D-Link (India) Limited announced its unaudited financial results for the quarter and nine months ended 31st December 2025, showcasing strong operational performance and continued growth momentum in the networking products segment.

Financial Performance Highlights

The company delivered impressive financial results for Q3FY26, with revenue from operations reaching ₹39,358.84 lakhs, representing a robust 19.4% year-over-year growth from ₹32,972.84 lakhs in Q3FY24. Net profit for the quarter stood at ₹2,654.42 lakhs, maintaining strong profitability levels compared to ₹2,622.32 lakhs in the corresponding quarter of the previous year.

EBITDA for Q3FY26 increased to ₹345 crores compared to ₹333 crores in the corresponding quarter of the previous year. However, EBITDA margin compressed to 8.74% from 10.00% year-over-year, indicating some pressure on operational efficiency despite absolute growth.

Nine-Month Performance

For the nine months ended 31st December 2025, D-Link India demonstrated consistent growth with revenue from operations of ₹1,11,689.58 lakhs compared to ₹1,00,903.25 lakhs in the corresponding period of the previous year, reflecting a 10.7% increase. Net profit for the nine-month period was ₹7,567.61 lakhs, slightly lower than ₹7,591.15 lakhs in the same period last year.

Dividend Declaration and Corporate Actions

The Board of Directors declared an interim dividend of ₹6 per equity share having face value of ₹2 each, representing 300% for the financial year 2025-26. This interim dividend was paid to eligible shareholders on 14th November 2025 during the quarter ended 31st December 2025.

Board Changes

Ms. Ching Chun Yang (DIN: 10671757) submitted her resignation from the position of Independent Director effective 5th February 2026. The resignation was attributed to increasing personal priorities and the need to focus on other professional commitments. Consequent to her resignation, she also ceased to be a member of the Board committees.

Regulatory and Compliance Matters

The company received a demand order from the Commissioner of Customs (Adjudication), Mumbai on 19th January 2026, regarding royalty payments made to parent company D-Link Corporation, Taiwan. The total amount demanded is ₹611.49 lakhs (inclusive of differential duty, fines, and penalties, but excluding interest). The company had previously made voluntary ad-hoc payments of ₹100.00 lakhs during the investigation, which have been appropriated towards the demand. D-Link India is currently evaluating the merits of the order and considering filing an appeal before CESTAT.

Impact of New Labour Codes

Following the implementation of New Labour Codes effective from 21st November 2025, the company recognized incremental estimated obligations aggregating to ₹192.41 lakhs under "Employee Benefits Expense" for the quarter and nine months ended 31st December 2025. This includes ₹182.15 lakhs for gratuity and ₹10.26 lakhs for leave encashment, primarily relating to past service costs arising from the new regulations.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 5th February 2026, with statutory auditors expressing an unmodified review conclusion.

D-Link (India) Limited has informed stock exchanges about receiving a customs adjudication order that demands ₹6.11 crores for alleged violations related to royalty payments and customs duty calculations. The disclosure was made under Regulation 30 of SEBI listing regulations on January 20, 2026.

Customs Authority Action

The Office of the Commissioner of Customs (Adjudication), Mumbai issued the order on January 16, 2026, which the company received via email on January 19, 2026. The adjudication order addresses alleged violations concerning the failure to include royalty payments made to the parent company in the assessable value, resulting in short payment of customs duty.

Nature of Alleged Violations

The adjudicating authority determined that royalty payments made by D-Link India to D-Link Corporation should be included in the assessable value of certain imported licensed products. The order alleges that the company excluded these royalties from the transaction value, thereby violating Section 14 of the Customs Act, 1962, read with Rule 10(1)(c) of the Customs Valuation Rules, 2007.

Financial Impact and Demand Details

The customs demand and company's response present the following financial picture:

During the investigation process, D-Link India made an ad-hoc voluntary payment of ₹1 crore, which has been allowed for appropriation against the total demand.

Company's Position

D-Link India has stated that there is no material impact on the company's operations, financial position, or other activities, except for the specific matter detailed in the customs order. The company has fulfilled its regulatory disclosure obligations by informing both BSE and NSE about the adjudication order as required under SEBI listing regulations.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Shrinivas Adikesar signed the regulatory filing, ensuring compliance with stock exchange notification requirements.