Carnation Industries Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing increased losses amid ongoing strategic business expansion initiatives. The company's board meeting held on January 27, 2026, approved the financial statements following review by the audit committee.

Financial Performance Overview

The company's financial performance for Q3FY26 showed deterioration compared to the previous year, with losses widening across key metrics.

Nine-Month Performance Comparison

The nine-month period ending December 31, 2025, showed a significant reversal from the previous year's profitability.

Expense Analysis

The company's expense structure showed significant changes during Q3FY26, with notable increases in finance costs and employee benefit expenses.

Key expense components for Q3FY26:

• Employee benefit expense: ₹7.52 lakhs (vs ₹4.19 lakhs in Q3FY25)
• Finance costs: ₹30.55 lakhs (vs nil in Q3FY25)
• Other expenses: ₹13.72 lakhs (vs ₹17.57 lakhs in Q3FY25)
• Depreciation: ₹0.05 lakhs (vs ₹0.26 lakhs in Q3FY25)

Strategic Business Initiatives

Carnation Industries is actively pursuing strategic acquisitions to expand its business portfolio. The company entered into a Share Purchase Agreement to acquire 100% equity shares in Oniv Beverages Private Limited for a total consideration not exceeding ₹5.00 crores. The acquisition will be executed through equity share allotment within the current fiscal year, subject to necessary approvals.

Additionally, the company entered into a business purchase agreement with Integra Essentia Limited, paying an advance of ₹329.18 lakhs during the quarter.

Corporate Developments

The company received listing approval from Bombay Stock Exchange on March 26, 2025, with successful completion of the corporate action for crediting shares to shareholders' accounts. The weighted average paid-up equity share capital remained stable at ₹345.72 lakhs with a face value of ₹10 per share.

Key corporate highlights:

• No interim dividend recommended for the current period
• No investor complaints received during Q3FY26
• Unclaimed dividend of ₹1.42 lakhs pending transfer to IEPF
• Company has not commenced business operations except administrative functions

Carnation Industries Limited has announced that it received a favorable outcome from the Securities and Exchange Board of India (SEBI) regarding an adjudication order concerning its promoter and associated entities. The company disclosed this development to stock exchanges on December 20, 2025, under regulatory compliance requirements.

SEBI Adjudication Order Details

The SEBI Adjudication Order No. Order/AK/GN/2025-26/31848-31890 dated December 19, 2025, confirmed that no adverse findings, directions, or penalties have been imposed on the promoter, certain family members, and associated entities. The order represents the culmination of proceedings that arose from a Show Cause Notice (SCN) dated February 13, 2025.

Nature of the Case

The adjudication proceedings pertained to certain trading transactions in equity shares of another BSE-listed company. These transactions were undertaken by the promoter, certain family members, and other associated entities in their individual capacity, who were named as noticees in the matter.

The company emphasized that the trading activities in question involved shares of a different BSE-listed entity and were conducted by the individuals in their personal capacity rather than on behalf of Carnation Industries.

Business Impact Assessment

Carnation Industries has confirmed that there is no impact on the company's financial, operational, or other business activities following this regulatory development. The favorable adjudication order provides clarity on the matter and removes any regulatory uncertainty that may have existed during the proceedings.

Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in compliance with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The company has provided the requisite disclosures as mandated under these regulations.

The complete adjudication order is accessible on the SEBI website, ensuring transparency and public availability of the regulatory decision. This favorable outcome provides regulatory clarity for Carnation Industries and its stakeholders regarding the concluded proceedings.