Kabra Commercial Limited has reported its unaudited financial results for the quarter and nine months ended December 31, 2025, showing a significant decline in profitability amid challenging business conditions. The Board of Directors approved these results on February 12, 2026, following a comprehensive review by the Audit Committee.

Financial Performance Overview

The company's financial performance for Q3FY26 reflected substantial pressure on both revenue and profitability metrics. The results demonstrate the impact of market conditions on the company's core transportation and service operations.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, Kabra Commercial demonstrated resilience despite year-over-year challenges. The company maintained operational efficiency while navigating market headwinds.

Segment-wise Revenue Performance

The company's primary business segment, Coal/Coke Transportation & Service/Commission, generated revenue of ₹479.05 lacs in Q3FY26, compared to ₹962.83 lacs in the corresponding quarter of the previous year. The Investment & Finance segment reported negative revenue of ₹48.04 lacs during the quarter, while unallocated revenue contributed ₹32.74 lacs.

Operational Expenses and Profitability

Total expenses for Q3FY26 amounted to ₹338.10 lacs, significantly lower than ₹741.10 lacs in Q3FY25. Transportation & Direct Expenses constituted the largest expense component at ₹304.19 lacs. The company reported profit before tax of ₹125.65 lacs, with current tax expense of ₹52.35 lacs.

Balance Sheet Position

The company maintained a strong balance sheet with total assets of ₹4,259.16 lacs as of December 31, 2025, compared to ₹4,352.83 lacs in the previous year. Total liabilities stood at ₹1,789.05 lacs. The paid-up equity share capital remained unchanged at ₹294.00 lacs with a face value of ₹10 per share.

Auditor's Observations

The independent auditor's limited review report highlighted a significant matter regarding Sundry Debtors amounting to ₹2,66,22,251 outstanding for more than three years and currently under litigation. The management considers this amount fully recoverable based on legal opinion, though the auditor expressed inability to comment on the ultimate realization value given the extended court process timeline.

Kabra Commercial Limited has informed the Bombay Stock Exchange about receiving a final tax assessment order from the Sales Tax Officer in Gandhidham, Gujarat. The company submitted this regulatory filing on December 19, 2025, in continuation of its previous intimation dated December 18, 2025.

Assessment Details and Financial Impact

The tax assessment order pertains to the financial year 2011-12, covering the period from April 1, 2011, to March 31, 2012. The assessment was conducted under multiple tax legislations including the Central Sales Tax Act, 1956, and the Gujarat Value Added Tax Act, 2003.

Payment Timeline and Compliance Requirements

The assessment order, dated March 29, 2016, directs the company to pay the outstanding amount of ₹28.51 lakhs (Rupees twenty-eight lakhs fifty-one thousand two hundred twenty only) into the government treasury at Gandhidham. The company has been given specific deadlines for compliance:

• Payment Due Date: April 28, 2016, or within 35 days of service of notice, whichever is later
• Receipt Submission: Within 5 days from the date of payment
• Appeal Period: 60 days from the passing of the assessment order

Regulatory Framework and Penalties

The assessment has been conducted under various sections of the Gujarat Sales Tax Act, 1969, read with Section 9(2) of the Central Sales Tax Act, 1956. The order includes provisions for additional penalties if the assessed amount remains unpaid beyond the specified date. The company can file an appeal against the assessment order with the DC Appeal-II Rajkot under Section 65 of the Gujarat Sales Tax Act, 1969.

Assessment Authority

The final notice of assessment has been issued by R.R. Thoriya, Assistant Commissioner of State Tax-1, Unit-103, Gandhidham (Kutch). The assessment order follows the prescribed format under Form VII(B) as per Rule 9A of the Central Sales Tax (Gujarat) Rules, 1970.

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI Listing Regulations by informing the stock exchange about this material development that could impact its financial position.