Duncan Engineering Limited announced its unaudited financial results for the third quarter of FY26 ended December 31, 2025, presenting a mixed performance with year-over-year profit growth offset by sequential decline and revenue challenges.

Financial Performance Overview

The company's quarterly results showed contrasting trends across different metrics and timeframes:

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, revealed more pronounced challenges in the company's operational performance:

Cost Structure and Operational Metrics

The company's expense management showed varying trends across different cost components. Cost of materials consumed decreased to ₹951.01 crores in Q3FY26 from ₹1,054.65 crores in Q3FY25, representing a 9.8% reduction. Employee benefits expense remained relatively stable at ₹511.99 crores compared to ₹510.28 crores in the previous year quarter. Other expenses increased to ₹322.41 crores from ₹263.23 crores, marking a 22.5% rise year-over-year.

Corporate Developments

During the quarter, Duncan Engineering incorporated a wholly owned overseas subsidiary in the Kingdom of Saudi Arabia. As of the reporting date, the subsidiary had not commenced operations and no capital had been infused. The subsidiary did not have any assets, liabilities, income, or expenses, and therefore did not contribute to the company's financial performance for the period under review.

Tax and Comprehensive Income

The company's tax expense for Q3FY26 was ₹33.93 crores, higher than ₹24.89 crores in Q3FY25. Total comprehensive income, which includes other comprehensive income components, stood at ₹108.54 crores for the quarter compared to ₹70.67 crores in the corresponding previous year quarter.

Capital Structure

The company maintained a stable capital structure with paid-up equity share capital remaining unchanged at ₹369.60 crores, consisting of shares with a face value of ₹10 each. Other equity reserves stood at ₹5,315.22 crores as of March 31, 2025.

The Board of Directors approved these unaudited financial results in their meeting held on January 22, 2026, after review and recommendation by the audit committee. The statutory auditors S S Kothari Mehta & Company LLP issued a limited review report with unmodified opinion on the results.

Duncan Engineering Limited has secured approved vendor status with Engineers India Limited (EIL), a Government of India undertaking, positioning the company to participate in government tenders for its manufactured products.

Vendor Enlistment Details

Duncan Engineering announced that it has been enlisted as an approved vendor with Engineers India Limited for supply of certain products manufactured by the company. This strategic development opens new avenues for business growth through government sector participation.

Business Impact and Opportunities

The enlistment enables Duncan Engineering to participate in tenders and enquiries issued by EIL for the approved product categories. This vendor status represents a significant milestone for the company, as it provides access to government sector opportunities through one of India's leading engineering consultancy organizations.

Engineers India Limited, being a Government of India undertaking, offers substantial business potential for approved vendors. The company's inclusion in EIL's vendor list validates its manufacturing capabilities and quality standards, meeting the requirements of government sector procurement.

Regulatory Compliance

Duncan Engineering has disclosed this development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was made through proper regulatory channels, demonstrating the company's commitment to transparency and regulatory adherence.

This vendor enlistment represents a strategic achievement for Duncan Engineering, potentially expanding its market reach and creating new revenue opportunities through government sector engagement.