Dhatre Udyog Limited announced its unaudited standalone and consolidated financial results for the third quarter ended December 31, 2025, revealing significant operational challenges with zero revenue from operations and a net loss of ₹32.35 lakhs.

Financial Performance Overview

The company's financial performance showed a marked deterioration compared to the previous year. The following table summarizes the key financial metrics:

Nine-Month Performance Analysis

The nine-month period from April to December 2025 also reflected challenging operational conditions:

Expense Structure and Cost Management

During Q3 FY26, the company's expense structure reflected minimal operational activity. Employee benefit expenses were ₹15.96 lakhs, while other expenses totaled ₹129.25 lakhs. The company recorded no cost of materials consumed or purchase of traded goods during the quarter.

Tax Position and Comprehensive Income

The company reported a net tax benefit of ₹41.43 lakhs in Q3 FY26, primarily due to deferred tax adjustments of ₹61.11 lakhs. Other comprehensive income was positive at ₹14.04 lakhs, resulting in a total comprehensive loss of ₹18.31 lakhs for the quarter.

Capital Structure

The company maintained a stable capital structure with paid-up equity share capital of ₹1,089.55 lakhs, consisting of shares with a face value of Re. 1 each. Basic and diluted earnings per share for Q3 FY26 stood at (₹0.03) compared to ₹0.04 in the corresponding quarter of the previous year.

Board Approval and Audit Review

The Board of Directors approved these financial results in their meeting held on February 13, 2026, at the company's registered office in Kolkata. The meeting commenced at 1:00 PM and concluded at 2:00 PM. The results were subject to limited review by statutory auditors M/s. P. D. Rungta & Co., Chartered Accountants, who expressed a qualified opinion on the financial statements.

Operational Context

The company's financial performance reflects its strategic decision to shut down manufacturing operations due to plant obsolescence and technology challenges. The Board had previously decided to explore asset monetization opportunities, including the sale or lease of manufacturing facilities at Vizianagaram, as part of its business restructuring initiatives.

Dhatre Udyog Limited (formerly Narayani Steels Limited) has reported a net loss of Rs. 97.27 lakhs for the quarter ended September 30, 2025, marking a significant downturn from the profit of Rs. 122.90 lakhs recorded in the same period last year. This financial performance comes amid major operational changes for the company.

Operational Transition

The company has made a strategic decision to shut down its manufacturing operations, citing aging plant infrastructure and outdated machinery as key factors. This move is part of a broader restructuring effort aimed at improving the company's financial position and exploring new business opportunities.

Asset Disposal and Future Plans

As part of its restructuring, Dhatre Udyog has been disposing of its old assets, including plant and machinery, as scrap. The company is now shifting its focus towards real estate development, particularly eyeing opportunities at its Kakinada land.

Financial Highlights

The financial results for Q2 FY26 reflect the impact of these operational changes:

Balance Sheet Overview

As of September 30, 2025, Dhatre Udyog's financial position shows:

• Total Assets: Rs. 5,984.31 lakhs
• Total Equity: Rs. 5,769.13 lakhs
• Current Liabilities: Rs. 215.19 lakhs

Auditor's Observations

The company's auditors, P.D. Rungta & Co., have expressed a qualified conclusion in their review report. They noted that balances under Trade receivables, Advances, and Trade Payables are subject to confirmations and adjustments, which could potentially impact the financial statements.

Management Commentary

While specific management comments were not provided in the available data, the company's decision to pivot towards real estate development suggests a strategic shift in response to challenges in its traditional steel manufacturing business.

Looking Ahead

Dhatre Udyog's transition from steel manufacturing to real estate development represents a significant change in its business model. The company's performance in the coming quarters will likely depend on its ability to successfully monetize its land assets and establish itself in the real estate sector.

Investors and stakeholders will be watching closely to see how this strategic shift impacts the company's financial performance and long-term prospects in the evolving business landscape.