Integra Engineering India Limited announced its unaudited financial results for the third quarter of FY26 ended December 31, 2025, revealing a challenging performance marked by declining profitability despite stable operational metrics. The Board of Directors approved these results during their meeting held on January 28, 2026.

Quarterly Financial Performance

The company's Q3 FY26 results showed a significant contraction in profitability compared to the previous year. Key financial metrics demonstrated the impact of challenging market conditions on the engineering company's operations.

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, presented a mixed performance picture with revenue growth offset by margin pressures. The company maintained its market position while facing profitability challenges.

Cost Structure and Operational Metrics

The company's cost analysis revealed several factors contributing to the profit decline. Material costs remained substantial, while other operational expenses showed variations across different categories.

Key Cost Components (Q3 FY26):

• Cost of Material Consumed: ₹2,151.60 lakhs
• Employee Benefit Expenses: ₹450.30 lakhs
• Other Expenses: ₹892.59 lakhs
• Finance Costs: ₹72.97 lakhs
• Depreciation and Amortisation: ₹123.30 lakhs

Earnings Per Share and Capital Structure

The company's earnings per share reflected the overall profit decline, with both basic and diluted EPS showing significant reduction compared to the previous year.

Regulatory and Compliance Updates

The company noted the implementation of four new labour codes by the Government of India, notified on November 21, 2025. Management has considered the financial impact of these new regulations and recognized the associated expenses in the current quarter's results. The company continues to assess potential additional impacts as relevant rules are notified by appropriate authorities.

Business Segment and Outlook

Integra Engineering operates in the manufacturing of machineries and components, which constitutes a single reportable segment under Ind AS-108. The consolidated financial results mirror the standalone performance, indicating consistent operational metrics across the company's business structure. The results were reviewed by statutory auditors CNK & Associates LLP and approved by the Board of Directors following audit committee recommendations.

Integra Engineering India Limited has received a compounding order from the Reserve Bank of India (RBI) for multiple violations under the Foreign Exchange Management Act (FEMA), requiring the company to pay a penalty of ₹21.40 lakhs. The order was issued by RBI's Foreign Exchange Department, Ahmedabad, on December 11, 2025, and received by the company via email on December 15, 2025.

RBI Compounding Order Details

The compounding order, issued under CA No. AHM-480/2025-26, addresses several compliance violations committed by the company over multiple years. The RBI exercised powers conferred under Section 15(1) of the Foreign Exchange Management Act, 1999, to issue this order.

Nature of FEMA Violations

The compounding order identifies three primary categories of violations that occurred over extended periods:

Form FCGPR Filing Delays

The company failed to file Form FCGPR within the prescribed 30-day period from the date of equity instrument issuance. This violation involved ₹12.40 crores worth of shares and resulted in a delay of 7,275 days, representing a significant compliance breach.

Form FCGPR Part B Filing Delays

Integra Engineering delayed filing Form FCGPR Part B for financial years 2007-08 to 2009-10, with delays ranging from 5,438 to 6,168 days beyond the due dates. Additionally, the transferor company in an amalgamation also had similar delays ranging from 5,441 to 6,171 days for the same period.

FLA Return Filing Delays

The company also violated regulations by delaying the filing of FLA (Foreign Liability and Asset) returns for financial years 2010-11 to 2015-16 and 2017-18, with delays ranging from 6 days to 5,177 days beyond stipulated deadlines.

Background and Context

The violations stem from complex corporate transactions involving foreign investment. In October 2004, Integra Engineering had allotted 1.24 crore cumulative redeemable preference shares of face value ₹10 each to Saurer GmbH Co. KG, Germany, by converting outstanding External Commercial Borrowing loans. Subsequently, following a court-sanctioned amalgamation in March 2012, the company issued 75.73 lakh equity shares to Integrated Holding AG, Switzerland.

Company Response and Impact Assessment

Integra Engineering has acknowledged the violations and agreed to pay the compounding amount stipulated by RBI. The company opted not to attend the personal hearing offered by RBI and submitted its agreement to pay the penalty through written communication dated October 28, 2025.

The company has stated that there will be no material impact on its financial, operational, or other activities due to this compounding order. The penalty must be paid within 15 days of the order date through demand draft or electronic transfer to the RBI Ahmedabad office.