The Straits Times Index (SGX: ^STI) just rose slightly 0.6% in April 2026, with a familiar trio of stocks ranking among the poorest performers.

Singtel was the worst performer with a total return of around -7.1%. It was closely followed by Jardine Matheson Holdings, or JMH, at -4.6%, and Jardine Cycle & Carriage, or JC&C, at -5.9%.

Interestingly, all three companies reported growth in their underlying profits in their most recent earnings reports.

This raises the question: why did the market sell off these stocks?

The answer lies less in the headline profit figures and more in the underlying details that investors are scrutinizing.

Singtel

Singtel's third-quarter results for the financial year ending 31 March 2026 (3QFY2026) appeared robust at first glance.

Operating revenue increased by 0.9% year-on-year to S$3.7 billion, while operating profit grew 5.3% year-on-year to S$362 million.

Underlying net profit rose 9.5% year-on-year to S$744 million, supported by a 15.4% increase in the share of post-tax profits from regional associates, primarily driven by Bharti Airtel and AIS.

However, a closer examination reveals a more nuanced picture.

Operating profit for Singtel Singapore – the company's domestic market – fell 9.7% year-on-year. This was due to an 11% decline in mobile service revenue, caused by intense price competition and lower roaming income.

In essence, the group's overall growth is heavily reliant on its associates and its IT services division, NCS, where operating profit surged 32% and quarterly bookings reached S$855 million.

For income-focused investors, there was a clear positive: the interim dividend for the first half of FY2026 was S$0.082 per share, representing a 17.1% increase compared to the prior year.

Additionally, Singtel realized S$1.5 billion in net proceeds during the quarter from the sale of a 0.8% direct stake in Bharti Airtel.

Jardine Matheson

A similar narrative of surface-level growth masking underlying complexities was evident for Jardine Matheson Holdings (JMH).

For the full year 2025, ended 31 December 2025, revenue decreased by 4% year-on-year to US$34.2 billion. This was primarily due to weaker contributions from Astra International, impacted by a depreciating Indonesian rupiah and challenging macroeconomic conditions.

Despite the revenue decline, underlying net profit increased by 11% to US$1.7 billion. This improvement was fueled by stronger performances from DFI Retail Group (up 35%), Jardine Pacific (up 28%), and JC&C's businesses excluding Astra (up 56%).

Free cash flow grew by 9% year-on-year to US$4.0 billion.

The company's balance sheet also showed significant improvement.

The JMH parent company ended the year with a net cash position of US$41 million, a notable reversal from net borrowings of US$1.3 billion a year earlier. This followed a group-wide capital recycling initiative totaling US$4.8 billion.

The full-year dividend was US$2.35 per share, a 4% increase year-on-year, with no special dividend announced.

Critically, management guided that underlying earnings for FY2026 are expected to be broadly similar to those of FY2025 (after adjusting for disposals and the reclassification of the Zhongsheng investment), alongside a full-year dividend of at least US$2.45 per share.

While these are solid fundamentals, the flat earnings outlook provided little catalyst for a positive reassessment of the share price.

Jardine Cycle & Carriage

Jardine Cycle & Carriage (JC&C) provides perhaps the clearest example of how headline growth can conceal weaker underlying trends.

For FY2025, revenue fell 4% year-on-year to US$21.4 billion, while profit attributable to shareholders increased by 5% to US$998 million.

Free cash flow improved by 7% to US$2.1 billion, supported by operating cash flow of US$3.2 billion.

The drivers behind the profit increase, however, warrant closer analysis.

Contributions from the Indonesia operations decreased by 8% year-on-year. Astra International was adversely affected by softer performance in mining services, coal mining, and new car sales, amid heightened competition and a weaker rupiah.

Offsetting this decline were a 25% year-on-year improvement in contributions from Vietnam (driven by stronger results from THACO and REE), higher earnings from the Cycle & Carriage business in Singapore, a US$26 million foreign-exchange translation gain on corporate loans, and reduced financing costs.

The full-year dividend of US$1.13 per share increased by just 1% year-on-year – a signal that dividend payments are aligned with core earnings growth rather than the superficial 5% lift in reported profit.

Corporate net debt did decrease to US$577 million from US$816 million, aided by the partial divestment of the company's stake in Vinamilk.

Underperformance Isn't Always a Verdict

A 2% decline in the STI serves as a reminder that even blue-chip stocks can experience weak periods.

The three stocks that underperformed in April 2026 all reported growth in their underlying profits.

Yet, their share prices reflected a different assessment: that the quality of that growth and the clarity of the future outlook are equally important.

For investors focused on dividends, the more valuable analysis involves looking beyond short-term monthly returns.