Jaykay Enterprises Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, presenting a mixed performance across its standalone and consolidated operations. The company's Board of Directors approved these results at a meeting held on February 13, 2026.

Standalone Financial Performance

The company's standalone operations showed a decline in profitability during Q3FY26. Net profit decreased to ₹173.58 lakh compared to ₹363.19 lakh in the corresponding quarter of the previous year.

For the nine months ended December 31, 2025, standalone net profit reached ₹1,808.71 lakh compared to ₹1,250.33 lakh in the corresponding period last year, showing significant improvement in the year-to-date performance.

Consolidated Financial Results

The consolidated results presented a different picture, with improved performance in the current quarter. Consolidated net profit increased to ₹678.01 lakh in Q3FY26 from ₹538.88 lakh in Q3FY25.

Segment-wise Performance

The company operates through multiple business segments, with varying performance across divisions:

Defence & Aerospace Division:

• Q3FY26 revenue: ₹64.64 lakh (standalone), ₹953.86 lakh (consolidated)
• Nine months FY26: ₹188.19 lakh (standalone), ₹2,527.68 lakh (consolidated)

Digital Manufacturing and Advance Systems:

• Consolidated Q3FY26 revenue: ₹36.06 lakh
• Nine months FY26: ₹53.41 lakh (consolidated)

Digital Service (Consolidated only):

• Q3FY26 revenue: ₹5,007.38 lakh
• Nine months FY26: ₹15,268.12 lakh

Auditor Concerns and Key Issues

The independent auditor's review report highlighted several significant concerns that resulted in a qualified conclusion:

Misappropriation of Funds:

• Ex-director of subsidiary Neumesh Labs Private Limited misappropriated funds and trade receivables worth ₹152.99 lakh (standalone) and ₹5,045.34 lakh (consolidated)
• FIR filed on June 13, 2025 against the ex-director
• Management has not made provision for expected credit loss, hoping for full recovery through legal proceedings

Inventory Valuation Issues:

• Closing work-in-progress inventory of ₹357.65 lakh not valued according to Ind AS-2
• Inventories valued at cost instead of lower of cost or net realizable value

Regulatory Considerations

The company faces potential regulatory implications under Section 45-IA of the Reserve Bank of India Act, 1934, as financial assets constitute more than 50% of total assets and income from financial assets exceeds 50% of gross income. However, management maintains that registration is not required since the company's primary business involves digital manufacturing, software development, and aerospace manufacturing, with investments mainly in wholly-owned subsidiaries.

Rights Issue Utilization

The company provided detailed utilization of ₹14,614.42 lakh raised through rights issue, with significant allocations to subsidiaries JK Defence & Aerospace Limited and JK Digital and Advance Systems Private Limited for plant and machinery purchases, land acquisition, and loan repayments.

Exceptional Items

Consolidated results included exceptional items of ₹447.56 lakh related to additional provisions for gratuity and leave encashment due to changes in Labour Code definitions notified by the Government of India on November 21, 2025.

Jaykay Enterprises Limited has issued a corporate guarantee of ₹40.00 crores to secure credit facilities for its joint venture partner, marking a significant financial commitment to support the operations of JK Phillips LLP. The guarantee was executed on January 02, 2026, in favor of Axis Bank Limited.

Corporate Guarantee Details

The corporate guarantee covers credit facilities for JK Phillips LLP, which operates as a 50:50 joint venture between Jaykay Enterprises Limited and Phillips Machine Tools India Private Limited. Phillips Machine Tools India is a subsidiary of Phillips Corporation, USA, bringing international expertise to the partnership.

Regulatory Compliance and Disclosure

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, following the SEBI Master Circular dated November 11, 2024. The company has confirmed that the corporate guarantee agreement was executed on an arm's length basis, ensuring transparency in the transaction.

Key regulatory aspects include:

• No promoter or promoter group interest in the transaction
• Transaction conducted on arm's length basis
• Full compliance with SEBI disclosure requirements
• Information hosted on company website for public access

Financial Impact

The corporate guarantee will be treated as a contingent liability on Jaykay Enterprises' books. This financial commitment demonstrates the company's confidence in the joint venture's prospects and its willingness to support the partnership's growth through secured credit facilities.

The guarantee structure provides JK Phillips LLP with enhanced access to banking facilities while maintaining clear accountability frameworks between the joint venture partners.