Daikaffil chemicals India Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing mixed performance indicators amid operational challenges. The Board of Directors approved these results during their meeting held on February 10, 2026, with statutory auditors M/s N V C & Associates LLP providing an unmodified opinion on the financial statements.

Quarterly Financial Performance

The company's third quarter performance for FY26 showed continued losses, though with some improvement compared to the previous year. Revenue from operations declined substantially during the quarter, reflecting challenging market conditions.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the company reported total income of ₹1,141.63 lacs compared to ₹375.55 lacs in the corresponding period of the previous year. Despite higher revenue, the company recorded a net loss of ₹124.97 lacs for the nine-month period.

Expense Structure and Operational Metrics

The company's expense structure for Q3 FY26 totaled ₹184.72 lacs, with cost of materials consumed at ₹33.34 lacs and employee benefit expenses at ₹46.26 lacs. Other expenses constituted ₹84.40 lacs during the quarter. The company maintained minimal finance costs at ₹0.00 lacs for the quarter.

Corporate Developments

Daikaffil Chemicals incorporated a wholly-owned subsidiary, Mikusu Global Industries Limited, on August 22, 2025. The subsidiary commenced operations during the quarter, leading to the preparation of consolidated financial statements for the first time. The consolidated results showed a net loss of ₹37.50 lacs for Q3 FY26 and ₹128.75 lacs for the nine-month period.

Business Operations and Outlook

The company operates in the manufacturing of Optical Brightening Agents (OBA) and other chemicals, functioning within a single business segment. The paid-up equity share capital remains unchanged at ₹600.00 lacs with a face value of ₹10 per share. The financial results will be published in newspapers and made available on the company's website at www.daikaffil.com and BSE's website.

Daikaffil Chemicals India Limited , a manufacturer of OBA and other chemicals, has reported a widened net loss for the quarter ended September 30, 2025. The company's financial performance reflects challenges in the current market environment.

Financial Highlights

Daikaffil Chemicals reported a net loss of Rs 1.34 crore for the quarter ended September 30, 2025, compared to a loss of Rs 0.58 crore in the same period last year. This represents an increase in losses by 131.03% year-over-year.

Revenue and Operational Performance

The company's total income for Q2 FY2026 stood at Rs 6.05 crore, a substantial increase from Rs 0.09 crore in the corresponding quarter of the previous year. Revenue from operations contributed Rs 6.04 crore to the total income, indicating a resumption of operational activities compared to the same quarter last year when no operational revenue was recorded.

Expenses and Profitability

Despite the increase in revenue, Daikaffil Chemicals faced higher expenses during the quarter. Total expenses amounted to Rs 7.39 crore, significantly higher than the Rs 0.96 crore reported in Q2 FY2025. This increase in expenses outpaced the growth in revenue, leading to the widened loss for the quarter.

Balance Sheet Position

As of September 30, 2025, Daikaffil Chemicals reported total assets of Rs 15.40 crore, with current assets accounting for Rs 11.47 crore. The company's total equity stood at Rs 7.90 crore, while total liabilities were Rs 7.50 crore.

Corporate Development

In a significant corporate development, Daikaffil Chemicals incorporated a new subsidiary, Mikusu Global Industries Limited, in August 2025. However, as of September 30, 2025, the funding for this subsidiary had not been completed, and consequently, consolidated financial statements were not prepared for the period.

Auditor's Review

NV C & Associates LLP, the company's auditors, conducted a limited review of the standalone financial results for the quarter and half-year ended September 30, 2025. They issued an unmodified opinion, stating that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and SEBI regulations.

Investors and stakeholders should note that while Daikaffil Chemicals has shown a significant increase in revenue, the widened losses indicate ongoing challenges in profitability. The company's performance in the coming quarters will be crucial in determining its ability to improve its financial position and capitalize on the newly established subsidiary.