Southern Magnesium and Chemicals Limited has formally notified BSE Limited of its exemption from submitting the disclosure of related party transactions as required under Regulation 23(9) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the financial year ended 31st March, 2025. The communication, dated 04.05.2026, was addressed to BSE Limited at Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai.

Regulatory Background

Under Regulation 23(9) of SEBI (LODR) Regulations, 2015, every listed company is required to submit to the stock exchange a disclosure of related party transactions on the date of publication of its financial results for each half year. This requirement is part of SEBI's broader framework to ensure transparency and accountability in transactions between listed entities and their related parties.

Basis for Exemption

Southern Magnesium and Chemicals Limited has cited Regulation 15(2) of SEBI (LODR) Regulations, 2015 as the basis for its exemption. The company has stated that the relevant financial thresholds were not met as on the last day of the financial year ended 31st March, 2025. The key parameters are summarised below:

The company has confirmed that both its paid-up share capital and net worth do not exceed the prescribed limits of Rs. 10 Crores and Rs. 25 Crores, respectively, thereby qualifying for the exemption.

Company Communication

The disclosure was signed by Pasupulati Manisha, Company Secretary and Compliance Officer (M. No: A72576), on behalf of Southern Magnesium and Chemicals Limited, from its registered office at Deccan Chambers, 5th Floor, 6-3-666/B, Somajiguda, Hyderabad-500 082. The company has requested BSE Limited to take the communication on record.

As a result of this exemption, Southern Magnesium and Chemicals Limited is not required to submit the disclosure of related party transactions as per Regulation 23(9) of SEBI (LODR) Regulations, 2015 for the financial year ended 31st March, 2025.

Southern magnesium & chemicals Limited has announced its unaudited financial results for the quarter ended December 31, 2025, following the board meeting held on February 5, 2026. The company reported a net loss of ₹4.08 lakhs for Q3FY26, marking a significant decline from the profit of ₹34.93 lakhs recorded in the corresponding quarter of the previous year.

Financial Performance Overview

The company's financial performance showed considerable deterioration across key metrics during the third quarter. Revenue from operations declined substantially to ₹58.18 lakhs compared to ₹173.85 lakhs in Q3FY25, representing a decrease of 66.52%. Total income, including other income of ₹14.90 lakhs, stood at ₹73.08 lakhs against ₹189.55 lakhs in the previous year.

Expense Analysis

Total expenses for the quarter amounted to ₹78.53 lakhs compared to ₹141.96 lakhs in Q3FY25. Despite the reduction in absolute terms, expenses exceeded total income, resulting in the quarterly loss. Cost of raw materials consumed decreased to ₹20.97 lakhs from ₹96.07 lakhs, while employee benefits expense remained relatively stable at ₹18.48 lakhs compared to ₹22.43 lakhs in the previous year.

Nine-Month Performance

For the nine months ended December 31, 2025, the company reported a net profit of ₹6.76 lakhs, significantly lower than ₹326.68 lakhs achieved in the corresponding period of the previous year. Revenue from operations for the nine-month period stood at ₹245.69 lakhs compared to ₹1,162.37 lakhs in the previous year, indicating sustained operational challenges.

Board Meeting and Regulatory Compliance

The board of directors approved these results at their meeting held on February 5, 2026, at the company's registered office in Hyderabad. The meeting was conducted in accordance with Regulation 30 and 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Managing Director and CFO N. Rajender Prasad signed the official communication to BSE Limited, where the company is listed with scrip code 513498.

Additional Regulatory Updates

The company also announced that SEBI has initiated a special window for re-lodgement of physical share transfer deeds from February 5, 2026, to February 4, 2027. This initiative covers transfer deeds that were lodged prior to April 2019 and were returned or rejected due to document deficiencies. During this period, re-lodged securities will be issued only in demat mode subject to compliance requirements.