Explainer: Why Shankara Building Products shares have crashed 75%
Shankara Building Products (SBPL) shares crashed 75% on Wednesday, falling from ₹990.50 to ₹242.25 on the NSE.
But don't panic—this steep drop isn't a real loss. It's just a technical reset, with the price adjustment reflecting the demerger and transfer of the trading business to Shankara Buildpro (SBL) occurring on September 24.
What's happening?
For every SBPL share you owned, you now get one SBL share too.
The National Company Law Tribunal approved this split, and business value was divided: about two-thirds went to SBL and one-third stayed with SBPL.
That's why prices shifted so sharply—the value is just split between two companies now.
Is the company still profitable?
Yes! Even with all these changes, SBPL doubled its net profit year-on-year to ₹32 crore and grew revenue by 27% to ₹1,644 crore in Q1 FY26.
So while your shares look cheaper, your total investment hasn't dropped—you just own pieces of both companies now.