Vaxfab Enterprises Limited announced its unaudited financial results for the quarter ended December 31, 2025, presenting a mixed performance with standalone operations turning profitable while consolidated results remained in the red. The Board of Directors approved these results at their meeting held on February 14, 2026.

Financial Performance Overview

The company's financial performance for Q3FY26 showed significant variation between standalone and consolidated operations:

Operational Analysis

Revenue from operations for the quarter reached ₹1566.29 lakhs, representing a substantial increase from ₹914.39 lakhs in the corresponding quarter of the previous year for standalone operations. The company's total expenses for standalone operations were ₹1526.98 lakhs compared to ₹1346.33 lakhs in Q3FY24.

The standalone operations achieved a profit before tax of ₹39.31 lakhs, marking a significant turnaround from the loss of ₹418.23 lakhs recorded in the same quarter last year. After accounting for tax expenses of ₹16.36 lakhs, the company reported a net profit of ₹22.98 lakhs.

Consolidated Results

Consolidated operations, which include subsidiary Eklingji Tradelink Private Limited, showed a different picture. Despite similar revenue from operations, the consolidated entity reported a net loss of ₹323.52 lakhs for Q3FY26. Total consolidated revenue was ₹1229.61 lakhs due to negative other income of ₹336.68 lakhs.

Auditor Qualifications

The statutory auditors, Chandabhoy & Jassoobhoy Chartered Accountants, issued qualified opinions on both standalone and consolidated financial results, highlighting several areas of concern:

Key Audit Issues

• Documentation Deficiencies: Inadequate supporting documents for trade receivables and payables, with external confirmations not obtained
• MSMED Compliance: Lack of requisite details for classification of creditors under the Micro, Small, and Medium Enterprises Development Act, 2006
• Employee Benefits: No provision recognized for gratuity liability and absence of actuarial valuation as required under Ind AS 19
• Impairment Assessment: Company has not carried out impairment assessment of financial assets under Expected Credit Loss model prescribed under Ind AS 109
• Loan Documentation: Unsecured loans granted and received without formal agreements or confirmations from parties

Share Capital and EPS

The company maintained its paid-up equity share capital at ₹840.00 lakhs with a face value of ₹1 per share. Basic and diluted earnings per share for standalone operations improved to ₹0.27 from ₹(4.25) in the corresponding quarter of the previous year.

Regulatory Compliance

The financial results were prepared in accordance with Companies (Indian Accounting Standard) Rules, 2015, and comply with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subsequently approved by the Board of Directors on February 14, 2026.

Vaxfab enterprises Limited has successfully completed the allotment of 27,33,903 equity shares upon conversion of warrants, as approved by its Board of Directors on March 17, 2026. The allotment was executed at a price of Rs. 21.02 per share on a preferential basis to four institutional investors.

Allotment Details

The company allotted equity shares with a face value of Rs. 10 each, fully paid up upon conversion of warrants into equity shares. The newly allotted shares rank pari-passu in all respects with the existing equity shares of the company.

Impact on Share Capital

Following this allotment, the company's paid-up equity share capital has increased significantly. The total paid-up capital now stands at Rs. 19,60,89,380, comprising 1,96,08,938 equity shares of Rs. 10 face value each.

Warrant Conversion Structure

The warrants carried conversion rights allowing holders to subscribe to one equity share per warrant. The total consideration of Rs. 21.02 per warrant was paid in two tranches - Rs. 5.255 at the time of warrant allotment and Rs. 15.765 at conversion.

Regulatory Compliance

The allotment was conducted in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The warrants had a tenure not exceeding 18 months from the date of original allotment, providing flexibility to investors for conversion timing.

The Board meeting for approving this allotment commenced at 1:30 PM and concluded at 1:50 PM on March 17, 2026, demonstrating efficient decision-making processes.