Indo Borax & Chemicals has announced its Q3FY26 financial results, showcasing mixed performance with robust revenue growth offset by margin pressures. The chemicals manufacturer reported revenue of ₹41.02 crores for the quarter ended December 31, 2025, marking a 9.33% year-on-year increase from ₹37.51 crores in the corresponding period last year.

Board Meeting and Regulatory Compliance

The Board of Directors approved the standalone and consolidated unaudited financial results at their meeting held on January 16, 2026, at the company's registered office. The board meeting commenced at 11:30 a.m. and concluded at 2:45 p.m., with the results submitted to BSE and NSE under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

The company's Q3FY26 results present a contrasting picture of strong top-line growth alongside operational challenges. Net profit reached ₹9.11 crores, representing a modest 2.15% year-on-year improvement from ₹8.92 crores in Q3FY25.

EBITDA Performance Analysis

The most significant concern in Q3FY26 was the decline in EBITDA performance. EBITDA dropped to ₹8.61 crores from ₹9.74 crores in the previous year, representing an 11.55% year-on-year decline. The EBITDA margin compressed substantially to 20.98% from 25.97%, indicating operational efficiency challenges despite revenue expansion.

Operational Challenges

During the quarter, the company's Pithampur Plant remained shut down from October 14, 2025, to November 22, 2025, due to planned annual maintenance of the boiler. This operational disruption likely contributed to the margin compression and affected overall production efficiency.

Regulatory Impact

The company experienced a one-time impact from New Labour Codes effective November 21, 2025. The Government of India consolidated multiple existing labour legislations into four unified Labour Codes, resulting in an estimated one-time decrease in provision for employee benefits of ₹27.97 lakhs, which was recognized as employee benefit expense in the current reporting period.

Nine-Month Performance

For the nine months ended December 31, 2025, the company demonstrated stronger overall performance with revenue reaching ₹152.44 crores compared to ₹125.14 crores in the corresponding period last year, marking a 21.82% increase. Net profit for the nine-month period stood at ₹35.24 crores, up from ₹31.81 crores, representing a 10.78% growth.

Indo Borax & Chemicals Limited has received a detailed public statement regarding an open offer by Zenrock Chemicals Private Limited and its associates for acquisition of equity shares. The company disclosed this development pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

Open Offer Details

The open offer has been initiated by Zenrock Chemicals Private Limited (Acquirer) along with India Special Assets Fund III (PAC1), ISAF III Onshore Fund (PAC2), and Special Situation India Fund (PAC3) collectively referred to as PACs (Persons Acting in Concert).

The offer price of ₹256.30 per share has been determined in accordance with Regulation 8 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011, representing the highest of various pricing benchmarks including volume weighted average market price and negotiated acquisition price.

Regulatory Compliance and Publication

The detailed public statement was published in multiple newspapers as required under Regulation 14(3) of the Takeover Regulations.

IIFL Capital Services Limited is acting as the manager to the open offer on behalf of the acquirer and PACs. The offer is being made pursuant to Regulations 3(1) and 4 read with other applicable provisions of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011.

Share Purchase Agreement Background

The open offer follows a Share Purchase Agreement (SPA) executed between the acquirer and the PACs with certain sellers. Under this agreement, the acquirer is set to acquire 1,63,00,290 equity shares representing 50.00% of the existing voting share capital of the target company.

Financial Arrangements

The acquirer has made comprehensive financial arrangements for the transaction, including issuing ₹750.00 crores of fully paid-up Compulsorily Convertible Preference Shares (CCPS) to fund the acquisition and open offer obligations.

The PACs have also entered into financing arrangements aggregating ₹390.00 crores to support their participation in the transaction structure.

Regulatory Approvals and Timeline

No statutory or regulatory approvals are required for the open offer. The offer will remain open for acceptance by public shareholders for a period of at least 10 working days but not exceeding 10 working days from the date of publication of the detailed public statement.

Shareholders who wish to participate in the open offer will need to submit their acceptance through the designated procedures outlined in the detailed public statement, with IIFL Capital Services Limited serving as the manager to facilitate the process.