Paul Merchants Limited Reports Q3FY26 Results with Revenue Decline of 33.4%
Paul Merchants Limited reported Q3FY26 standalone revenue of ₹49,925.02 lakhs, down 33.4% from ₹74,925.02 lakhs in Q3FY25. Net profit declined to ₹3.92 lakhs from ₹16.38 lakhs. For nine months, revenue was ₹158,389.00 lakhs versus ₹275,049.06 lakhs previously, while net profit increased to ₹1,289.59 lakhs from ₹538.57 lakhs. The company received a ₹5.00 lakhs FEMA penalty recorded as exceptional items.
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Paul Merchants Limited has announced its unaudited financial results for the third quarter and nine months ended December 31, 2025. The company's board of directors approved these results in their meeting held on February 12, 2026, following review by the audit committee on February 11, 2026.
Financial Performance Overview
The company's standalone financial performance showed a notable decline in the third quarter of FY26. Revenue from operations dropped significantly compared to the previous year, while profitability remained under pressure.
| Metric | Q3FY26 | Q3FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹49,925.02 lakhs | ₹74,925.02 lakhs | -33.4% |
| Total Revenue | ₹50,338.05 lakhs | ₹75,376.26 lakhs | -33.2% |
| Net Profit | ₹3.92 lakhs | ₹16.38 lakhs | -76.1% |
| Basic EPS | ₹0.13 | ₹0.53 | -75.5% |
Nine-Month Performance
For the nine-month period ended December 31, 2025, the company reported revenue from operations of ₹158,389.00 lakhs compared to ₹275,049.06 lakhs in the corresponding period of the previous year. Net profit for the nine-month period reached ₹1,289.59 lakhs, showing an increase from ₹538.57 lakhs in the previous year.
| Parameter | 9M FY26 | 9M FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹158,389.00 lakhs | ₹275,049.06 lakhs | -42.4% |
| Net Profit | ₹1,289.59 lakhs | ₹538.57 lakhs | +139.4% |
| Basic EPS | ₹41.82 | ₹17.46 | +139.5% |
Segment-wise Performance
The company operates across three main segments: Forex, Travel, and Money Transfer. The Forex segment contributed ₹49,798.52 lakhs to total revenue in Q3FY26, while the Travel segment generated ₹154.55 lakhs and Money Transfer segment contributed ₹7.55 lakhs.
Consolidated Results
On a consolidated basis, the company reported revenue from operations of ₹50,479.25 lakhs for Q3FY26. The consolidated results include the financial performance of three wholly owned subsidiaries: Paul Merchants Finance Private Limited, Paul Merchants Realtors Private Limited, and Paul Infotech Private Limited.
Regulatory Matters
The company received an order dated October 6, 2025, from the Directorate of Enforcement, New Delhi, imposing a cautionary penalty of ₹5.00 lakhs under Section 13(1) of FEMA, 1999. This penalty was for alleged contravention of Section 10(5) of FEMA read with RBI KYC Master Directions. The amount has been recorded under exceptional items, with management stating there is no material effect on the company's financial or operational activities.
Corporate Structure Updates
During the quarter, Paul Merchants Realtors Private Limited became a partner in several LLPs for real estate development activities. The subsidiary also issued and allotted 2,85,00,000 equity shares of ₹10 each at a premium of ₹1 per share, aggregating to ₹31,35,00,000 on a rights issue basis to Paul Merchants Limited.
Auditor's Review
The statutory auditors, Rajiv Goel and Associates, conducted a limited review of both standalone and consolidated financial results and expressed an unmodified opinion. The results comply with Indian Accounting Standards and SEBI listing regulations.
Historical Stock Returns for Paul Merchants
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.66% | -2.04% | -3.27% | -25.96% | -40.69% | -59.47% |
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