News Earnings Banaras Beads Limited Reports 15.88% Growth in Q3FY26 Net Profit Despite US Market ChallengesBanaras Beads Limited Reports 15.88% Growth in Q3FY26 Net Profit Despite US Market Challenges
Banaras Beads Limited reported Q3FY26 net profit of Rs 57.90 lakh, up 15.88% YoY, with revenue from operations growing 34.67% to Rs 772.48 lakh. Nine-month performance showed challenges with revenue declining 22.11% to Rs 1897.86 lakh and net profit falling 49.54% to Rs 122.53 lakh. The company faces headwinds from US market tariff issues, with buyers holding orders though none cancelled, while negotiations continue with US-based customers.
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Banaras Beads Limited announced its unaudited financial results for the quarter ended December 31, 2025, demonstrating resilient performance amid challenging market conditions. The Varanasi-based manufacturer and exporter of beads, handicrafts, and fashion jewelry reported improved quarterly profitability despite facing headwinds in its key US market.
Quarterly Financial Performance
The company delivered strong quarterly results with net profit rising 15.88% year-on-year. Revenue from operations also showed robust growth, increasing by over one-third compared to the same quarter in the previous year.
| Financial Metric | Q3FY26 | Q3FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations | Rs 772.48 lakh | Rs 573.60 lakh | +34.67% |
| Total Income | Rs 815.18 lakh | Rs 620.39 lakh | +31.41% |
| Net Profit | Rs 57.90 lakh | Rs 49.97 lakh | +15.88% |
| Basic EPS | Rs 0.87 | Rs 0.75 | +16.00% |
Nine-Month Performance Analysis
While quarterly results showed positive momentum, the nine-month performance reflected market challenges. Revenue from operations for the nine months ended December 31, 2025, declined to Rs 1897.86 lakh from Rs 2436.61 lakh in the corresponding period of the previous year, representing a 22.11% decrease.
| Nine-Month Metrics | FY26 (9M) | FY25 (9M) | Change (%) |
|---|---|---|---|
| Revenue from Operations | Rs 1897.86 lakh | Rs 2436.61 lakh | -22.11% |
| Net Profit | Rs 122.53 lakh | Rs 242.82 lakh | -49.54% |
| Basic EPS | Rs 1.85 | Rs 3.66 | -49.45% |
Operational Highlights
The company's cost management initiatives showed positive results during the quarter. Cost of materials consumed decreased to Rs 266.01 lakh from Rs 232.07 lakh, while employee benefit expenses increased to Rs 153.92 lakh from Rs 126.44 lakh in Q3FY25. Finance costs rose to Rs 29.66 lakh compared to Rs 17.85 lakh in the previous year quarter.
Market Challenges and Outlook
Banaras Beads Limited highlighted specific challenges in its key export market. The company noted that US-based buyers have held orders due to increased tariffs imposed by the US Government. However, management emphasized that no orders have been cancelled by these buyers, and negotiations with US-based customers are ongoing.
Corporate Governance and Compliance
The financial results were reviewed by the audit committee and approved by the board of directors in a meeting held on January 29, 2026. The company's statutory auditors, G D Dubey & Associates, conducted a limited review of the results without any qualifications or adverse remarks. During the quarter, four complaints were received from shareholders, SEBI, and others, with no complaints remaining unresolved as of December 31, 2025.
Business Operations
The company operates as a recognized export house by the Government of India, specializing in manufacturing and exporting glass beads, handicrafts, and related items. All business activities fall under one segment, with main commercial operations based in Varanasi. The company maintains ISO certification and serves both domestic and international markets through its established distribution network.
Historical Stock Returns for Banaras Beads
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.60% | +1.61% | -13.26% | -5.87% | -17.01% | +84.64% |
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