K&R Rail Engineering Limited announced its consolidated financial results for the quarter ended December 31, 2025, showing a significant decline in performance compared to the previous year. The railway engineering company reported a consolidated net loss of ₹86.46 lakhs for Q3 FY26, marking a sharp reversal from the profit of ₹642.80 lakhs recorded in the corresponding quarter of the previous fiscal year.

Financial Performance Overview

The company's consolidated revenue from operations witnessed a substantial decline during the quarter:

Standalone Results

On a standalone basis, K&R Rail Engineering reported similar trends with a net loss of ₹84.65 lakhs for Q3 FY26 compared to a profit of ₹636.49 lakhs in Q3 FY25. Standalone revenue from operations declined to ₹1177.62 lakhs from ₹15182.40 lakhs in the corresponding previous quarter.

Nine-Month Performance

For the nine months ended December 31, 2025, the consolidated financial performance showed:

Reasons for Performance Decline

The company provided specific reasons for the quarterly loss, stating that it sold old equipment and other unused assets upon completion of one of its projects. This resulted in a loss on fixed assets, contributing to the overall quarterly loss. The significant decline in revenue suggests reduced project activity during the quarter.

Expense Analysis

Despite lower revenue, the company's total consolidated expenses for Q3 FY26 were ₹1305.42 lakhs compared to ₹14288.84 lakhs in Q3 FY25. The cost of materials consumed decreased proportionally to ₹1054.78 lakhs from ₹13921.95 lakhs in the previous year quarter.

Corporate Structure

The consolidated results include subsidiary Robsons Engineering & Constructions Private Limited, which reported revenue of ₹8.25 lakhs and a net loss of ₹1.82 lakhs for Q3 FY26. The financials of K&R Global LLC-FZ were not included as the subsidiary has cancelled its licence.

Board Approval and Audit

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on February 27, 2026. The board meeting commenced at 5:30 PM IST and concluded at 7:25 PM IST at the company's registered office in Hyderabad. The results were subject to limited review by statutory auditors J Singh & Associates, who issued an unqualified review report on the quarterly and nine-month financial statements.

K&R Rail Engineering Limited has announced significant changes to its board composition and scheduled an Extraordinary General Meeting following a board meeting held on January 22, 2026. The meeting, conducted at the company's registered office in Hyderabad, addressed key governance matters including director appointments and resignations.

Board Composition Changes

The company has made strategic changes to its leadership structure with the appointment of a new director and the resignation of an existing board member. These changes reflect the company's ongoing commitment to strengthening its governance framework.

New Director Profile and Qualifications

Mr. Ilyas Nasir Khan brings substantial experience to the K&R Rail Engineering board. He is described as a dynamic and results-driven business development and administration professional with over 15 years of experience in leadership roles within the Middle East and India. His expertise spans compliance, strategic planning, and executing business initiatives that drive growth and enhance organizational performance.

The company has confirmed that Mr. Khan is not related to any existing directors, key managerial personnel, or promoters of the company. He currently holds no equity shares in the company and is not debarred from holding directorship by SEBI or any other regulatory authority.

Extraordinary General Meeting Details

K&R Rail Engineering has scheduled an Extraordinary General Meeting to formalize the board changes and address other corporate matters. The meeting will be conducted through modern communication channels to ensure broad shareholder participation.

Resignation Details

Mr. Shaik Suhail Nasir submitted his resignation from the Executive Director position citing professional responsibilities and personal reasons. In his resignation letter dated January 5, 2026, he confirmed that there were no material reasons for his resignation beyond those stated. The resignation was effective from the close of business hours on January 5, 2026.

Regulatory Compliance

The board meeting, which commenced at 4:00 PM IST and concluded at 4:35 PM IST, was conducted in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. All required disclosures have been made to BSE Limited, where the company's shares are listed under scrip code 514360. The company has appointed M/s. Aakanksha Dubey & Co. as scrutinizer for remote e-voting and voting during the EGM, ensuring compliance with the Companies Act, 2013.