Ador welding Limited announced its unaudited financial results for the third quarter ended 31st December 2025, demonstrating strong operational performance with significant growth in profitability. The company's Board of Directors approved the results at their meeting held on 16th January 2026.

Financial Performance Highlights

The company delivered robust financial results for Q3FY26, with key metrics showing substantial improvement over the previous year.

Other income contributed ₹123.60 crores in Q3FY26, significantly higher than ₹41.40 crores in the corresponding quarter of the previous year. This increase was primarily driven by the recovery of ₹84.40 crores from doubtful receivables related to a Kuwait project executed during FY 2020-21.

Nine-Month Performance Analysis

For the nine months ended 31st December 2025, the company maintained strong momentum across operational metrics.

Segment-wise Performance

The company operates through two primary business segments, with welding continuing to be the dominant revenue contributor.

Welding Segment

The welding segment delivered strong performance with revenue of ₹2,655.30 crores in Q3FY26 compared to ₹2,591.60 crores in Q3FY25, representing a growth of 2.46%. Segment results showed ₹386.70 crores in Q3FY26 versus ₹331.40 crores in the previous year.

Flares & Process Equipment Segment

This segment generated revenue of ₹214.50 crores in Q3FY26 compared to ₹139.00 crores in Q3FY25. However, the segment faced operational challenges with cost overruns and liquidated damages provisions of ₹279.20 crores recognized during the nine-month period.

Exceptional Items and Regulatory Impact

The company reported exceptional items totaling ₹59.00 crores in Q3FY26, primarily related to the implementation of new Labour Codes. On November 21, 2025, the Government of India notified four Labour Codes, resulting in an incremental impact of ₹59.00 crores on gratuity and leave encashment due to changes in wage definition.

Operational Expenses and Efficiency

Total expenses for Q3FY26 stood at ₹2,569.80 crores compared to ₹2,543.90 crores in Q3FY25. Key expense components included:

• Cost of materials consumed: ₹1,492.70 crores
• Employee benefits expense: ₹298.90 crores
• Other expenses: ₹435.20 crores
• Depreciation and amortization: ₹49.10 crores

The company maintained efficient working capital management with changes in inventories showing a positive impact of ₹60.70 crores during the quarter.

Balance Sheet Strength

The company's financial position remained robust with total assets of ₹7,960.50 crores as of 31st December 2025, compared to ₹6,735.10 crores in the previous year. Total liabilities stood at ₹2,663.20 crores, resulting in a strong capital employed base of ₹5,297.30 crores.

Paid-up equity share capital remained stable at ₹174.00 crores with a face value of ₹10 per share. The company continues to maintain a strong balance sheet structure supporting its growth initiatives across both business segments.

Ador Welding Limited has delivered exceptional financial performance in the third quarter, showcasing significant improvements across key profitability metrics. The company demonstrated strong operational efficiency with substantial growth in revenue, net profit and EBITDA, reflecting robust business momentum and effective management execution.

Financial Performance Overview

The company's Q3 results highlighted impressive year-on-year growth across critical financial parameters. Revenue grew 6.2% to ₹290 crores from ₹273 crores in the corresponding quarter of the previous year, while the substantial improvement in profitability metrics indicates strong operational performance and effective cost management strategies during the quarter.

Profitability and Margin Analysis

The company's EBITDA performance showed remarkable improvement, rising 45% to ₹35.20 crores from ₹24.20 crores in the corresponding quarter of the previous year. More significantly, the EBITDA margin expanded substantially to 12.27% from 8.86%, representing an improvement of 341 basis points year-on-year.

This margin expansion demonstrates Ador Welding's enhanced operational efficiency and pricing power in the market. The simultaneous growth in absolute EBITDA and margin improvement indicates the company's ability to optimize its cost structure while scaling operations effectively.

Business Performance Assessment

The 61% surge in standalone net profit to ₹27.10 crores, combined with the strong EBITDA growth and steady revenue expansion, reflects the company's comprehensive operational excellence. The significant improvement in profitability metrics suggests successful implementation of strategic initiatives and effective business execution capabilities.

As a player in the capital goods non-electrical equipment sector, Ador Welding's robust quarterly performance positions the company favorably within its industry segment. The strong financial results demonstrate the company's resilience and ability to capitalize on market opportunities while maintaining operational excellence and delivering consistent value to stakeholders.