Chandni Machines Limited has announced its unaudited financial results for the quarter ended December 31, 2025, demonstrating a strong recovery in operational performance. The engineering goods trading company reported significant improvements across key financial metrics, marking a notable turnaround from the previous quarter's challenges.

Financial Performance Overview

The company's quarterly performance showed remarkable improvement with total income from operations reaching ₹240.86 lakhs, representing a substantial recovery from the negative ₹11.59 lakhs reported in the previous quarter (Q2FY26). This positive momentum reflects the company's operational resilience and market positioning.

Profitability Analysis

The company achieved net profit before tax of ₹182.57 lakhs for Q3FY26, compared to a loss of ₹79.85 lakhs in the previous quarter. Net profit after tax stood at ₹185.07 lakhs, marking a dramatic improvement from the loss of ₹106.34 lakhs in Q2FY26. Total comprehensive income for the period reached ₹185.07 lakhs, reflecting the company's strong operational performance.

Nine-Month Performance

For the nine months ended December 31, 2025, Chandni Machines reported total income from operations of ₹2,931.61 lakhs compared to ₹15,046.10 lakhs in the corresponding period of the previous year. Net profit after tax for the nine-month period was ₹188.30 lakhs, showing improvement from ₹127.24 lakhs in the previous year.

Earnings Per Share and Capital Structure

The company maintained its equity share capital at ₹322.74 lakhs throughout the reporting periods. Basic and diluted earnings per share for Q3FY26 were ₹5.73, compared to negative ₹3.30 in the previous quarter and ₹0.11 in Q3FY25. For the nine-month period, earnings per share stood at ₹5.83 compared to ₹3.94 in the previous year.

Corporate Governance and Compliance

The financial results were reviewed and recommended by the Audit Committee and subsequently approved by the Board of Directors at their meeting held on February 13, 2026. The results have been prepared in accordance with Indian Accounting Standards (IndAS) and comply with SEBI regulations. As a company primarily engaged in trading engineering goods and related items, the business operates as a single reportable segment under IndAS 108.

Chandni machines Limited has successfully completed a preferential allotment of equity shares and convertible warrants, as announced by the company's Board of Directors on January 30, 2026. The allotment represents a significant capital raising exercise for the Mumbai-based industrial machinery manufacturer.

Allotment Details

The Board approved the allotment of securities at an issue price of Rs. 52.50 per share, including a premium of Rs. 42.50 over the face value of Rs. 10.00. The allotment comprises two distinct categories of securities issued on a preferential basis to selected investors.

Warrant Structure and Payment Terms

The 40,00,000 fully convertible warrants carry specific conversion terms and payment obligations. Each warrant is convertible into one fully paid-up equity share of face value Rs. 10.00 at the option of the allottee within a maximum period of 18 months from the allotment date.

The company has received 25% of the warrant issue price upfront, amounting to Rs. 13.125 per warrant. This translates to total upfront collections of Rs. 5,25,00,000 from warrant subscribers. Jayesh R. Mehta has been allotted all 40,00,000 warrants as the sole warrant investor.

Cancelled Allotments

The Board decided to cancel the issuance of 3,73,100 equity shares due to non-receipt of allotment money by the due date. This cancellation affects multiple investors across two categories:

Complete Cancellations:

• 7 investors with total cancelled shares: 2,62,000
• Notable cancellations include Vaishaliben Mehulkumar Panchal (1,00,000 shares)

Partial Cancellations:

• 4 investors with partial allotments due to incomplete payments
• Bhanumati Premji Mirani: Applied for 1,00,000, allotted 7,600, cancelled 92,400

Shareholding Pattern Impact

The preferential allotment will significantly alter the company's shareholding structure. On a fully diluted basis, assuming complete conversion of all warrants, the total share count will increase from 32,27,433 to 1,10,38,333 shares.

The preferential allotment involved 75 equity share investors with varying investment amounts. The largest equity allocation went to Bhavika Dhirajlal Chavada with 6,30,000 shares worth Rs. 3,30,75,000, followed by Umashankar Lath with 2,00,000 shares valued at Rs. 1,05,00,000.

Regulatory Compliance

The allotment was conducted in accordance with SEBI (ICDR) Regulations, 2018, and the company has fulfilled all disclosure requirements under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. All payments were made in cash, and the company has taken necessary actions regarding cancelled allotments in compliance with the Companies Act, 2013.