Alphageo (India) Limited , a leading geophysical services company, announced its unaudited financial results for the third quarter of fiscal year 2026, ending 31st December 2025. The company reported a net loss of ₹584.44 lakhs, representing an improvement from the ₹779.35 lakhs loss recorded in the corresponding quarter of the previous year.

Financial Performance Overview

The company's quarterly performance showed mixed results across key financial metrics:

Despite the revenue growth, the company's total expenses increased significantly to ₹2664.57 lakhs from ₹2116.93 lakhs in the previous year's corresponding quarter. Geophysical survey and related expenses constituted the largest expense component at ₹1772.94 lakhs.

Nine-Month Performance Analysis

For the nine-month period ended 31st December 2025, Alphageo reported comprehensive financial results:

The nine-month results indicate substantial revenue growth but significantly higher losses compared to the previous year.

Consolidated Results

The consolidated financial results, which include the company's subsidiaries and associate companies, showed similar trends. The consolidated net loss for Q3 FY26 was ₹596.78 lakhs compared to ₹796.49 lakhs in Q3 FY25. The consolidated revenue from operations remained identical to standalone figures at ₹1683.73 lakhs.

Regulatory and Legal Challenges

Alphageo continues to face significant regulatory challenges that impact its financial position:

FEMA Proceedings:

• Fixed deposits worth ₹1601.08 lakhs remain provisionally seized by the Directorate of Enforcement under FEMA 1999
• The company and its Chairman & Managing Director received a Show Cause Notice on 3rd February 2026
• The matter is currently under appeal before the Hon'ble Appellate Tribunal, FEMA, New Delhi

Tax-Related Matters:

• Income tax demand of ₹601 lakhs received during FY 2021-22
• Additional demand of ₹1645 lakhs against the Managing Director, indemnified by the company
• Total contingent liability of ₹2246.58 lakhs related to these tax matters

Corporate Governance

The Board of Directors meeting was held on 11th February 2026, commencing at 12:21 PM and concluding at 2:30 PM. The board approved both standalone and consolidated unaudited financial results, which were reviewed by the audit committee. The statutory auditors, MAJETI & Co., Chartered Accountants, conducted a limited review and issued an unmodified opinion on the results.

Business Outlook

Alphageo operates in the specialized field of geophysical data acquisition, processing, and interpretation services, representing a single reportable segment under Ind AS 108. The company's tagline "Spearheading India's Search for Oil" reflects its focus on supporting India's energy exploration activities. The recent implementation of consolidated labor codes from November 21, 2025, is not expected to have a material impact on the company's operations based on current assessments.

Alphageo India Limited , a leading geophysical services company, has reported a net loss of Rs 574.82 lakhs for the quarter ended September 30, despite a significant increase in total income. This financial performance, coupled with ongoing regulatory challenges, paints a complex picture for the company's current position and future outlook.

Financial Performance

Alphageo India's financial results for Q2 show a mixed scenario:

The company's total income saw a substantial rise of 146.45% year-over-year, increasing from Rs 241.58 lakhs in the previous Q2 to Rs 595.38 lakhs in the current Q2. However, this revenue growth did not translate into profitability, as Alphageo India reported a net loss of Rs 574.82 lakhs, compared to a profit of Rs 176.85 lakhs in the same quarter last year.

Operational Expenses and Profitability

The significant swing from profit to loss suggests that the company's operational expenses have increased at a rate outpacing its revenue growth. Key factors contributing to this include:

1. Geophysical survey and related expenses: Rs 502.48 lakhs
2. Employee benefits expense: Rs 320.40 lakhs
3. Depreciation and amortisation expenses: Rs 429.64 lakhs

These expenses, among others, have led to total expenses of Rs 1,348.45 lakhs for the quarter, significantly exceeding the total income.

Regulatory Challenges

Alphageo India is currently facing notable regulatory issues:

1. The Directorate of Enforcement has seized fixed deposits amounting to Rs 1,601.08 lakhs under the Foreign Exchange Management Act, 1999 (FEMA 1999). The company has challenged this action before the Hon'ble Appellate Tribunal, FEMA, New Delhi, and is awaiting adjudication proceedings.

2. A tax demand of Rs 1,645 lakhs has been issued to the Managing Director in his personal capacity, related to an ongoing tax matter pertaining to the company. Alphageo India has indemnified this amount, which is now classified under non-current income tax assets.

3. An additional contingent liability of Rs 601 lakhs from a demand notice by the Income Tax department is also under consideration.

The total contingent liability related to these tax matters amounts to Rs 2,246.58 lakhs.

Management's Stance

The company's management, based on external expert opinions, has not made any provisions for these regulatory challenges in the financial statements. They are awaiting further proceedings and show-cause notices from the relevant authorities before taking any financial action.

Outlook

While Alphageo India has shown strong revenue growth, the company's immediate focus will likely be on managing its operational costs and addressing the ongoing regulatory challenges. The resolution of these issues could have a significant impact on the company's financial position and future operations.

Investors and stakeholders will be keenly watching how Alphageo India navigates these challenges while capitalizing on the growth in its core geophysical services business. The company's ability to return to profitability while resolving regulatory matters will be crucial for its performance in the coming quarters.