Dai-ichi Karkaria Limited has released its unaudited financial results for Q3 FY26 ended December 31, 2025, revealing a challenging operational environment that impacted the specialty chemicals manufacturer's quarterly performance. The company faced mixed demand conditions across its end markets, with softer realizations and uneven demand affecting overall results.

Financial Performance Overview

The company's financial metrics for Q3 FY26 demonstrated the impact of market headwinds on operational performance:

Revenue from operations declined to ₹3,781 lakhs in Q3 FY26 from ₹4,279 lakhs in the previous quarter, marking an 11.6% sequential decrease. Year-over-year comparison showed a 7.1% decline from ₹4,071 lakhs in Q3 FY25.

Operational Challenges and Market Dynamics

The company's management highlighted several factors that influenced quarterly performance. Sales during the period were significantly impacted by the temporary loss of an oilfield chemical tender, which affected both volumes and revenues for the quarter. However, management noted that they remained actively engaged with the customer and expected to regain the business in subsequent quarters.

Despite challenging conditions, the company continued to sustain customer engagement across domestic and international markets. Sales efforts remained focused on maintaining continuity across key accounts and improving order visibility in an uncertain demand environment.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the company showed improved performance compared to the corresponding period last year:

Capacity Expansion and Strategic Initiatives

From an operational standpoint, the company's alkoxylation capacity operated close to full capacity during the period. Management confirmed that the new ethoxylation reactor remains on track for commissioning in the fourth quarter of FY26, which is expected to substantially increase alkoxylation capacity.

The company has been actively engaging with existing and prospective customers to align requirements in anticipation of this expanded capacity. R&D activities remained focused on improving formulations and supporting customer-specific requirements across various industry segments.

Management Outlook

Management emphasized their continued focus on strengthening the quality of revenues, sustaining customer relationships, and maintaining disciplined capacity deployment. The company's efforts in product development and application support involved working closely with customers to address evolving requirements across industry segments.

These strategic initiatives, alongside ongoing sales engagement, are aimed at strengthening customer relationships and supporting incremental opportunities over time. The company remains committed to disciplined execution and responsible management of the business while navigating the current challenging market environment.

Dai-ichi Karkaria Limited announced key leadership decisions following a Board of Directors meeting held on February 6, 2026. The board, acting on recommendations from the Nomination and Remuneration Committee, approved significant changes to the company's executive structure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Leadership Re-appointment and Restructuring

The board approved the re-appointment of Ms. Meher Vakil Taff (DIN: 07778396) as Managing Director for a three-year term commencing April 1, 2026, and concluding March 31, 2029. This re-appointment is subject to approval from the company's shareholders.

Executive Profile and Qualifications

Ms. Meher Vakil Taff, 40 years old, brings substantial experience to her expanded role. She has been associated with Dai-ichi Karkaria for the past 10 years and has been closely involved in the company's strategic development and growth initiatives during this period.

Her educational background includes a Bachelor of Arts in Economics and Business Institutions from Northwestern University, Illinois, USA. She possesses strong expertise in Marketing and Business Development, complemented by a comprehensive understanding of business operations and stakeholder management.

Professional Contributions and Experience

Ms. Vakil Taff has demonstrated significant contributions to improving organizational efficiency, execution discipline, and coordination across multiple key functions:

• Marketing and Sales operations
• Information Technology initiatives
• Finance management
• Human Resources development
• Production oversight

She has been actively involved in designing and implementing business strategies, operating frameworks, and internal policies that strengthen performance while reinforcing organizational culture and supporting sustainable growth. Her professional experience includes collaboration with multiple New York-based companies on initiatives related to Marketing and Sales strategy, Business Operations, and Technology-driven innovation, bringing valuable international perspective and best practices to the company.

Board Decisions and Corporate Governance

The board also acknowledged Mrs. Shernaz Vakil's (DIN: 00002519) decision to forgo her Annual increment and Performance-linked incentive for Financial Year 2026-2027. Mrs. Vakil serves as Chairperson and Whole-time Director of the company.

Regulatory Compliance

The company confirmed that Ms. Meher Vakil Taff is not debarred from holding the office of Director by virtue of any order of the Securities and Exchange Board of India or any other regulatory authority. The disclosure was made pursuant to Regulation 30 read with Part A of Schedule III to the SEBI Listing Regulations, ensuring full compliance with regulatory requirements for director appointments and corporate governance standards.