Gujarat craft industries Limited has announced its unaudited financial results for the quarter ended December 31, 2025, marking the third quarter of fiscal year 2026. The plastic packaging material manufacturer's Board of Directors approved these results in their meeting held on February 12, 2026.

Financial Performance Overview

The company's quarterly performance showed mixed results with revenue declining year-over-year while facing significant exceptional charges. The financial metrics demonstrate the impact of regulatory changes on the company's bottom line.

Impact of New Labour Codes

A significant factor affecting the quarter's profitability was the implementation of new labour regulations. The Government of India consolidated multiple existing labour regulations into a unified framework comprising four labour codes on November 21, 2025. Gujarat Craft Industries recognized an exceptional item of ₹52.24 lakh during the quarter, primarily arising from changes in wage definition under the new labour codes.

The company's profit before exceptional items and tax stood at ₹58.34 lakh, but after accounting for the exceptional item, profit before tax reduced to ₹6.10 lakh. This regulatory impact was treated as a non-recurring exceptional item due to its legislative nature.

Nine-Month Performance

For the nine-month period ended December 31, 2025, Gujarat Craft Industries showed improved revenue performance compared to the previous year:

Operational Metrics

The company maintained its paid-up equity share capital at ₹488.83 lakh with a face value of ₹10 per share. Other comprehensive income for the quarter was ₹5.96 lakh, primarily due to re-measurement of defined benefit plans. The total comprehensive income for Q3FY26 was ₹11.14 lakh compared to ₹76.99 lakh in Q3FY25.

Business Segment and Compliance

Gujarat Craft Industries operates exclusively in the plastic packaging material segment, making segment reporting under Ind AS 108 not applicable. The company maintains ISO-9001 certification and operates from its head office and works in Santej, Gandhinagar, Gujarat, along with an office in Ahmedabad. The financial results were prepared in accordance with Indian Accounting Standards and approved by the Audit Committee before Board approval.

Gujarat Craft Industries Ltd has disclosed the execution of an addendum to its Shareholder Voting Authorization Agreement under Regulation 30 of SEBI (LODR) Regulations, 2015. The addendum was executed on 29th January, 2026, modifying the original agreement dated 22nd November, 2025.

Agreement Parties and Structure

The addendum involves key promoters of the company who are parties to the original shareholder voting agreement. The agreement structure includes specific shareholding patterns and party designations.

Purpose and Scope of Amendment

The addendum serves to strengthen the original agreement by incorporating additional protections and formally including the company as a party. The modification addresses specific banking relationship requirements and enhances the agreement's comprehensive coverage.

The primary purpose of the addendum is to include and amend clauses relating to protection of lender bank SBI's rights. Additionally, the amendment formally adds Gujarat Craft Industries Limited as a party to the original agreement in the capacity of a confirming party, which was not the case in the initial agreement structure.

Regulatory Compliance and Disclosure

The company has fulfilled its disclosure obligations under SEBI regulations by providing comprehensive details of the agreement modification. The disclosure follows the prescribed format under Regulation 30(3) read with Clause 5 of Para B of Part A of Schedule III of SEBI (LODR) Regulations, 2015.

Corporate Governance Impact

The addendum represents a structured approach to shareholder agreements within the promoter group while ensuring compliance with regulatory requirements. Both parties to the agreement are promoters of the company, maintaining the internal nature of the voting authorization arrangement.

The modification does not create any special rights such as director appointment rights, first right to share subscription, or rights to restrict capital structure changes. The agreement remains focused on its core purpose of shareholder voting coordination while now providing additional protections for the lender bank's interests.