Penny Stock Under ₹2 Hits Upper Circuit After Dividend Move; Harshil Agrotech in Focus

Market Performance

A penny stock under ₹2 caught the market's attention today as Harshil Agrotech Limited shares surged and hit the 5% upper circuit. The sudden rally followed the company's announcement of board discussions on dividend declaration, expansion into spice processing, and the possibility of issuing bonus shares.

On the BSE, Harshil Agrotech stock opened at ₹1.32 apiece, marking its intraday high, while the intraday low stood at ₹1.31 per share. With trading locked in the upper circuit, investor interest around this low-priced counter has intensified.

Key Developments Driving the Rally

• Interim Dividend – Evaluation and possible sanction of dividend distribution.
  
  
• Business Expansion – Plans to step into spices processing and export, tapping global demand.
  
  
• Bonus Shares – Consideration of issuing bonus shares to shareholders.
  
  

This set of proposals signals the company's intention to increase shareholder value while expanding its footprint into high-growth segments of the agricultural business chain.

Company’s Strategic Shift

Harshil Agrotech emphasized that diversification into spices is a natural extension of its existing capabilities. With Indian spices enjoying robust global demand, the move opens up new growth avenues.

The company highlighted that the latest board meeting isn't just about dividends or bonus shares but also about positioning itself for long-term opportunities in export markets.

Q1FY26 Financial Performance

The company's latest results have already set a strong base for these announcements. For the quarter ending June 30, 2025 (Q1FY26):

• Revenue from Operations: ₹59.89 Crore (vs. ₹11.36 Crore in Q1FY25)
  
  
• Net Profit: ₹6.52 Crore
  
  
• Q4FY25 Comparison: A swing from a net loss of ₹78.30 lakh in the previous quarter to a solid profit this time
  
  
• Year-on-Year Growth: A sevenfold jump from ₹90.11 lakh in Q1FY25
  
  

These numbers mark a sharp turnaround in operational strength and financial stability, boosting confidence among investors tracking this penny stock, which is currently trading under ₹2.

Rights Issue Earlier This Year

Harshil Agrotech also took a significant capital-raising step earlier in 2025:

• Rights Issue Size: ₹49.38 Crore
  
  
• Equity Shares Offered: 20.32 Crore shares at ₹2.43 each
  
  
• Ratio: 2 rights shares for every 5 fully paid-up equity shares (record date: February 5, 2025)
  
  
• Bidding Outcome: Oversubscribed by 1.05 times with bids for 21,25,66,295 shares
  
  
• Listing: Closed on March 31, 2025, and later listed on BSE
  
  
• Capital Impact: Paid-up equity share capital increased from 50.80 crore to 71.12 Crore equity shares
  
  

The funds raised were earmarked for working capital, general corporate purposes, and expenses related to the issue.

Summary

• Harshil Agrotech, a penny stock trading below ₹2, has been in the spotlight after announcing upcoming decisions on dividend, spice expansion, and bonus shares.
  
  
• The stock hit the 5% upper circuit, trading at ₹1.32 on BSE.
  
  
• Strong Q1 FY26 financial results showed revenue growth to ₹59.89 crore and a net profit of ₹6.52 Crore.
  
  
• Earlier this year, the company completed a ₹49.38 Crore Rights Issue, oversubscribed by 1.05 times.
  
  

With the September 5 board meeting on the horizon, the stock continues to draw heightened investor attention in the penny stock space.