Ovobel Foods Limited announced its unaudited financial results for the third quarter ended December 31, 2025, showcasing a remarkable turnaround in profitability. The company reported a net profit of ₹277.82 lakhs compared to a net loss of ₹115.01 lakhs in the corresponding quarter of the previous fiscal year, marking a significant improvement in operational performance.

Strong Revenue Growth Drives Performance

The company's revenue from operations demonstrated robust growth, increasing by 44.9% year-on-year to ₹7,405.36 lakhs in Q3FY26 from ₹5,111.22 lakhs in Q3FY25. This substantial revenue expansion reflects the company's strengthened market position and operational efficiency.

Operational Efficiency and Cost Management

The company's total expenses increased to ₹7,337.24 lakhs in Q3FY26 from ₹5,493.85 lakhs in Q3FY25, primarily driven by higher cost of materials consumed at ₹5,504.81 lakhs compared to ₹4,528.85 lakhs in the previous year. Despite the increase in absolute costs, the company maintained healthy profit margins through effective operational management.

Employee benefit expenses rose to ₹434.24 lakhs from ₹314.73 lakhs, while depreciation and amortization expenses increased significantly to ₹117.72 lakhs from ₹59.22 lakhs in the corresponding quarter last year.

Nine-Month Performance Highlights

For the nine-month period ended December 31, 2025, Ovobel Foods demonstrated exceptional performance with net profit reaching ₹1,193.71 lakhs, representing a substantial increase of 272.2% from ₹320.76 lakhs in the same period of the previous year.

Earnings Per Share and Capital Structure

The company's earnings per share for Q3FY26 stood at ₹2.92 compared to a loss per share of ₹1.21 in Q3FY25. For the nine-month period, earnings per share improved dramatically to ₹12.56 from ₹3.38 in the corresponding period last year. The paid-up equity share capital remained stable at ₹950.08 lakhs, consisting of ordinary shares with a face value of ₹10 each.

Board Approval and Compliance

The Board of Directors of Ovobel Foods Limited approved these unaudited financial results at their meeting held on February 10, 2026, which commenced at 3:30 PM and concluded at 4:15 PM. The results were prepared in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and have been reviewed by the company's statutory auditors, ASA & Associates LLP. The company operates as a Food Industry segment, which is considered the only reportable segment by management.

Five acquirers have initiated an open offer for Ovobel Foods Limited, aiming to acquire a significant stake in the company. This move represents a notable development in the company's ownership structure and has implications for existing shareholders.

Open Offer Details

Key Points of the Offer

1. Escrow Account: The acquirers have demonstrated their commitment by depositing 100% of the required amount in an escrow account.

2. Independent Directors' Recommendation: The Committee of Independent Directors has evaluated the offer and deemed it fair and reasonable. They noted that the offer price complies with SEBI regulations.

3. Board Appointments: Three of the acquirers - Sharad M S, Syed Fahad, and Bhavihal Gurusiddappa Channappa - were appointed as additional directors on Ovobel Foods' board on December 11, 2020. This appointment preceded the open offer announcement.

4. Stock Listing and Trading Status: Ovobel Foods' shares are listed on the Bombay Stock Exchange (BSE). Under SEBI regulations, the stock is categorized as infrequently traded.

Implications for Shareholders

Existing shareholders of Ovobel Foods Limited now have the opportunity to tender their shares at Rs. 49.41 per share during the offer period. This open offer provides a potential exit route for shareholders who wish to divest their holdings.

The offer price and its compliance with SEBI regulations, as confirmed by the Independent Directors' Committee, suggest that it aligns with regulatory standards for fair valuation. However, shareholders should consider their own investment goals and market perspectives when deciding whether to participate in the offer.

Market Context

The infrequent trading status of Ovobel Foods' shares on the BSE indicates limited liquidity in the stock. This open offer might potentially impact the stock's trading pattern and liquidity in the short term.

Investors and market participants will likely monitor the outcome of this open offer closely, as it could lead to a significant change in the company's ownership structure and potentially influence its future direction.