Kabsons Industries Limited has announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, demonstrating a significant operational turnaround. The company's Board of Directors approved these results at their meeting held on February 10, 2026, with the statutory auditors conducting a limited review of the financial statements.

Financial Performance Highlights

The company's quarterly performance showed marked improvement across key metrics. Revenue from operations for Q3FY26 reached ₹1,101.05 lakhs, representing a slight decline from ₹1,108.30 lakhs in the corresponding quarter of the previous year. However, the company achieved a remarkable turnaround in profitability, reporting a net profit of ₹59.12 lakhs compared to a loss of ₹1.73 lakhs in Q3FY25.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, Kabsons Industries demonstrated consistent growth momentum. The company reported revenue from operations of ₹3,174.22 lakhs compared to ₹2,983.09 lakhs in the corresponding period of the previous year, marking a growth of 6.41%. Net profit for the nine-month period stood at ₹141.11 lakhs, though this was lower than ₹207.42 lakhs in the previous year, primarily due to exceptional items of ₹82.14 lakhs recorded in the prior period.

Operational Efficiency and Cost Management

The company's operational performance reflected improved cost management strategies. Purchase of stock in trade, the primary expense component, decreased to ₹895.95 lakhs in Q3FY26 from ₹967.13 lakhs in Q3FY25. Employee benefit expenses increased to ₹48.04 lakhs from ₹37.30 lakhs, partly attributed to the implementation of New Labour Code regulations effective November 21, 2025. Finance costs remained controlled at ₹1.35 lakhs, while depreciation expenses rose to ₹35.84 lakhs from ₹28.65 lakhs in the previous year.

Business Segments and Operations

Kabsons Industries operates primarily in LPG trading and leasing out bottling plants temporarily. The company maintains its registered office in Hyderabad and continues to focus on these core business segments. The financial results indicate no other reportable segments as per Indian Accounting Standard (Ind AS - 108).

Capital Structure and Shareholder Returns

The company's paid-up equity share capital remained stable at ₹1,746.30 lakhs, consisting of 1,74,63,000 equity shares with a face value of ₹10 each. Other equity improved to ₹(211.13) lakhs from ₹(351.36) lakhs in the previous year, reflecting the company's efforts to strengthen its balance sheet position.

Regulatory Compliance and Governance

The financial results comply with Regulation 33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, and have been prepared in accordance with Indian Accounting Standards (Ind AS). The audit committee reviewed the results before Board approval, and K S Rao & Co., Chartered Accountants, conducted the limited review, confirming compliance with applicable accounting standards and regulatory requirements.

Kabsons Industries has reported a robust financial performance for the first quarter ended June 30, with significant growth in both revenue and profitability. The company's strong results were primarily driven by its LPG trading business.

Financial Highlights

• Revenue from operations grew by 15.1% to Rs. 1014.26 lakhs
• Net profit surged by 47.1% to Rs. 84.77 lakhs
• EBITDA improved to Rs. 120.59 lakhs from Rs. 87.92 lakhs
• EBITDA margin expanded to 11.89% from 9.97%
• Net profit margin improved to 8.36% from 6.54%
• Earnings per share increased to Rs. 0.49 from Rs. 0.33

Performance Analysis

The company's impressive growth in revenue can be attributed to higher sales volumes in its LPG trading business. Kabsons Industries has successfully capitalized on the increasing demand for LPG, which has resulted in a substantial boost to its top-line performance.

The significant improvement in profitability is a result of several factors:

1. Increased Sales Volumes: The company experienced higher demand for its LPG products, leading to increased sales volumes.
2. Better Pricing: Improved pricing strategies have contributed to the enhanced profit margins.
3. Cost Optimization: Effective cost management measures have helped in improving overall profitability.

Balance Sheet Strengthening

Kabsons Industries has also reported an improvement in its balance sheet position. The company's other equity improved to Rs. -267.77 lakhs from Rs. -501.14 lakhs in the same period last year, indicating a strengthening of the balance sheet.

Segment Information

Kabsons Industries is primarily engaged in trading LPG and leasing out bottling plants temporarily. The company does not have any other reportable segments as per Indian Accounting Standard (Ind AS - 108).

Auditor's Review

K.S. Rao & Co., Chartered Accountants, conducted a limited review of the financial results. They noted that the company has not recognized provisions for gratuity and leave encashment liabilities based on actuarial valuation, as required under Ind AS 19, Employee Benefits. However, the management views this non-provision as immaterial to the quarterly results, considering the current employee strength and salaries. The company intends to carry out the actuarial valuation and recognize the liability in subsequent quarters.

Conclusion

Kabsons Industries' strong performance in Q1 demonstrates the company's ability to capitalize on market opportunities in the LPG trading sector. With improved profitability metrics and a strengthening balance sheet, the company appears well-positioned for continued growth in the coming quarters. However, investors should note the auditor's emphasis on the non-recognition of certain employee benefit liabilities and monitor how the company addresses this in future reporting periods.

Note: All figures are in lakhs of rupees, except for EPS