Puretrop fruits shares surged 3% today after the company announced a significant buyback program worth ₹22 crores, demonstrating management's confidence in the business amid improving operational performance. The stock reached a high of ₹178.50 compared to the previous day's closing price of ₹173.50, with the company currently holding a market capitalization of ₹141 crores.

Buyback Program Details

The board of directors has approved a buyback of up to 11 lakh equity shares at ₹200 per share, representing a substantial 15% premium to the previous closing price. This buyback initiative accounts for 17.42% of the company's paid-up capital and free reserves, indicating a meaningful capital allocation decision.

The timing of this announcement coincides with the company's return to profitability, supported by income from discontinued operations and enhanced cost management through restructuring activities.

Strong Financial Performance

Puretrop Fruits demonstrated robust financial improvement in Q3 FY26, marking a significant turnaround from the previous year's performance. The company's operational metrics show substantial growth across key parameters.

This financial turnaround reflects the company's successful restructuring efforts and improved operational efficiency in its core business segments.

Promoter Participation and Governance

The buyback program gains additional credibility through promoter participation, with the promoter group holding approximately 62.4% of the company's equity. This alignment of interests between promoters and minority shareholders strengthens the buyback's strategic rationale. Additionally, 15% of the buyback has been reserved for small shareholders as per regulatory requirements, ensuring retail investor participation.

Business Operations

Puretrop Fruits operates as an integrated agribusiness entity specializing in sourcing, processing, and exporting fresh fruits, vegetables, fruit pulp, concentrate, and cold-processed juice. The company has established itself as a reliable supplier of grapes and pomegranates from India to European retail markets over several years.

The company's competitive advantages include:

• Strong farmer linkages ensuring consistent supply
• Adherence to highest food safety and traceability standards
• State-of-the-art fruit processing facility located in Nashik
• Sustainable business model focused on quality-based exports

Market Valuation Context

Currently, Puretrop Fruits shares trade at a price-to-earnings ratio of 63, significantly higher than the industry average of 21.7, reflecting investor optimism about the company's growth prospects and recent operational improvements. The buyback announcement at a 15% premium further validates management's confidence in the company's intrinsic value and future performance potential.

Puretrop fruits Limited has delivered a strong financial turnaround in Q3FY26, reporting significant profit growth and announcing a substantial share buyback program. The company's board meeting held on January 12, 2026, approved quarterly results and several strategic decisions including leadership appointments and shareholder value enhancement initiatives.

Financial Performance Shows Strong Recovery

The company demonstrated a remarkable financial recovery in Q3FY26 with substantial improvements across key metrics:

The company's nine-month performance for FY26 also showed strong results with total income of ₹8,395.21 lakhs and net profit of ₹2,155.02 lakhs compared to ₹1,333.96 lakhs in the corresponding period of FY25.

Major Share Buyback Program Approved

The board approved a significant share buyback program with the following key parameters:

The buyback is subject to shareholder approval through special resolution via postal ballot and regulatory approvals. The company's promoters and promoter group members have indicated their intention to participate in the proposed buyback.

Key Leadership Changes Announced

The company announced several important leadership transitions effective from different dates:

CEO Appointment: Ms. Dipti Motiani, currently Vice President and daughter of Managing Director Mr. Ashok Motiani, will be appointed as Chief Executive Officer effective March 1, 2026. She holds a Bachelor's degree in Computer Engineering and has been associated with the company since 2009, bringing significant experience in strategic planning and operational excellence.

Company Secretary Changes: Ms. Preeti Jaiswar will resign as Company Secretary effective January 31, 2026, and will be succeeded by Ms. Vanshika Lunia, an Associate Member of the Institute of Company Secretaries of India, effective February 1, 2026.

Current Shareholding Structure

As of December 31, 2025, the company's pre-buyback shareholding pattern shows:

The company continues to benefit from its discontinued operations, which contributed ₹11.04 lakhs profit in Q3FY26 and ₹1,571.13 lakhs for the nine-month period, primarily from revenue-sharing arrangements related to its previously transferred fresh fruit business operations.