Kalyani Steels Limited has announced its unaudited financial results for the quarter ended December 31, 2025, showing revenue of ₹4.62 billion and standalone net profit of ₹613 million. The company demonstrated operational efficiency with EBITDA margin expansion despite revenue challenges during the quarter.

Q3FY26 Financial Performance

The company's standalone financial results for the quarter ended December 31, 2025, reflect mixed performance with revenue declining to ₹4.62 billion from ₹4.84 billion in the corresponding period of the previous year. However, profitability metrics showed improvement with standalone net profit rising to ₹613 million compared to ₹554 million year-on-year.

Nine Months Performance

For the nine months ended December 31, 2025, the company reported revenue from operations of ₹13.61 billion compared to ₹14.38 billion in the corresponding period of the previous year. Standalone net profit for the nine-month period reached ₹1.84 billion against ₹1.74 billion in the previous year, with earnings per share of ₹42.17 compared to ₹39.80.

Exceptional Items and Labour Code Impact

The company recorded exceptional items of ₹67 million during the quarter, attributed to the one-time incremental impact of new Labour Codes implemented by the Government of India effective November 21, 2025. The government consolidated 29 existing labour legislations into a unified framework comprising four Labour Codes, resulting in this one-time charge.

Board Meeting and Regulatory Compliance

The Board of Directors approved these results at their meeting held on February 3, 2026, which commenced at 11:30 AM and concluded at 1:05 PM. The results were prepared under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and have been subject to limited review by statutory auditors Kirtane & Pandit LLP.

Consolidated Results

On a consolidated basis, the company reported revenue of ₹4.62 billion for the quarter with net profit of ₹620 million. The consolidated results include the company's subsidiary DGM Realities Private Limited and proportionate share in joint operation Hospet Steels Limited.

Kalyani Steels Limited has completed the acquisition of remaining equity shares in DGM Realities Private Limited, making it a wholly owned subsidiary. The company purchased 10,000 equity shares from KSMS Technologies Solutions Private Limited at ₹172.00 per share, totaling ₹1.72 million, as announced on January 13, 2026.

Acquisition Details

The transaction increases Kalyani Steels' shareholding in DGM Realities from 99.92% to 100%. Following the acquisition, the company now holds 13,206,000 equity shares of ₹10.00 each, representing complete ownership of the subsidiary.

About DGM Realities

DGM Realities Private Limited operates in the real estate sector and has been part of the Kalyani Group since its incorporation on January 12, 2010. The company is engaged in purchasing land and buildings for development or resale, managing construction projects, and providing project management and maintenance activities.

Strategic Rationale

The acquisition aligns with Kalyani Steels' strategic objectives, particularly regarding DGM's ownership of a 25-acre land parcel near the Bengaluru-Mysuru Highway Corridor. The company plans to utilize this property for:

• Marketing network expansion
• Business development activities
• Service center operations
• Distribution center establishment

Related Party Transaction

The transaction constitutes a related party transaction as DGM Realities and KSMS Technologies Solutions Private Limited are related parties under common control of the promoter and promoter group. The company confirmed that the share purchase was conducted on an arm's length basis, ensuring fair valuation and compliance with regulatory requirements.

Regulatory Compliance

The acquisition was completed without requiring governmental or regulatory approvals. Kalyani Steels has fulfilled all disclosure requirements under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, providing comprehensive details about the transaction to stock exchanges.