Machhar Industries Limited announced its Q3FY26 financial results for the quarter ended December 31, 2025, demonstrating a remarkable turnaround in financial performance. The company reported a net profit of ₹28.95 crores compared to a loss of ₹7.91 crores in the corresponding quarter of the previous year, marking a significant improvement in profitability.

Financial Performance Overview

The company's revenue from operations grew by 21.24% year-on-year to ₹406.78 crores in Q3FY26 from ₹335.53 crores in Q3FY25. Total income including other income reached ₹411.05 crores compared to ₹339.29 crores in the previous year quarter.

Segment-wise Performance

The company operates across three key business segments, each contributing to the overall revenue growth. The transportation division emerged as the largest revenue contributor, generating ₹196.45 crores in Q3FY26 compared to ₹150.90 crores in Q3FY25. The explosives division reported revenue of ₹116.26 crores versus ₹79.35 crores in the previous year quarter, while the Adblue division contributed ₹94.07 crores against ₹105.29 crores in Q3FY25.

Operational Efficiency and Profitability

The company's profit before tax stood at ₹33.26 crores in Q3FY26 compared to a loss of ₹22.87 crores in Q3FY25. Total expenses increased to ₹377.79 crores from ₹362.17 crores, primarily driven by higher raw material consumption of ₹55.04 crores and other expenses of ₹275.52 crores. Employee benefit expenses decreased significantly to ₹35.03 crores from ₹55.53 crores in the previous year quarter.

Nine-Month Performance

For the nine-month period ended December 31, 2025, Machhar Industries reported revenue from operations of ₹1,113.39 crores compared to ₹1,166.68 crores in the corresponding period of the previous year. The company achieved a net profit of ₹42.50 crores for the nine-month period versus ₹7.54 crores in the previous year, demonstrating sustained improvement in operational performance.

Board Meeting and Compliance

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on January 20, 2026, which was adjourned and concluded on January 22, 2026. The company's statutory auditors, Ashok R Majethia & Co, provided an unmodified opinion on both standalone and consolidated financial results, confirming compliance with applicable accounting standards and regulatory requirements.

Machhar Industries Limited has announced its financial results for the second quarter ended September 30, 2025. The company's performance shows mixed results, with a decline in quarterly revenue but an improvement in half-yearly profit.

Q2 FY2026 Financial Highlights

Key Observations

1. Revenue Decline: The company's revenue from operations for Q2 FY2026 stood at Rs. 355.75 lakhs, down from Rs. 362.01 lakhs in the same quarter last year, indicating a slight decrease in top-line performance.

2. Increased Expenses: Total expenses for the quarter rose to Rs. 375.06 lakhs, up from Rs. 365.27 lakhs in Q2 FY2025, contributing to the pressure on profitability.

3. Quarterly Loss: Machhar Industries reported a net loss of Rs. 10.99 lakhs for Q2 FY2026, compared to a loss of Rs. 2.97 lakhs in the corresponding quarter of the previous year.

4. Half-Year Performance Improvement: Despite the quarterly setback, the company's half-yearly performance shows improvement. For H1 FY2026, Machhar Industries achieved a net profit of Rs. 22.52 lakhs, an increase from Rs. 8.75 lakhs in H1 FY2025.

5. EPS Impact: The basic earnings per share (EPS) for Q2 FY2026 was negative at Rs. 1.48, compared to negative Rs. 0.40 in the same quarter last year, reflecting the increased loss.

Management Actions and Disclosure

The board of directors of Machhar Industries Limited met on November 11, 2025, to consider and approve the unaudited financial results. The meeting, which commenced at 12:30 PM and concluded at 8:00 PM, also addressed other regular business matters.

In compliance with SEBI regulations, the company has confirmed that its statutory auditors, M/s. Ashok Majethia (Firm registration No. 032742W), have not expressed any modified opinion in their Limited Review Report for both standalone and consolidated unaudited financial results for the quarter ended September 30, 2025.

Conclusion

While Machhar Industries Limited faces challenges in its quarterly performance, the improved half-yearly results suggest potential for recovery. Investors and stakeholders may want to monitor the company's future quarters closely to assess whether this trend continues and how management addresses the current challenges in revenue and profitability.