Rs 441.08 lakh in Q1 FY27 compared with nil revenue in the corresponding quarter last year. Total revenue increased to Rs 441.08 lakh from Rs 39.71 lakh in the preceding quarter.

Total expenses stood at Rs 303.21 lakh, resulting in a profit before Tax (PBT) of Rs 137.87 lakh, sharply higher than Rs 34.69 lakh in the previous quarter and compared with a loss before tax of Rs 1.08 lakh in the corresponding quarter last year.

After accounting for a tax expense of Rs 15.18 lakh, the company reported a net profit of Rs 122.69 lakh, compared with Rs 34.69 lakh in the previous quarter and a net loss of Rs 1.08 lakh in the year-ago period, marking a turnaround in profitability. Basic and diluted earnings per share (EPS) stood at Rs 1.01 for the quarter.
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Harmony Capital Services Board Approves Acquisition of Truvolt Engineering

Along with its Quarterly Results, the Board approved the acquisition of 63,23,700 equity shares, representing approximately 51 per cent of the paid-up equity share capital of Truvolt Engineering Co Private Limited, through a share swap arrangement. Upon completion of the transaction, Truvolt Engineering will become a subsidiary of Harmony Capital Services, subject to shareholders' approval, BSE approval and other statutory clearances.

The proposed acquisition aims to strengthen Harmony Capital's business through strategic consolidation and expansion into engineering and manufacturing activities. Truvolt Engineering reported a turnover of approximately Rs 315.09 crore during FY26.

Related-Party Transaction

The company also disclosed that the proposed acquisition qualifies as a related-party transaction, as certain promoters and members of the promoter group of Harmony Capital Services are also promoters and shareholders of Truvolt Engineering Co Private Limited. However, the company clarified that the transaction is being undertaken on an arm's length basis, supported by independent valuation reports and a fairness opinion obtained in accordance with applicable laws.

Preferential Issue Through Share Swap

To facilitate the acquisition, the Board approved the issuance of up to 1,26,47,400 equity shares of face value Rs 10 each at an issue price of Rs 66 per share, including a premium of Rs 56 per share, aggregating Rs 83.47 crore. The preferential allotment will be made on a non-cash basis under the approved share swap arrangement. Following the allotment, the company's paid-up equity share capital will increase from Rs 12.13 crore to Rs 24.77 crore.

The transaction is based on an independent valuation, under which Harmony Capital shares have been valued at Rs 66 per share, while Truvolt Engineering shares have been valued at Rs 132 per share, resulting in a 1:2 share exchange ratio.

About Harmony Capital Services

Harmony Capital Services Ltd is an India-based listed company engaged in financial services. The company currently operates as a single reportable business segment and provides financial and investment-related services. It recently announced a strategic diversification initiative through the acquisition of a majority stake in Truvolt Engineering Co Private Limited, marking its expansion into the engineering and manufacturing sector.

Upon completion of the proposed transaction, Truvolt Engineering will become a subsidiary of the company, strengthening its presence beyond financial services. The acquisition is expected to support long-term business growth through strategic consolidation while broadening the company's operational footprint across engineering, manufacturing and fabrication activities.

What are your views on Harmony Capital Services' strong earnings turnaround and its proposed acquisition of Truvolt Engineering? Share your thoughts in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.