Electrotherm (India) Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing a challenging performance with the company reporting a net loss of ₹35.50 crores for Q3 FY26 compared to a profit of ₹88.05 crores in the corresponding quarter of the previous year.

Financial Performance Overview

The company's revenue from operations declined significantly by 16.42% to ₹903.79 crores in Q3 FY26 from ₹1,081.23 crores in Q3 FY25. Total income for the quarter stood at ₹904.17 crores compared to ₹1,083.96 crores in the previous year.

Nine Months Performance

For the nine months ended December 31, 2025, the company reported a net loss of ₹29.54 crores compared to a profit of ₹243.15 crores in the corresponding period of FY25. Revenue from operations for the nine-month period decreased to ₹2,552.10 crores from ₹2,954.29 crores, representing a decline of 13.62%.

Segment-wise Performance

The consolidated results revealed varied performance across business segments. The Engineering & Technologies Division reported revenue of ₹287.31 crores for Q3 FY26 compared to ₹330.23 crores in Q3 FY25. The Special Steel Division, the largest segment, generated revenue of ₹613.28 crores versus ₹750.52 crores in the previous year. The Electric Vehicle Division contributed ₹6.63 crores compared to ₹7.76 crores in Q3 FY25.

Board Decisions and Corporate Changes

The Board of Directors, in their meeting held on February 11, 2026, approved several key decisions:

• Internal Auditor Appointment: M/s. G. K. Choksi & Co., Chartered Accountants, Ahmedabad (Firm Registration Number: 101895W) has been appointed as Internal Auditor effective April 1, 2026, until March 31, 2027
• Cessation: M/s. N R P S & Associates LLP will cease as Internal Auditor after March 31, 2026, upon completion of their appointment term

Key Financial Challenges

The company continues to face significant financial challenges, including loan defaults and interest provisioning issues. During the nine months ended December 31, 2025, the company defaulted on quarterly installments totaling ₹16.00 crores and interest of ₹2.68 crores to Invent Assets Securitisation & Reconstruction Private Limited. The company has also received a GST demand order of ₹0.52 crore for FY 2018-19, against which an appeal has been filed.

Implementation of New Labour Codes

Pursuant to the implementation of New Labour Codes effective November 21, 2025, the company has provided an incremental impact of ₹9.35 crore on gratuity and compensated absences due to changes in wage definition. The company continues to monitor developments in Central/State Rules for appropriate accounting treatment.

Electrotherm (India) Limited has responded to a surveillance inquiry from BSE Limited regarding unusual trading activity in its shares. The company submitted its clarification on January 6, 2026, addressing concerns about a significant increase in trading volume across exchanges.

Company's Response to Volume Surge

In its official communication to BSE Surveillance, Electrotherm stated that it is not aware of any specific reasons for the significant increase in its share trading volume. The company characterized the volume surge as "purely market driven," indicating that no internal corporate developments or announcements have directly contributed to the increased trading activity.

Regulatory Compliance Commitment

Electrotherm reaffirmed its commitment to regulatory compliance in its response to the exchange. The company emphasized that it has consistently informed stock exchanges of all relevant events and information as required under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

Communication Details

The clarification was submitted by Company Secretary and Compliance Officer Fageshkumar R. Soni, who holds membership number F8218. The response was digitally signed and submitted on January 6, 2026, at 14:59:04 IST, demonstrating the company's prompt response to the exchange's inquiry.

Market Surveillance Context

The BSE surveillance inquiry, referenced as L/SURV/ONL/PV/APJ/2025-2026/843, was issued on January 6, 2026, seeking clarification on the unusual trading patterns. Such inquiries are routine procedures by stock exchanges to ensure market integrity and investigate any unusual price or volume movements that may require explanation from listed companies.

Electrotherm's response indicates transparency in its communication with regulators while acknowledging that market-driven factors beyond the company's direct control can influence trading volumes. The company has requested BSE to take its clarification on record, completing the regulatory requirement for responding to the surveillance inquiry.