Pratiksha Chemicals Limited has withdrawn its proposed fully convertible warrants and preferential equity share issue, citing withdrawal of consent by some investors. The Board of Directors made this decision on February 24, 2026, reversing their earlier approval from January 21, 2026.

Withdrawal Details

The company has cancelled the following proposals that were originally approved in the Board meeting held on January 21, 2026:

The withdrawal was necessitated due to some proposed investors withdrawing their consent to subscribe to the issue, prompting the Board to reconsider the entire proposal during their meeting on February 24, 2026.

Subsidiary Acquisition Plans Shelved

Alongside the share issue withdrawal, the Board has also decided not to proceed with acquiring control over two companies that were planned to become subsidiaries:

• Rudra Professional Services Private Limited
• Right Debt Management Services Private Limited

These acquisition plans were part of the company's expansion strategy but have been put on hold in light of the current circumstances.

Company Assurance

Despite the withdrawal of these significant corporate proposals, Pratiksha Chemicals has assured stakeholders that this decision will not adversely affect the company's financial stability, operations, or growth prospects. The company emphasized its commitment to maintaining transparency with all stakeholders regarding this development.

Meeting Timeline

The Board meeting where the withdrawal decision was finalized commenced at 5:00 PM and concluded at 5:20 PM on February 24, 2026. The company has informed BSE Limited about this development under Regulation 30 of SEBI LODR Regulations, ensuring compliance with disclosure requirements.

Pratiksha Chemicals Limited announced its unaudited financial results for the quarter ended December 31, 2025, showing a turnaround to profitability despite a significant decline in revenue. The Board of Directors approved these results on February 5, 2026, following review by the Audit Committee.

Financial Performance Overview

The company's financial performance for Q3FY26 presents a mixed picture with profitability returning but operational revenue declining substantially.

Nine-Month Performance

For the nine months ended December 31, 2025, the company demonstrated significant improvement in profitability compared to the previous year.

Operational Highlights

The quarter witnessed minimal operational expenses totaling ₹4.37 lakhs compared to ₹221.07 lakhs in Q3FY25. Key expense components included:

• Cost of Material Consumed: ₹0.00 lakhs (vs ₹121.50 lakhs in Q3FY25)
• Employee Benefit Expense: ₹(0.27) lakhs (vs ₹25.39 lakhs in Q3FY25)
• Other Expenditure: ₹4.17 lakhs (vs ₹37.07 lakhs in Q3FY25)

Extraordinary Items and Asset Sale

The company recorded extraordinary items worth ₹8.62 lakhs in Q3FY26. Management disclosed that subsequent to the balance sheet date, shareholders approved a special resolution for the sale of a significant portion of company assets through an Extraordinary General Meeting. An impairment provision has been recognized under "Extraordinary Items" based on the anticipated realizable value of assets identified for sale, ensuring compliance with accounting standards and regulatory requirements.

Auditor Observations

The statutory auditors, Chandabhoy & Jassoobhoy, issued a qualified opinion noting that the company accounts for Gratuity and Leave encashment on cash basis, which is not in accordance with Ind AS-1 and Ind AS-19 requirements. The extent of non-compliance in monetary terms remains unascertainable.

Capital Structure

The company maintained its paid-up equity share capital at ₹557.03 lakhs with a face value of ₹10.00 per share throughout the reporting periods.