Arex Industries Limited has submitted its quarterly compliance certificate under SEBI regulations, demonstrating adherence to securities handling requirements for the quarter ended March 31, 2026. The textile label manufacturer filed the mandatory confirmation certificate as required under Regulation 74(5) of SEBI (Depositories & Participants) Regulations, 2018.

Regulatory Compliance Submission

The company submitted the confirmation certificate on April 09, 2026, to BSE Limited through its Managing Director Neel Bilgi. The certificate was prepared and provided by MUFG Intime India Private Limited (formerly Link Intime India Private Limited), which serves as the company's Registrar and Transfer Agent.

Certificate Confirmation Details

MUFG Intime India Private Limited confirmed that all securities received from depository participants for dematerialization during the quarter were properly processed within prescribed timelines. The RTA verified that:

• Securities received for dematerialization were confirmed or rejected to depositories as required
• All securities comprised in certificates have been listed on stock exchanges where previously issued securities are listed
• Security certificates received for dematerialization were mutilated and cancelled after due verification
• Names of depositories were substituted in the register of members as registered owners within prescribed timelines

Regulatory Framework

The submission falls under SEBI's regulatory framework governing depositories and participants, ensuring proper handling of securities dematerialization and rematerialization processes. The certificate was also copied to National Securities Depository Limited and Central Depository Services (India) Limited, maintaining transparency across all relevant depository institutions.

Company Background

Arex Industries Limited operates as a manufacturer of textile labels with its registered office and plant located at GIDC Estate, Chhatral, Gandhinagar, Gujarat. The company maintains its corporate identification number as L14101GJ1989PLC012213 and continues to fulfill its regulatory obligations as a listed entity.

Arex Industries Limited reported a significant decline in quarterly profitability for Q3 FY26, with net profit falling 73.4% year-on-year to ₹25.98 lakhs compared to ₹97.73 lakhs in the corresponding quarter of the previous fiscal year. The company's financial results for the quarter ended December 31, 2025, were approved by the Board of Directors on January 27, 2026.

Financial Performance Overview

The company's revenue from operations declined marginally by 1.6% to ₹1,298.65 lakhs in Q3 FY26 from ₹1,320.06 lakhs in Q3 FY25. Total income remained relatively stable at ₹1,298.65 lakhs compared to ₹1,320.12 lakhs in the year-ago period.

Cost Structure Analysis

The primary factor behind the profit decline was a substantial increase in employee benefit expenses, which rose 18.9% to ₹512.05 lakhs from ₹430.63 lakhs in Q3 FY25. This represented the largest expense component, accounting for approximately 39.4% of total revenue.

Nine-Month Performance

For the nine-month period ended December 31, 2025, the company reported net profit of ₹150.71 lakhs, down 36.6% from ₹237.66 lakhs in the corresponding period of FY25. Revenue from operations declined 3.2% to ₹3,726.08 lakhs from ₹3,850.51 lakhs.

Sequential Quarter Comparison

Comparing with the previous quarter (Q2 FY26), net profit declined significantly from ₹100.04 lakhs to ₹25.98 lakhs, while revenue remained relatively stable at ₹1,298.65 lakhs versus ₹1,300.70 lakhs.

Regulatory Compliance

The financial results were prepared in accordance with Indian Accounting Standards prescribed under Section 133 of the Companies Act, 2013, and Regulation 33 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The results underwent limited review by statutory auditors Sweta Patel & Associates, Chartered Accountants, who provided an unqualified review report. The company maintains a single reportable segment, eliminating the need for segmental reporting disclosures.