Axel Polymers Reports Q3FY26 Results with Reduced Loss Despite Revenue Decline
Axel Polymers Limited reported Q3FY26 results showing a net loss of ₹62.05 lacs, an improvement from ₹75.58 lacs loss in Q3FY25, despite revenue declining 20.28% to ₹885.69 lacs. The nine-month performance showed significant improvement with losses reducing to ₹56.95 lacs from ₹209.17 lacs in the previous year. However, the company faces regulatory challenges with a GST show cause notice proposing ITC reversal of approximately ₹31.57 crore related to alleged irregularities during FY2021-22 to FY2024-25.
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Axel Polymers Limited announced its unaudited financial results for the third quarter ended December 31, 2025, showing mixed performance with reduced losses despite declining revenue. The Board of Directors approved these results in their meeting held on February 13, 2026, following review and recommendation by the Audit Committee.
Financial Performance Overview
The company's financial performance for Q3FY26 showed improvement in loss reduction compared to the previous year, though revenue declined significantly.
| Metric | Q3FY26 | Q3FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹885.69 lacs | ₹1,111.09 lacs | -20.28% |
| Total Revenue | ₹888.72 lacs | ₹1,112.00 lacs | -20.08% |
| Net Loss | ₹62.05 lacs | ₹75.58 lacs | +17.90% |
| Basic & Diluted EPS | ₹-0.06 | ₹-0.89 | +93.26% |
Nine-Month Performance Analysis
For the nine-month period ended December 31, 2025, Axel Polymers demonstrated significant improvement in operational performance compared to the corresponding period in the previous year.
| Parameter | 9M FY26 | 9M FY25 | Variance |
|---|---|---|---|
| Revenue from Operations | ₹3,127.54 lacs | ₹6,722.49 lacs | -53.47% |
| Net Loss | ₹56.95 lacs | ₹209.17 lacs | +72.78% |
| Total Comprehensive Loss | ₹54.66 lacs | ₹208.84 lacs | +73.82% |
Cost Structure and Operational Metrics
The company's cost management showed mixed results during Q3FY26. Cost of material consumed decreased to ₹645.35 lacs from ₹888.56 lacs in Q3FY25, representing a 27.38% reduction. Employee benefits expense increased to ₹101.99 lacs from ₹95.03 lacs, while finance costs decreased marginally to ₹77.30 lacs from ₹80.86 lacs in the corresponding quarter last year.
Regulatory Challenges
The company faces significant regulatory scrutiny from GST authorities. Following search proceedings conducted at the factory premises on July 3, 2024, the Commissioner of Central GST & Central Excise, Vadodara II, issued a show cause notice to Axel Polymers Limited. The notice pertains to alleged irregularities in Input Tax Credit (ITC) availment and passing through issuance and receipt of invoices without actual movement of goods during FY2021-22 to FY2024-25. The authorities propose ITC reversal of approximately ₹31.57 crore, along with recovery of interest and penalty.
Capital Structure Updates
The company's paid-up equity share capital increased to ₹1,101.11 lacs as of December 31, 2025, compared to ₹851.67 lacs in the previous year, indicating a capital expansion during the period. This increase in share capital contributed to the improved earnings per share performance despite the operational losses.
Compliance and Governance
The unaudited financial results were prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013. The results have been posted on the company's website and stock exchange platforms as required under Regulation 33 of SEBI (LODR) Regulations, 2015. The company operates in a single business segment, focusing on polymer-related activities.
Historical Stock Returns for Axel Polymers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -100.00% | -100.00% | -100.00% | -100.00% | -100.00% | -100.00% |
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