Pratiksha Chemicals Limited announced its unaudited financial results for the quarter ended December 31, 2025, showing a turnaround to profitability despite a significant decline in revenue. The Board of Directors approved these results on February 5, 2026, following review by the Audit Committee.

Financial Performance Overview

The company's financial performance for Q3FY26 presents a mixed picture with profitability returning but operational revenue declining substantially.

Nine-Month Performance

For the nine months ended December 31, 2025, the company demonstrated significant improvement in profitability compared to the previous year.

Operational Highlights

The quarter witnessed minimal operational expenses totaling ₹4.37 lakhs compared to ₹221.07 lakhs in Q3FY25. Key expense components included:

• Cost of Material Consumed: ₹0.00 lakhs (vs ₹121.50 lakhs in Q3FY25)
• Employee Benefit Expense: ₹(0.27) lakhs (vs ₹25.39 lakhs in Q3FY25)
• Other Expenditure: ₹4.17 lakhs (vs ₹37.07 lakhs in Q3FY25)

Extraordinary Items and Asset Sale

The company recorded extraordinary items worth ₹8.62 lakhs in Q3FY26. Management disclosed that subsequent to the balance sheet date, shareholders approved a special resolution for the sale of a significant portion of company assets through an Extraordinary General Meeting. An impairment provision has been recognized under "Extraordinary Items" based on the anticipated realizable value of assets identified for sale, ensuring compliance with accounting standards and regulatory requirements.

Auditor Observations

The statutory auditors, Chandabhoy & Jassoobhoy, issued a qualified opinion noting that the company accounts for Gratuity and Leave encashment on cash basis, which is not in accordance with Ind AS-1 and Ind AS-19 requirements. The extent of non-compliance in monetary terms remains unascertainable.

Capital Structure

The company maintained its paid-up equity share capital at ₹557.03 lakhs with a face value of ₹10.00 per share throughout the reporting periods.

Pratiksha Chemicals Limited's board of directors has approved a comprehensive capital restructuring and strategic expansion plan during its meeting held on January 21, 2026. The meeting, which commenced at 7:00 PM and concluded at 8:00 PM, saw the approval of several significant corporate actions that will substantially transform the company's capital structure and business portfolio.

Major Capital Structure Enhancement

The board has approved a dramatic increase in the company's authorized share capital, expanding it from ₹5.57 crores to ₹32.00 crores. This expansion involves creating an additional 2,64,29,660 equity shares of ₹10.00 each, bringing the total authorized equity shares to 3,20,00,000.

Preferential Allotment Details

The company has approved a significant preferential allotment comprising both convertible warrants and equity shares. The total value of this allotment amounts to approximately ₹55.99 crores, with securities priced at ₹21.72 each (face value of ₹10.00 plus premium of ₹11.72).

The convertible warrants carry an 18-month conversion period from the date of allotment. Warrant holders must pay 25.00% of the warrant price at subscription, with the remaining 75.00% payable upon conversion. If warrants remain unexercised within the 18-month period, they will lapse and the amounts paid will be forfeited.

Strategic Acquisitions in Financial Services

The board has provisionally approved the acquisition of controlling stakes exceeding 51.00% in two companies operating in the debt management sector:

Rudra Debt Solutions Private Limited

• Incorporation Date: December 19, 2023
• CIN: U82910DL2023PTC424038
• Business Focus: Claims management, payment collection, receivables management, NPA resolution, and debt recovery services
• Financial Performance:
  • FY 2023-24: ₹7,87,26,497
  • FY 2024-25: ₹10,65,31,697

Right Debt Management Services Private Limited

• Incorporation Date: March 13, 2015
• CIN: U74140GJ2015PTC082571
• Business Focus: Debt management consultancy, financial advisory services, and institutional finance assistance
• Financial Performance:
  • FY 2022-23: ₹27,178.02
  • FY 2023-24: ₹57,19,557
  • FY 2024-25: ₹65,24,842

Allottee Distribution and Shareholding Impact

The preferential allotment includes a diverse group of public investors, with the equity shares being distributed among 37 allottees and convertible warrants among 58 allottees. Notable allocations include significant stakes to individuals such as Rajnik Madhabhai Paghadal and Virani Jayeshkumar, each receiving 23,02,030 equity shares representing 7.34% of post-allotment holding.

The warrant allottees include various Limited Liability Partnerships (LLPs) such as Eknatheswar Multitrade LLP, Kalaratri Multi Tradeline LLP, and Vintage Diamond LLP, each receiving substantial warrant allocations. The distribution demonstrates the company's strategy to broaden its investor base while raising substantial capital.

Regulatory Compliance and Next Steps

The preferential allotment will be conducted in accordance with Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The company has scheduled an Extraordinary General Meeting for February 20, 2026, to seek shareholder approval for all proposed resolutions.

The acquisitions are structured as non-related party transactions and are expected to provide the company with strategic expansion opportunities in the financial services sector, particularly in debt management and recovery services. The indicative completion timeline for the acquisitions is set at nine months from approval.