Chembond Material Technologies Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showing mixed performance with revenue growth offset by declining profitability due to exceptional charges.

Financial Performance Overview

The company's consolidated results revealed contrasting trends in revenue and profitability metrics. While the top line demonstrated robust growth, bottom line performance was significantly impacted by one-time charges related to regulatory changes.

Exceptional Items Impact

The quarter's profitability was significantly affected by exceptional charges totaling ₹179.61 crores. This substantial impact stemmed from incremental gratuity expenses following the notification of new Labour Codes effective from November 21, 2025. The company assessed and accounted for this regulatory change as an exceptional item, which substantially reduced the quarter's net profit.

Without these exceptional charges, the company's profit before exceptional items and tax stood at ₹476.09 crores, representing a 53.4% increase from ₹310.33 crores in the corresponding quarter of the previous year.

Nine-Month Performance

The nine-month period ending December 31, 2025, showed similar trends with revenue growth accompanied by profit decline due to exceptional items.

Segment-wise Performance

The company operates through two primary business segments, both contributing to the overall revenue growth during the quarter.

The Animal Health segment showed particularly strong performance with significantly improved profitability compared to the previous year, while the Specialty Chemicals segment maintained steady performance levels.

Board Meeting and Regulatory Compliance

The results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on January 16, 2026. The Board meeting commenced at 11:00 a.m. and concluded at 17:15 p.m. The company also noted the grant of Stock Options by the Nomination & Remuneration Committee.

In compliance with insider trading regulations, the trading window for Directors, Officers, Designated persons and their immediate relatives will remain closed till 48 hours post the outcome of Board meeting, i.e., till Sunday, January 18, 2026.

Operational Metrics

The company's operational efficiency remained robust despite the challenging quarter. Total expenses increased to ₹5,968.96 crores from ₹5,013.70 crores in Q3FY25, primarily driven by higher material costs of ₹3,738.10 crores and increased employee benefit expenses of ₹982.54 crores. Other income surged to ₹155.54 crores from ₹19.41 crores in the corresponding quarter last year.

The company maintained its paid-up equity share capital at ₹672.41 crores with a face value of ₹5 per share. The financial results have been subjected to limited review by statutory auditors M/s. Kastury & Talati, Chartered Accountants.

Chembond Material Technologies Limited has granted 34,238 stock options to eligible employees under its Employee Stock Option Plan 2025, as approved by the company's Nomination and Remuneration Committee on January 16, 2026. The grant represents a significant employee incentive initiative aimed at aligning workforce interests with company performance.

Stock Option Grant Details

The comprehensive grant encompasses 34,238 stock options distributed across eligible employees of the company and its subsidiary. Each option provides the right to convert into one fully paid-up equity share with a face value of ₹5.00.

Vesting and Exercise Framework

The Employee Stock Option Plan 2025 incorporates a structured vesting mechanism designed to ensure long-term employee commitment. Options granted under the scheme will vest within a maximum period of five years from the grant date, with regulatory compliance requiring a minimum gap of one year between grant and vesting dates.

The scheme operates in full compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, ensuring adherence to regulatory frameworks governing employee stock option plans in India.

Regulatory Compliance and Disclosure

Chembond Material Technologies Limited has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company submitted comprehensive details to both BSE Limited and National Stock Exchange of India Limited, maintaining transparency in corporate governance practices.

The notification includes detailed annexures providing complete information required under SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, demonstrating the company's commitment to regulatory compliance and stakeholder transparency.

Employee Incentive Strategy

The stock option grant represents part of Chembond Material Technologies Limited's broader employee retention and motivation strategy. By providing equity participation opportunities, the company aims to create long-term value alignment between employee performance and organizational success, fostering a culture of ownership and accountability across its workforce and subsidiary operations.