Nettlinx Limited announced its unaudited financial results for the quarter ended December 31, 2025, showing a significant decline in revenue and profitability compared to the previous year. The ISP services provider reported total income of ₹323.60 lakhs for Q3 FY26, marking a substantial decrease from the corresponding period last year.

Financial Performance Overview

The company's financial performance for Q3 FY26 showed mixed results with revenue contraction but maintained operational efficiency in certain areas.

The company's income from operations declined significantly to ₹285.99 lakhs from ₹724.02 lakhs in Q3 FY25. However, other income showed a remarkable increase to ₹37.61 lakhs from ₹0.29 lakhs, providing some offset to the operational revenue decline.

Expense Management and Profitability

Nettlinx demonstrated effective cost management during the quarter, with total expenses reducing to ₹259.64 lakhs from ₹462.26 lakhs in the previous year. Key expense categories showed the following trends:

• Cost of Access Charges, License Fees and Network Equipment: ₹98.75 lakhs (vs ₹141.10 lakhs)
• Employee benefits expense: ₹65.59 lakhs (vs ₹77.10 lakhs)
• Finance costs: ₹18.78 lakhs (vs ₹30.99 lakhs)
• Administrative and Other expenses: ₹53.69 lakhs (vs ₹189.68 lakhs)

The company maintained profitability with a net profit of ₹56.34 lakhs, though this represented a 69.3% decline from ₹183.23 lakhs in Q3 FY25. Earnings per share stood at ₹0.23 compared to ₹0.76 in the corresponding quarter last year.

Nine-Month Performance and Corporate Developments

For the nine-month period ended December 31, 2025, Nettlinx reported a net loss of ₹501.55 lakhs compared to a profit of ₹432.28 lakhs in the previous year. Total income for the nine-month period was ₹940.40 lakhs versus ₹1,669.39 lakhs in the corresponding period of FY25.

The board meeting held on January 28, 2026, approved the incorporation of a wholly owned subsidiary named COMPAL Limited, subject to approval from the Registrar of Companies. This strategic move indicates the company's expansion plans despite current financial challenges.

Consolidated Results and Subsidiary Performance

On a consolidated basis, the company reported a net loss of ₹31.03 lakhs for Q3 FY26 compared to a profit of ₹671.01 lakhs in Q3 FY25. Consolidated total income was ₹522.50 lakhs versus ₹1,592.58 lakhs in the previous year. The consolidated results include performance from subsidiaries including Nettlinx Realty Private Limited, Nettlinx Inc USA, and Nettlinx Technologies Private Limited.

Regulatory Compliance and Outlook

The financial results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on January 28, 2026. The statutory auditors M/s. Niranjan & Narayan, Chartered Accountants, provided an unmodified opinion on the financial results. The company continues to operate primarily in ISP services, which remains its only reportable business segment as per Ind-AS 108.

Nettlinx Limited , an Internet Service Provider (ISP), has reported a substantial loss for the quarter ended September 30, 2025. The company's financial results, approved by the Board of Directors on November 8, 2025, reveal a challenging period marked by significant losses and a major divestment.

Financial Performance

Nettlinx Limited posted a standalone loss of Rs. 509.66 lakhs for the quarter, a stark contrast to the profit of Rs. 212.66 lakhs recorded in the corresponding quarter of the previous year. The half-year results also reflected this downturn, with a standalone loss of Rs. 576.26 lakhs compared to a profit of Rs. 169.06 lakhs in the previous year.

Key Financial Metrics

All figures in Rs. lakhs, except EPS

Subsidiary Divestment

A significant development during this period was the sale of Nettlinx's entire investment in its subsidiary, Sri Venkateswararao Green Power Projects Limited. This transaction, completed on August 6, 2025, resulted in a consolidated loss of Rs. 460.20 lakhs, which has been reported as an exceptional item. Following this divestment, Sri Venkateswararao Green Power Projects Limited ceased to be a subsidiary of Nettlinx Limited.

Operational Challenges

The company's administrative expenses included a provision for bad debts amounting to Rs. 131.78 lakhs during the quarter, indicating potential issues with revenue collection or customer creditworthiness.

Segment Focus

Nettlinx Limited continues to primarily engage in ISP provider services, which remains its sole reportable business segment as per Ind-AS 108.

Management Commentary

Rohith Loka Reddy, Managing Director of Nettlinx Limited, signed off on the financial results. However, no specific management commentary on the company's performance or future outlook was provided in the available information.

Conclusion

The second quarter of FY26 has been particularly challenging for Nettlinx Limited, with significant losses and a major subsidiary divestment. The company's performance in the coming quarters will be crucial to watch, as it navigates through these financial difficulties.