Shree hari chemicals export Limited has made a strategic investment of Rs. 4,94,99,990 in its wholly owned subsidiary Shakambhari Dyechem Private Limited (SDPL) through subscription to a rights issue. The investment was completed on March 23, 2026, as disclosed under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Investment Details

The company received allotment of equity shares from SDPL under the rights issue arrangement. The investment structure demonstrates the parent company's commitment to expanding its subsidiary's operations in the chemical sector.

Shareholding Changes

Following this investment, the shareholding structure in SDPL has been significantly enhanced while maintaining the wholly owned subsidiary status.

Business and Investment Rationale

Shakambhari Dyechem Private Limited operates in the chemical business, specifically engaged in manufacturing dye and dye-intermediaries used for dye-stuffs. The subsidiary was incorporated on April 24, 2024, and currently has no operational turnover. The investment is strategically aimed at funding SDPL's capital expenditure requirements for proposed expansion activities.

Regulatory Compliance

The transaction has been structured in compliance with regulatory requirements. While SDPL is a related party as a wholly owned subsidiary, the investment in the rights issue does not fall within the ambit of Related Party Transactions as per Listing Regulations. No governmental or regulatory approvals were required for this acquisition, and the transaction was completed entirely through cash consideration.

Strategic Impact

This investment represents Shree Hari Chemicals Export Limited's expansion strategy within the chemical sector, particularly in the dye and dye-intermediaries segment. The funding will enable SDPL to pursue its planned expansion activities and establish operational capabilities in the manufacturing of specialized chemical products for the dye-stuffs industry.

Shree Hari Chemicals Export Limited announced its unaudited financial results for the quarter ended December 31, 2025, pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board of Directors approved these results at their meeting held on January 31, 2026, presenting a mixed performance with revenue growth offset by declining profitability.

Financial Performance Overview

The company's standalone financial results revealed contrasting trends in revenue and profitability metrics during Q3FY26. While the top-line showed positive momentum, bottom-line performance faced significant pressure.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the company demonstrated stronger overall performance compared to the quarterly results. Revenue from operations reached ₹14,328.94 lakhs, marking a 34.96% increase from ₹10,616.97 lakhs in the corresponding period of the previous year.

Operational Expenses and Cost Structure

The company's expense structure showed significant variations during the quarter. Total expenses increased to ₹4,333.82 lakhs from ₹3,572.10 lakhs in Q3FY25. Cost of materials consumed rose to ₹2,528.46 lakhs compared to ₹2,262.67 lakhs in the previous year. Purchase of stock-in-trade amounted to ₹3.97 lakhs during the quarter.

Employee benefit expenses increased to ₹418.80 lakhs from ₹373.67 lakhs year-on-year. Finance costs decreased to ₹55.75 lakhs from ₹60.43 lakhs, while depreciation and amortization expenses remained relatively stable at ₹55.26 lakhs.

Corporate Actions and Capital Structure

The company completed a significant corporate action during the quarter. On December 04, 2025, Shree Hari Chemicals allotted 6,05,494 equity shares upon conversion of an equal number of Zero Coupon Compulsorily Convertible Debentures (CCDs). The company had originally allotted 18,66,580 CCDs on November 15, 2024.

Regulatory Compliance and Governance

The Board of Directors approved these unaudited financial results at their meeting held on January 31, 2026, which commenced at 03:00 p.m. and concluded at 04:30 p.m. The results were reviewed by the Audit Committee and subsequently approved by the Board. Independent auditors Kailash Chand Jain & Co. conducted the limited review of both standalone and consolidated financial statements.

The company operates in a single business segment and maintains compliance with Indian Accounting Standards (Ind AS) prescribed under the Companies Act, 2013. The consolidated results, which include wholly-owned subsidiaries Shakambhari Dyechem Private Limited and Shakambhari Chemtech Private Limited, showed consolidated net profit of ₹122.10 lakhs for Q3FY26 compared to ₹262.93 lakhs in Q3FY25.