ATAM VALVES LIMITED announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showing a significant decline in performance compared to the previous year. The valve manufacturing company reported a net loss in the third quarter, marking a sharp reversal from the profitable performance in the corresponding quarter of the previous fiscal year.

Financial Performance Overview

The company's financial metrics demonstrate a challenging quarter with substantial year-on-year declines across key parameters:

Quarterly Results Analysis

ATAM VALVES faced significant operational challenges during Q3 FY26. Revenue from operations declined to ₹1,041.16 lakhs from ₹1,738.17 lakhs in Q3 FY25, representing a substantial 40.09% decrease. Total expenses amounted to ₹1,116.72 lakhs compared to ₹1,528.99 lakhs in the previous year quarter. Despite lower absolute expenses, the company reported a loss before tax of ₹75.03 lakhs against a profit before tax of ₹212.62 lakhs in Q3 FY25.

The cost structure showed mixed trends with cost of materials consumed at ₹777.52 lakhs versus ₹1,192.57 lakhs in the previous year. Employee benefits expense decreased to ₹178.83 lakhs from ₹214.37 lakhs, while finance costs remained relatively stable at ₹25.45 lakhs compared to ₹25.75 lakhs.

Nine-Month Performance

For the nine months ended December 31, 2025, the company's performance also reflected the challenging business environment:

Board Meeting and Compliance

The Board of Directors of ATAM VALVES LIMITED convened on February 13, 2026, from 1:00 PM to 2:00 PM to consider and approve the unaudited financial results. The meeting also approved the Statutory Auditor's Limited Review Report for the quarter and nine months ended December 31, 2025. The results were prepared in accordance with Indian Accounting Standards (Ind AS) and comply with SEBI Listing Regulations.

Company Profile

ATAM VALVES LIMITED, formerly ATAM VALVES PVT. LTD., operates as a single-segment company engaged in manufacturing valves, fittings, steam traps, and strainers. The company maintains its registered office at 1051, Industrial Area, Jalandhar, Punjab-144004, and has a paid-up equity share capital of ₹1,146.30 lakhs with a face value of ₹10 per share.

Atam Valves Limited has announced a significant milestone in its journey towards global manufacturing excellence. The company has successfully completed the first audit stage (Q1 Certification) conducted by the American Petroleum Institute (API), a globally recognized benchmark for quality in the oil, gas, and process industries.

Key Developments

API Certification Progress

• Successfully cleared the Q1 Certification audit
• Addressing final procedural observations
• Expected conclusion within 6-8 weeks
• Anticipates formal API certification by February 2026

Business Expansion Plans

• Plans to manufacture valves up to 72 inches in diameter
• Current capacity limited to 12-inch valves
• Aims to serve more complex, high-pressure sectors

Impact on Revenue

The company expects to see potential benefits from this certification:

• Possibility of unlocking new revenue streams from API-related business
• Meaningful traction anticipated by the end of FY27
• May coincide with capacity ramp-up and conversion of trials to orders

Strategic Implications

The API certification represents a critical step for Atam Valves in potentially strengthening its position in the global market. By expanding its manufacturing capabilities to include larger valves, the company aims to position itself to capture high-value opportunities in sectors such as oil & gas, petrochemicals, and large-scale infrastructure projects.

Investor Considerations

For investors and market watchers, this news signals potential for future growth and market expansion for Atam Valves. The API certification, once finalized, could open doors to new markets and customers, particularly in industries that require high-quality, certified valve products.

As the company progresses through the final stages of certification and begins its planned expansion, investors may want to monitor:

1. The official confirmation of API certification
2. Progress on expanding manufacturing capabilities
3. New contracts or orders resulting from the certification
4. Financial impact in FY27 and beyond

This development positions Atam Valves to potentially enhance its competitive edge in the global valve manufacturing market, subject to successful completion of the certification process and execution of its expansion plans.