Khaitan (India) Limited delivered impressive financial performance in the third quarter of FY26, demonstrating strong operational momentum across its key business segments. The company's Board of Directors approved the unaudited financial results for the quarter and nine months ended December 31, 2025, during their meeting held on January 29, 2026.

Strong Quarterly Performance

The company reported robust growth in Q3FY26, with revenue from operations reaching ₹2,682.89 lakhs compared to ₹1,788.65 lakhs in Q3FY24, marking a substantial 50% year-on-year increase. Net profit for the quarter stood at ₹123.59 lakhs, representing a significant 61% growth from ₹76.69 lakhs in the corresponding period last year.

Nine-Month Financial Overview

For the nine-month period ended December 31, 2025, the company achieved total income of ₹7,645.46 lakhs, up 46% from ₹5,238.89 lakhs in the previous year. However, net profit for the nine-month period declined to ₹313.97 lakhs from ₹353.89 lakhs in the corresponding period of FY25.

Segment-wise Performance Analysis

The company operates across three primary business segments: electrical goods, sugar, and agriculture. The electrical goods segment remained the dominant revenue contributor, generating ₹2,672.66 lakhs in Q3FY26 compared to ₹1,785.51 lakhs in Q3FY24. For the nine-month period, electrical goods revenue reached ₹7,567.02 lakhs, up from ₹5,190.36 lakhs in the previous year.

Segment Results for Q3FY26:

• Electrical Goods: ₹181.62 lakhs profit (vs. ₹183.96 lakhs in Q3FY24)
• Sugar Division: ₹8.12 lakhs loss (vs. ₹21.05 lakhs loss in Q3FY24)
• Agriculture: ₹1.76 lakhs profit (vs. ₹4.93 lakhs loss in Q3FY24)

Operational Challenges and Auditor Observations

The company's sugar mill operations remain suspended due to prolonged operational challenges and heavy losses. The statutory auditors, K.C. Bhattacharjee & Paul, issued a qualified opinion regarding this matter, suggesting that assets, liabilities, and expenses related to the sugar mill should be classified as discontinued operations rather than continuing business operations.

Management maintains that the sugar division represents a core business segment and continues exploring various options to resume operations once adequate working capital arrangements are secured. The company has not recognized any impairment provisions for the sugar division's property, plant, and equipment during Q3FY26.

Financial Position and Capital Structure

Khaitan India Limited maintains a stable capital structure with paid-up equity share capital of ₹475.00 lakhs, consisting of shares with a face value of ₹10 each. The company's reserves and surplus stood at ₹2,577.47 lakhs as of December 31, 2025, compared to ₹1,903.36 lakhs in the previous year.

Total assets reached ₹7,132.68 lakhs, while total liabilities stood at ₹4,080.23 lakhs, resulting in a net worth of ₹3,052.46 lakhs. The company's financial results demonstrate resilience in its core electrical goods business while management continues addressing challenges in the sugar segment.

Regulatory Compliance and Publication

Pursuant to Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published its Q3FY26 financial results in newspapers on February 3, 2026. The results were published in The Echo of India (English edition) and Arthik Lipi (Bengali edition) to ensure compliance with regulatory requirements.

The complete financial results are available on stock exchange websites (BSE and NSE) and the company's official website at www.khaitan.com for stakeholder reference.

Khaitan Chemical has reported robust financial performance for the third quarter, showcasing significant improvements across all major financial parameters. The company demonstrated strong operational efficiency and revenue growth during the period.

Financial Performance Overview

The company's financial metrics for Q3 reflect substantial year-on-year improvements across the board:

Revenue Growth and Operational Excellence

Khaitan Chemical achieved revenue of ₹2.65 billion in Q3, marking a substantial 32.5% increase from ₹2 billion in the corresponding quarter of the previous year. This revenue expansion demonstrates the company's ability to scale its operations effectively and capture market opportunities.

The company's operational efficiency showed remarkable improvement, with EBITDA reaching ₹326 million compared to ₹108 million in Q3 of the previous year. This represents an impressive growth of over 200%, indicating enhanced cost management and operational leverage.

Profitability Enhancement

Net profit performance was particularly strong, with the company reporting ₹204 million compared to ₹126 million in the same quarter last year, representing a growth of approximately 62%. This improvement in bottom-line performance reflects the company's effective execution of its business strategy.

The EBITDA margin expansion from 5.41% to 12.25% year-on-year represents a significant improvement of 684 basis points, highlighting the company's enhanced operational efficiency and cost optimization measures during the quarter.