Cosmo First Limited announced its unaudited financial results for the quarter ended December 31, 2025, following a board meeting held on February 11, 2026. The company reported strong revenue growth with consolidated net profit of ₹29.50 crores for Q3FY26 compared to ₹29.56 crores in the corresponding quarter of the previous year, while nine-month consolidated net profit increased to ₹119.07 crores from ₹106.27 crores.

Consolidated Financial Performance

The company demonstrated robust operational performance with consolidated revenue from operations for Q3FY26 reaching ₹898.98 crores compared to ₹700.65 crores in Q3FY25, representing a significant 28.31% growth. For the nine-month period, consolidated revenue reached ₹2,618.04 crores against ₹2,149.24 crores in the previous year, marking a 21.82% increase.

Standalone Financial Results

On a standalone basis, the company reported revenue from operations of ₹820.15 crores for Q3FY26 compared to ₹678.66 crores in Q3FY25, representing a 20.85% increase. Standalone net profit for the quarter was ₹17.19 crores versus ₹22.44 crores in the previous year. For the nine-month period, standalone net profit reached ₹76.46 crores compared to ₹71.13 crores in the previous year.

Segment-wise Performance Analysis

The company's packaging films segment, its primary revenue driver, generated revenue of ₹848.49 crores in Q3FY26 compared to ₹668.79 crores in the previous year, showing strong growth of 26.87%. The speciality chemicals segment contributed ₹51.84 crores versus ₹44.43 crores, while the petcare segment recorded revenue of ₹14.96 crores compared to ₹9.85 crores in Q3FY25.

Key Corporate Developments

The financial results were reviewed by the Audit Committee and approved by the Board of Directors on February 11, 2026, with the board meeting conducted from 02:15 PM to 05:10 PM. During the quarter, Cosmo Films Inc., USA became a wholly owned direct subsidiary of the company, resulting in a gain of ₹6.05 crores in other income. The company also reported a one-time increase in employee benefit liability of ₹4.04 crores under the New Labour Codes that came into effect from November 21, 2025.

Regulatory Compliance Update

Following the board approval, Cosmo First Limited completed its regulatory obligations by publishing the unaudited financial results in Business Standard newspaper on February 12, 2026. The publication was made in both English and Hindi editions, ensuring compliance with Regulation 47 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Company Secretary and Compliance Officer Jyoti Dixit confirmed the completion of newspaper publication requirements through official communication to BSE and NSE.

Cosmo First Limited has initiated legal proceedings against the Gujarat state government, filing a writ petition before the Gujarat High Court to challenge what it considers inadequate incentive payments under the Gujarat Industrial Policy 2015. The company disclosed this material litigation through a regulatory filing dated January 22, 2026, in compliance with SEBI listing regulations.

Legal Challenge Details

The writ petition has been filed under Article 226 of the Constitution of India before the Hon'ble Gujarat High Court. The respondents in the case include the State of Gujarat, Industries and Mines Department, Gandhinagar and Industries Commissionerate, Gandhinagar. The core dispute centers on the company's claim that it has received lower incentives than entitled under the state's industrial policy framework.

Financial Claims and Implications

The financial stakes in this litigation are substantial for Cosmo First Limited. The company has provided detailed disclosure of the monetary aspects of its legal challenge:

The company is seeking a refund of balance tax incentive amounting to ₹58.34 crores up to March 2025, while the expected financial implications include additional incentive accrual of ₹33.53 crores. These figures represent the quantum of claims being pursued through the legal proceedings.

Regulatory Compliance

Cosmo First Limited has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates companies to inform stock exchanges about material litigation. The disclosure was made in accordance with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Policy Context

The Gujarat Industrial Policy 2015 was designed to promote industrial development in the state through various incentives and benefits. The current dispute suggests disagreement between the company and state authorities regarding the interpretation or application of incentive provisions under this policy framework. The outcome of this litigation could have implications for how industrial incentives are calculated and disbursed under the state policy.