Indokem Limited announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, demonstrating strong operational performance and recovery from previous year's challenges.

Financial Performance Highlights

The company's standalone financial results showed remarkable improvement across key metrics. For the third quarter of FY26, Indokem reported significant growth in profitability while maintaining steady revenue performance.

The nine-month performance showed even more dramatic improvement, with the company achieving profitability after previous year's losses.

Consolidated Results Performance

The consolidated financial results, including subsidiaries, reflected mixed performance with revenue declining year-over-year while maintaining profitability. The consolidated net profit for Q3 FY26 stood at ₹40 lakhs compared to ₹73 lakhs in the previous year, representing a decline of 45.2%.

Operational Updates and Regulatory Compliance

The Board noted significant operational developments during the period. The Maharashtra Pollution Control Board (MPCB) had issued a temporary closure order for the company's manufacturing unit at Chikhloli MIDC, Ambernath. However, following compliance measures and representations by the company, MPCB issued restart directions dated January 14, 2026, permitting resumption of production activities subject to stipulated conditions.

The company confirmed that there was no material financial impact on account of the temporary closure of the plant during the intervening period, demonstrating effective operational management during the regulatory process.

Corporate Governance Developments

Based on recommendations from the Nomination and Remuneration Committee, the Board approved revision in remuneration for Mr. Manish Mahendra Khatau, Whole Time Director, for the period from April 1, 2026, to February 28, 2027. The proposed remuneration aligns with the company's Remuneration Policy and will be subject to shareholder approval at the forthcoming Annual General Meeting.

Impact of New Labour Codes

The company has proactively addressed the implementation of four new labour codes notified by the Government of India on November 21, 2025. These codes consolidate and rationalize 29 existing labour laws. Based on management estimates, the company has recognized the financial impact of these new Labour Codes as an expense in the current quarter and nine-month results. The assessment of other potential impacts will be undertaken upon notification of relevant rules by appropriate authorities.

The financial results were reviewed by statutory auditors CNK & Associates LLP, recommended by the Audit Committee, and approved by the Board of Directors at their meeting held on January 30, 2026.

Indokem Ltd has received restart directions from the Maharashtra Pollution Control Board (MPCB), enabling the company to resume production operations at its manufacturing unit. The approval represents a crucial regulatory milestone for the chemicals sector company following closure directions issued in November.

Regulatory Approval Details

The company received restart directions with reference number MPCB/Restart/2601140001 from the Regional Officer, MPCB Kalyan, District Thane. The approval permits the restart of production activities at the manufacturing unit situated at Plot No. 128, Chikhloli MIDC, Ambernath, Taluka Ambernath, District Thane, subject to compliance with stipulated conditions.

Background and Context

The restart directions have been issued pursuant to closure directions issued by MPCB in November, after due consideration of the company's representation and compliance measures undertaken. This development follows the company's previous disclosure made on November 17 regarding the closure directions.

Compliance Framework

Indokem Ltd has confirmed that it will strictly comply with all conditions stipulated by MPCB and continue to adhere to applicable environmental and other statutory requirements. The company must demonstrate ongoing compliance with the prescribed environmental and safety standards to maintain operations.

Regulatory Disclosure

The company has made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, informing BSE Limited about the restart directions. This regulatory approval enables Indokem Ltd to restore its production capabilities, supporting operational continuity in the chemicals sector while ensuring environmental compliance standards are maintained.