Platinum Industries Reports Q2 Results with Fire-Related Exceptional Loss

Platinum Industries Limited has released its financial results for the quarter ended September 30, 2025, revealing a decline in profitability and disclosing a significant fire-related incident at one of its subsidiaries.

Financial Performance

The company reported a consolidated net profit of ₹115.00 crore for Q2, down from ₹143.00 crore in the same period last year. This represents a year-over-year decrease of approximately 19.6% in net profit.

Financial Metric	Q2 (Current Year)	Q2 (Previous Year)	Change
Net Profit	₹115.00 crore	₹143.00 crore	-19.6%
Revenue	₹984.00 crore	₹996.00 crore	-1.2%
EBITDA	₹136.00 crore	₹151.00 crore	-9.9%
EBITDA Margin	13.82%	15.16%	-1.34%

The company's revenue remained relatively stable at ₹984.00 crore, compared to ₹996.00 crore in the previous year, showing only a marginal decline of 1.2%.

Profitability Metrics

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) declined to ₹136.00 crore from ₹151.00 crore year-over-year, representing a decrease of 9.9%. The EBITDA margin compressed to 13.82% from 15.16%, indicating a reduction in operational efficiency.

Fire Incident and Exceptional Loss

The company disclosed a fire incident at the factory premises of its subsidiary, Platinum Polymers and Additives, which occurred on July 07, 2025. This incident resulted in losses amounting to ₹103.35 million. The company has recognized an insurance claim receivable of ₹98.19 million towards the estimated loss.

Auditor's Qualified Opinion

PKF Sridhar & Santhanam LLP, the company's statutory auditors, have issued a qualified opinion in their review report. The qualification is related to the fire incident and the subsequent insurance claim. As the insurance survey and related procedures are still in progress, the auditors were unable to determine if any adjustments are required to the carrying amount of the insurance receivable in the consolidated financial results.

Subsidiary Developments

The Board of Directors has approved a proposal for the issuance of fresh equity shares by Platinum Oleo Chemicals Private Limited (POCPL), a subsidiary of Platinum Industries Limited. The Board has stipulated that the parent company's shareholding in POCPL should not fall below 51% post-issuance. Specific details regarding the number of shares, issue price, and consideration will be disclosed upon completion of the allotment process.

Conclusion

While Platinum Industries has managed to maintain its revenue levels, the company faces challenges in maintaining profitability. The decrease in EBITDA and net profit, coupled with the margin compression, suggests that the company may be experiencing cost pressures or operational inefficiencies. The ongoing insurance claim process related to the fire incident at its subsidiary adds an element of financial uncertainty that investors and stakeholders will need to monitor closely in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.41%	+0.73%	-5.91%	-2.50%	-35.38%	+20.93%

Platinum Industries Limited , a company listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), has been penalized by the Reserve Bank of India (RBI) for non-compliance with foreign exchange regulations. The company disclosed this information in a regulatory filing on October 28, 2025.

Penalty Details

The RBI's Foreign Exchange Department imposed a fine of Rs 5.38 lakh on Platinum Industries for violating the Foreign Exchange Management Act (FEMA) Regulations, 2004. The specific violation pertained to the company's failure to submit Part I of Form ODI within the prescribed timelines when making an overseas direct investment (ODI) in its subsidiary.

Regulatory Disclosure

In compliance with SEBI regulations, Platinum Industries provided the following details about the RBI order:

Particulars	Details
Issuing Authority	Reserve Bank of India, Foreign Exchange Department (Mumbai)
Nature of Action	Compounding Order with penalty
Date of Receipt	October 28, 2025 (via email)
Violation Details	Failure to submit Part I of Form ODI within prescribed timelines for ODI in subsidiary
Penalty Amount	Rs 5,38,000 (Five Lakh Thirty Eight Thousand Only)

Company's Statement

Platinum Industries has stated that the penalty has no material impact on its financial position, operations, or other business activities. The company's management emphasized that this incident does not significantly affect their overall business performance.

Regulatory Compliance

This disclosure by Platinum Industries is in line with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It demonstrates the company's commitment to transparency in its dealings with regulatory authorities and shareholders.

The incident serves as a reminder of the importance of strict adherence to regulatory timelines and procedures, especially in matters related to foreign investments and exchange regulations. Companies engaging in overseas investments must ensure they fully comply with all FEMA regulations to avoid similar penalties.