Magnum Ventures Limited announced its unaudited standalone and consolidated financial results for the quarter ended December 31, 2025, showcasing a mixed performance amid strategic financial restructuring initiatives.

Financial Performance Overview

The company's operational performance for Q3FY26 reflected challenging market conditions with revenue declining compared to the previous quarter.

For the nine months ended December 31, 2025, the company reported total income of ₹33,710.18 lakhs compared to ₹27,784.25 lakhs in the corresponding period of the previous year, representing growth in the year-to-date performance.

Segment-wise Performance

The company operates through two primary business segments - Paper and Hotel operations.

The Paper segment showed a decline from the previous quarter but remained relatively stable compared to the same quarter last year. The Hotel segment demonstrated sequential growth, increasing from ₹2,125.62 lakhs in Q2FY26 to ₹2,761.61 lakhs in Q3FY26.

Strategic Financial Initiatives

During the quarter, Magnum Ventures undertook several significant financial restructuring measures:

Key Financial Metrics

The company's financial ratios for Q3FY26 showed:

Regulatory and Legal Matters

The company continues to address regulatory challenges, including a SEBI penalty matter that remains under appeal before the Securities Appellate Tribunal, with the next hearing scheduled for February 18, 2026. Additionally, the company has ongoing litigation with Bank of Baroda regarding ₹300 lakhs, with the matter listed for hearing on April 4, 2026.

Auditor's Observations

The independent auditor's limited review report highlighted several key observations:

Warrant Expiry

The company's 75,00,000 convertible warrants issued on June 5, 2024, expired on December 4, 2025, as warrant holders did not exercise their conversion option within the prescribed 18-month period. Consequently, the company forfeited the 25% money received against these warrants.

Magnum Ventures Limited has received a significant GST demand notice from tax authorities, as disclosed in a regulatory filing. The company informed stock exchanges about an order issued under Section 73 of the SGST Act, highlighting compliance challenges in the current tax environment.

GST Demand Details

The regulatory order was issued by Corporate Circle-I, Ghaziabad Zone-I under the SGST Act. Key details of the demand are presented below:

Nature of Alleged Violation

The GST authorities have alleged that Magnum Ventures improperly availed Input Tax Credit (ITC) based on auto-populated data in GSTR-2A on the GST Portal. The specific contravention relates to purchases from suppliers who had filed their GSTR-1 returns but failed to submit corresponding GSTR-3B returns.

This type of violation typically occurs when companies claim input tax credits based on supplier invoices that appear in their GSTR-2A, without verifying whether the supplier has actually deposited the tax with the government through GSTR-3B filing.

Company's Assessment and Impact

Magnum Ventures has assessed the potential impact of this regulatory action on its business operations:

The company has explicitly stated that despite the substantial monetary demand, there will be no material impact on its operations. This suggests that Magnum Ventures either has adequate financial resources to address the demand or believes it has strong grounds to contest the order.

Next Steps

While the company has not disclosed its specific response strategy, such GST demands typically allow for appeals or representations before higher authorities. Companies often contest such orders by providing additional documentation or clarifications regarding the disputed transactions. The final resolution may involve negotiations with tax authorities or formal appeal proceedings.