Lakshmi Electrical Control Systems Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, presenting a mixed performance with revenue growth offset by profitability challenges. The results were approved by the Board of Directors at their meeting held on January 30, 2026.

Financial Performance Overview

The company demonstrated strong revenue growth in Q3 FY26, with revenue from operations reaching ₹5,839.01 lakhs compared to ₹4,936.81 lakhs in Q3 FY25, marking an increase of 18.27%. Total income for the quarter stood at ₹5,959.67 lakhs versus ₹5,035.76 lakhs in the previous year.

Despite the revenue growth, the company reported a net loss of ₹105.33 lakhs in Q3 FY26 compared to a profit of ₹13.09 lakhs in the corresponding quarter of the previous year. The basic earnings per share turned negative at ₹4.29 compared to positive ₹0.53 in Q3 FY25.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the company maintained its growth trajectory with revenue from operations of ₹16,910.93 lakhs, up from ₹15,420.87 lakhs in the corresponding period last year, representing a 9.66% increase.

However, profitability remained under pressure with the company reporting a marginal net loss of ₹0.03 lakhs for the nine-month period compared to a profit of ₹76.87 lakhs in the previous year.

Segment-wise Performance

The Electricals segment continued to be the primary revenue contributor, generating ₹4,963.56 lakhs in Q3 FY26 compared to ₹4,324.11 lakhs in Q3 FY25. The Plastics segment showed significant growth with revenue of ₹909.69 lakhs versus ₹626.03 lakhs in the previous year.

All three business segments reported losses at the operational level in Q3 FY26, with the Plastics segment showing the highest loss of ₹81.44 lakhs.

Expense Analysis and Other Developments

Total expenses increased to ₹6,072.96 lakhs in Q3 FY26 from ₹5,022.84 lakhs in Q3 FY25. The major expense components included cost of materials consumed at ₹4,571.66 lakhs and employee benefits expense of ₹903.39 lakhs.

The company reported exceptional items of ₹1.74 lakhs in Q3 FY26, primarily related to the incremental impact of new Labour Codes notified by the Government of India on November 21, 2025. This impact consisted mainly of gratuity adjustments due to changes in wage definition under the consolidated labour laws.

The company's paid-up equity share capital remained unchanged at ₹245.80 lakhs with a face value of ₹10 per share. Total assets stood at ₹36,175.83 lakhs as of December 31, 2025, compared to ₹36,923.93 lakhs in the previous year.

Lakshmi Electrical Control Systems Limited (LECS) has announced its financial results for the second quarter ended September 30, 2025, revealing a mixed performance with revenue growth but a decline in profitability.

Revenue Growth

The company reported revenue from operations of ₹5,832.43 lakhs for Q2 FY2026, marking an increase from ₹5,342.13 lakhs in the corresponding quarter of the previous year. This represents a year-on-year growth of 9.18%. For the half-year period, revenue grew to ₹11,071.92 lakhs from ₹10,484.06 lakhs, showing a 5.61% increase.

Profit Decline

Despite the revenue growth, LECS experienced a significant drop in profitability. The profit for Q2 FY2026 declined to ₹48.26 lakhs, compared to ₹205.30 lakhs in Q2 FY2025, representing a substantial decrease of 76.49%. For the half-year period, profit fell sharply to ₹61.78 lakhs from ₹347.00 lakhs in the previous year, a decline of 82.20%.

Segment Performance

LECS operates across three segments: electricals, plastics, and wind power generation. The segment-wise performance for Q2 FY2026 is as follows:

The electricals segment remains the largest contributor to the company's revenue, while the plastics segment reported a loss for the quarter.

Financial Position

As of September 30, 2025, LECS reported total assets of ₹35,295.52 lakhs, with an equity base of ₹27,428.73 lakhs. The company's financial position appears stable, with a low debt-to-equity ratio.

Management Commentary

Nethra J.S. Kumar, Chairperson and Managing Director of LECS, stated, "While we are pleased with our revenue growth this quarter, we acknowledge the challenges that have impacted our profitability. We are implementing measures to improve operational efficiency and expect to see positive results in the coming quarters."

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on November 3, 2025. The company's statutory auditors have carried out a limited review of these results.

Investors and stakeholders should note that these results are unaudited and subject to limited review by the company's statutory auditors.