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The year 2025 is turning out to be a painful year for the retail investors’ favourite small-cap segment, with the majority of stocks in the space witnessing sharp losses and slipping to multi-month lows. The fall has been largely driven by a reset in valuations amid a growing mismatch between fundamentals and stock prices.

Several stocks that had once delivered solid returns to shareholders have also failed to escape the broad-based sell-off, causing a sharp erosion in retail portfolios.

However, the Street has rewarded companies that delivered consistent growth in their financial performance, with one among them being Cupid.

The company, which is one of the country’s leading manufacturers and brands of male and female condoms, has seen its shares skyrocket in 2025 even amid sharp volatility in the broader market, emerging as one of the standout performers.

After remaining under pressure for over a year, Cupid shares made a stellar rebound in April with a surge of 25%, and the momentum further strengthened in the following eight months (including December) as the stock closed each subsequent month higher, resulting in a massive gain of 600%.

During this period, the shares moved from ₹62 apiece to the previous close of ₹437. Impressively, the stock recorded double-digit gains in six of those eight months, with July 2025 delivering the biggest monthly gain of 40%, which was also the stock’s largest monthly increase in over a year.

This latest explosive rally has also contributed to an 890% gain in two years, 3,600% in three years, and a sharp 3,700% over the last five years, making the stock one of the biggest wealth creators in the Indian stock market.

The rise in demand for Cupid shares on Dalal Street is driven by the company’s steady growth in net profit, ongoing capacity expansion, and its strong track to achieve FY26 topline guidance. Investors appear confident that the company’s fundamentals can sustain the momentum seen in recent quarters.

The September quarter turned out to be the strongest in the company's history in terms of both revenue and profitability, driven by broad-based strength across India’s FMCG sector and B2B exports.

It reported a 103% rise in operating income to ₹84.45 crore in Q2, with a 176% year-on-year rise in EBITDA to ₹28.41 crore. Margins expanded by nearly 900 basis points to 34%.

On the bottom line, net profit came in at ₹24.12 crore, a 140% YoY improvement, marking the sixth consecutive quarter of steady net profit growth.

The stellar performance is expected to continue in the remaining two quarters, as H2 has historically outperformed H1, backed by strong order visibility and improving execution.

Looking ahead, the company remains on course to achieve its FY26 topline guidance of ₹335 crore, with an upward bias, given the positive developments across segments. It also aims to grow its net profit to over ₹100 crore for the year.

Meanwhile, the company's ongoing capacity expansion is set to increase the capacity by 2.5x and enable it to scale operations post commissioning of the new plant in FY27.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

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