Krystal Integrated Services Limited announced its unaudited consolidated financial results for the quarter and nine months ended December 31, 2025, alongside significant corporate developments approved by the Board of Directors on January 22, 2026.

Financial Performance Overview

The company delivered steady financial performance in Q3FY26, with consolidated operations showing resilience across its key business segments.

For the nine-month period ended December 31, 2025, the company reported consolidated revenue from operations of ₹9,123.37 million compared to ₹7,996.83 million in the corresponding period of the previous year, representing a growth of 14.09%. Net profit for the nine-month period stood at ₹455.02 million, marginally lower than ₹455.82 million in the previous year.

Segment-wise Performance

The company's business segments demonstrated varied performance during the quarter, with manpower services maintaining its position as the primary revenue contributor.

The catering services segment showed remarkable growth, with revenue increasing from ₹135.86 million in Q3FY25 to ₹398.37 million in Q3FY26. However, the IT enabled services segment experienced a decline from ₹93.30 million to ₹15.70 million during the same period.

Major Corporate Actions Approved

The Board of Directors approved several significant corporate initiatives during their meeting on January 22, 2026.

Qualified Institutions Placement (QIP)

The company received approval to raise funds through a QIP for an aggregate amount up to ₹300 crores. The QIP will be conducted in accordance with SEBI regulations and will involve issuance of equity shares to qualified institutional investors. The Board has constituted a QIP Committee to undertake all necessary actions in connection with the proposed fundraising, subject to applicable approvals.

Authorised Share Capital Increase

The Board approved an increase in authorised share capital from ₹15.00 crores to ₹19.00 crores. The enhanced capital structure will comprise 1,90,00,000 equity shares of ₹10 each, compared to the existing 1,50,00,000 equity shares. This increase requires consequential amendments to the Memorandum of Association and is subject to shareholder approval and other regulatory clearances.

Operational Highlights

The company's consolidated results include seven wholly-owned subsidiaries and one joint venture. Key subsidiaries showed mixed performance during the quarter:

• Krystal Gourmet Private Limited: Generated revenue of ₹405.91 million with net profit of ₹21.62 million
• Flame Facilities Private Limited: Reported revenue of ₹67.87 million with a net loss of ₹1.47 million
• Taskmaster Private Limited: Recorded minimal revenue of ₹0.22 million with a net loss of ₹3.70 million

The joint venture Krystal-Aqua chem JV contributed ₹0.36 million as Krystal Integrated Services' share of profit during the quarter.

Financial Position and Outlook

The company maintained a stable financial position with paid-up equity share capital of ₹139.72 million. Employee benefits expense, the largest cost component, stood at ₹2,273.74 million for Q3FY26 compared to ₹2,279.96 million in Q3FY25. The company's effective tax management resulted in total tax expenses of ₹23.52 million for the quarter, benefiting from excess provisions of earlier years amounting to ₹28.47 million.

The proposed corporate actions, including the QIP and capital increase, are subject to postal ballot approval from shareholders, with the notice to be communicated in due course. These initiatives position the company for potential expansion and enhanced operational capabilities in its core service segments.

Krystal Integrated Services Limited has incorporated a wholly owned subsidiary to execute a municipal waste management contract, marking a strategic expansion in its waste management operations. The company established Krystal Waste Work Prabhag F Private Limited on January 20, 2026, as a Special Purpose Vehicle (SPV) to fulfill contractual requirements with Vasai Virar Municipal Corporation.

Subsidiary Incorporation Details

The newly incorporated entity operates under specific financial and regulatory parameters designed for waste management operations:

Contract Background and Purpose

The subsidiary formation stems from a Letter of Acceptance No. 1895/2025 dated December 15, 2025, received from Vasai Virar Municipal Corporation. The contract encompasses door-to-door collection, segregation, and transportation of municipal solid waste, including street cleaning services and transportation to designated locations. The five-year agreement operates under Solid Waste Management Rules 2016 for Prabhag F area.

A key contractual condition required Krystal Integrated Services Limited to establish a new entity as an SPV, which would serve as the designated concessionaire for contract execution with the municipal corporation.

Business Scope and Operations

Krystal Waste Work Prabhag F Private Limited will operate within the waste management industry, focusing on comprehensive waste handling services. The subsidiary's business objectives include:

• Collection, segregation, transportation and disposal of biodegradable and recyclable solid waste
• Municipal waste, liquid waste, biomedical waste, hazardous waste and e-waste management
• City, beach, and industrial undertaking cleaning and maintenance
• Mechanical and manual road sweeping operations
• Waste-to-energy projects and waste processing facilities
• Carbon credit trading and selling activities

Corporate Structure and Leadership

The subsidiary maintains close ties with its parent company through shared leadership. Ms. Neeta Prasad Lad and Mr. Shubham Prasad Lad, who serve as Whole-time Directors of Krystal Integrated Services Limited and are promoters of the parent company, have been appointed as the first directors of the wholly owned subsidiary.

Regulatory Compliance

The incorporation follows Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The subsidiary has been incorporated in Maharashtra state, with the Certificate of Incorporation issued by the Central Registration Centre, Ministry of Corporate Affairs, confirming the establishment under the Companies Act, 2013.