Jai Balaji Industries Limited reported a sharp decline in financial performance for the third quarter ended December 31, 2025, with net profit falling 90% year-on-year. The steel manufacturing company's board approved the unaudited financial results at a meeting held on February 12, 2026.

Financial Performance Overview

The company's quarterly performance showed significant deterioration across key metrics compared to the same period last year:

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, also reflected challenging operating conditions. Revenue from operations declined to ₹4,039.10 crore from ₹4,761.27 crore in the corresponding period of the previous year, representing a 15% decrease. Net profit for the nine-month period stood at ₹108.58 crore, down 77% from ₹482.40 crore achieved in the same period last year.

Cost Structure and Operational Metrics

The company's cost of materials consumed decreased to ₹952.00 crore in Q3FY26 from ₹1,049.05 crore in Q3FY25. Employee benefits expense remained relatively stable at ₹42.18 crore compared to ₹44.77 crore in the previous year. Finance costs increased to ₹15.96 crore from ₹14.86 crore, while depreciation and amortisation expense rose significantly to ₹31.50 crore from ₹22.93 crore.

Corporate Developments

The board approved the termination of two joint venture agreements related to coal operations. The Joint Venture Agreement dated March 5, 2008, involving JSW Steel Limited, Bhushan Power & Steel Limited, and Jai Balaji Industries Limited for Rohne Coal Company Private Limited was terminated with immediate effect due to de-allocation of the Rohne Coking Coal Block. Additionally, the Joint Venture Agreement dated January 21, 2009, for Andal East Coal Company Private Limited is no longer in force as the joint venture company is under liquidation.

Regulatory and Operational Notes

The company operates primarily in steel product manufacturing and has only one reportable operating segment. The financial results received an unmodified opinion from statutory auditors Das & Prasad, Chartered Accountants. The company maintains its paid-up equity share capital at ₹182.45 crore with a face value of ₹2 per share. The board also approved maintaining books of account at a new location in Kolkata from February 13, 2026.

Jai Balaji Industries has officially commenced commercial production of OPVC (Oriented Polyvinyl Chloride) pipes, tubes, and fittings, as confirmed through a regulatory filing under Regulation 30 of SEBI Listing Regulations. The company formally notified stock exchanges on February 2, 2026, marking the successful launch of its expanded manufacturing operations.

Official Production Commencement

The company has fulfilled its earlier commitment to enter the OPVC segment, with commercial production now officially underway. This development follows the company's initial intimation dated May 12, 2025, regarding its strategic expansion into OPVC manufacturing.

Regulatory Compliance and Communication

Jai Balaji Industries has maintained full transparency with stakeholders through proper regulatory channels. The company filed official intimations with both the National Stock Exchange of India Limited (scrip code: JAIBALAJI) and BSE Limited (scrip code: 532976). Company Secretary Ajay Kumar Tantia signed the official communication, ensuring compliance with listing obligations and disclosure requirements.

Strategic Business Expansion

This milestone represents the successful execution of Jai Balaji Industries' diversification strategy into high-performance piping solutions. OPVC products offer enhanced strength, durability, and superior mechanical properties compared to conventional PVC materials. The oriented manufacturing process creates products suitable for demanding applications in water supply, irrigation, and industrial piping systems.

Market Positioning

With the official commencement of OPVC production, the company is now positioned to serve the growing demand for advanced piping solutions in India's infrastructure and construction sectors. The 1200 tonnes annual capacity provides a solid foundation for the company to establish its presence in this specialized segment while maintaining its existing business operations.