Kanoria Chemicals & Industries Limited delivered impressive financial results for the third quarter of fiscal year 2026, demonstrating significant improvement across key performance metrics. The company's board approved the unaudited financial results for the quarter and nine months ended December 31, 2025, in a meeting held on February 12, 2026.

Strong Revenue Growth Drives Performance

The company's standalone operations showed remarkable momentum with revenue from operations reaching ₹23,059 lakhs in Q3FY26, marking a substantial 42% increase from ₹16,239 lakhs recorded in Q3FY25. Sequential growth was equally impressive, with revenue rising 21% from ₹19,087 lakhs in Q2FY26.

Profitability Turnaround

The company achieved a significant turnaround in profitability, reporting net profit of ₹393 lakhs in Q3FY26 compared to a loss of ₹1,970 lakhs in the same quarter last year. This improvement was supported by better operational efficiency, with total expenses rising to ₹21,738 lakhs from ₹15,422 lakhs, but at a slower pace than revenue growth.

Earnings per share for continuing operations improved to ₹0.90 in Q3FY26 from negative ₹4.51 in Q3FY25, reflecting the company's enhanced profitability.

Nine-Month Performance Highlights

For the nine months ended December 31, 2025, the company maintained strong momentum with revenue from operations growing 25% year-on-year to ₹60,800 lakhs from ₹48,501 lakhs in the corresponding period of the previous year.

Consolidated Results Show Similar Strength

The consolidated financial results reflected comparable performance with Q3FY26 revenue from operations at ₹26,582 lakhs compared to ₹18,035 lakhs in Q3FY25, representing a 47% year-on-year increase. Net profit for the quarter stood at ₹355 lakhs against a loss of ₹2,863 lakhs in the previous year.

For the nine months, consolidated revenue reached ₹67,704 lakhs, up from ₹54,043 lakhs, while the company reported net profit of ₹8,158 lakhs compared to a loss of ₹6,804 lakhs in the corresponding period last year.

Segment Performance and Operations

The company operates primarily in the chemicals manufacturing business, which is considered as one reportable segment. The Alco Chemicals segment generated revenue of ₹23,058 lakhs in Q3FY26 and ₹60,800 lakhs for the nine months, showing consistent growth momentum.

The company also noted the impact of new labour codes effective from November 21, 2025, recognizing an incremental expense of ₹49 lakhs in employee benefit expenses for the quarter and nine months ended December 31, 2025.

Kanoria Chemicals & Industries Limited has secured a favorable outcome in a tax-related legal matter, with the Supreme Court of India dismissing an appeal filed by the Commissioner of Income Tax-IV Kolkata on January 28, 2026. The company has now provided additional regulatory details following exchange queries.

Supreme Court Decision Details

The apex court's decision in Civil Appeal No. 13772/2015 was straightforward and based on established precedent. Justice Dipankar Datta and Justice Augustine George Masih presided over the matter, with the Additional Solicitor General Mr. Raghavendra P. Shankar representing the tax department.

Legal Precedent and Court Reasoning

The court's decision was significantly influenced by a previous ruling in the Commissioner of Income Tax v. M/s. Jindal Steel & Power Limited case, decided on December 6, 2023. The Additional Solicitor General acknowledged that the issue involved in the Kanoria Chemicals appeal was already addressed by this coordinate bench judgment, which had ruled against the revenue department.

The Supreme Court noted that since the legal question had been definitively answered in the Jindal Steel case and batch matters, there was no need for further deliberation on the same issue.

Regulatory Compliance and Additional Disclosures

Following exchange queries dated January 31, 2026, Kanoria Chemicals provided additional clarifications on February 2, 2026. The company explained that under SEBI regulations, only orders passed against listed entities require mandatory disclosure, but this was a voluntary disclosure following good corporate governance principles.

The company clarified that while SEBI Circular requirements for detailed disclosures typically apply to orders against entities, Kanoria Chemicals voluntarily provided comprehensive details. The company confirmed that the Supreme Court's dismissal of the appeal has no material impact on its operations or activities.

Corporate Governance and Transparency

Kanoria Chemicals emphasized its commitment to transparency by voluntarily disclosing information beyond regulatory requirements. The company received the Supreme Court order via mail on January 29, 2026, and made the disclosure within 24 hours on January 30, 2026, demonstrating prompt compliance with listing obligations.

The dismissal of this appeal represents a positive resolution for the company, conclusively ending a legal matter that had been ongoing since 2015. With all pending applications also disposed of as per the court's order, the company can now move forward without this particular tax-related legal uncertainty.