GOCL Corporation Limited announced its unaudited consolidated financial results for the quarter and nine months ended December 31, 2025, showcasing robust financial performance driven by strategic divestments and operational improvements.

Financial Performance Overview

The company delivered strong consolidated results for Q3FY26, with net profit reaching Rs. 21,027.21 lakhs compared to Rs. 9,240.36 lakhs in the corresponding quarter of the previous year. The nine-month performance was particularly impressive, with net profit surging to Rs. 1,44,684.81 lakhs from Rs. 13,409.33 lakhs in the previous year.

Continuing Operations Performance

The company's continuing operations showed steady performance with revenue from operations of Rs. 181.82 lakhs for Q3FY26, compared to Rs. 459.24 lakhs in the previous year quarter. Profit from continuing operations stood at Rs. 16,364.77 lakhs for the quarter, significantly higher than Rs. 2,327.89 lakhs in Q3FY25.

Strategic Divestment Activities

A major highlight of the period was the successful divestment of IDL Explosives Limited. The company completed the sale of its entire equity shareholding in IDL to Apollo Defence Industries Private Limited for Rs. 10,700 lakhs, as per the Share Purchase Agreement dated May 2, 2025. The transaction was concluded on November 15, 2025, resulting in a substantial gain of Rs. 14,150.30 lakhs.

Segment Performance

The company operates through two main business segments:

Electronics Manufacturing Services: Generated revenue of Rs. 22.68 lakhs in Q3FY26 compared to Rs. 290.81 lakhs in the previous year quarter. For the nine-month period, this segment recorded revenue of Rs. 257.41 lakhs against Rs. 671.03 lakhs in the previous year.

Realty Segment: Showed improved performance with revenue of Rs. 159.54 lakhs in Q3FY26 versus Rs. 166.42 lakhs in Q3FY25. The nine-month revenue for this segment was Rs. 2,400.18 lakhs compared to Rs. 6,906.87 lakhs in the previous year.

Discontinued Operations Impact

Discontinued operations contributed significantly to the overall performance, generating profit after tax of Rs. 4,662.44 lakhs for Q3FY26 and Rs. 1,20,718.61 lakhs for the nine-month period. These operations primarily relate to the Energetics Division and IDL Explosives Limited, both classified as discontinued operations.

Balance Sheet Strength

The company maintained a strong balance sheet with total assets of Rs. 3,56,489.00 lakhs as of December 31, 2025, compared to Rs. 3,12,246.94 lakhs in the previous year. Total liabilities stood at Rs. 54,778.15 lakhs, significantly lower than Rs. 1,56,779.33 lakhs in the previous year, indicating improved financial position.

Future Outlook

The Board of Directors approved a 'Scheme of Merger by Absorption' of Hinduja National Power Corporation Limited with GOCL Corporation Limited on December 15, 2025. The scheme is subject to statutory and regulatory approvals, including sanction from the National Company Law Tribunal.

GOCL Corporation Limited's board of directors and audit committee have approved a comprehensive scheme of merger by absorption with Hinduja National Power Corporation Limited (HNPCL). The board meeting held on December 15, 2025, reviewed the valuation report and share exchange ratio, marking a significant strategic consolidation for the company.

Merger Structure and Share Exchange Details

The approved merger scheme involves the absorption of HNPCL into GOCL Corporation through a defined share exchange mechanism. The transaction represents a strategic move to consolidate operations within the Hinduja Group ecosystem.

Financial Performance Overview

The merger brings together entities with distinct financial profiles and business operations. HNPCL operates in power generation, transmission and supply, while GOCL focuses on Electronic Manufacturing Services and Realty business.

Strategic Rationale and Expected Benefits

The merger by absorption aims to achieve strategic restructuring, operational optimization, and alignment with long-term growth objectives. The consolidation is expected to enable focused management and enhanced shareholder value through several key advantages.

The combined entity will benefit from simplified corporate structure, reduced regulatory compliances, and enhanced economies of scale. The merger facilitates optimal utilization of existing resources, infrastructure, and surplus cash for expansion in the energy sector.

Shareholding Pattern Changes

Post-merger, GOCL's shareholding structure will undergo significant changes, with the total equity base expanding substantially to accommodate HNPCL shareholders.

The merger remains subject to shareholders' approval and other requisite regulatory clearances. The transaction is classified as a related party transaction conducted at arm's length basis.