Rama Petrochemicals Limited has announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, revealing continued operational challenges with widened losses despite some revenue improvements in the nine-month period.

Quarterly Financial Performance

The company's standalone performance for Q3FY26 showed a deterioration in profitability metrics compared to the previous year. Revenue from operations remained relatively stable with marginal growth, while expenses continued to pressure the bottom line.

Nine-Month Performance Analysis

The nine-month period ended December 31, 2025, presented a mixed picture with significant revenue growth but proportionally higher losses. The company's year-to-date performance reflected operational scaling challenges.

Cost Structure and Operational Challenges

The company's expense profile reveals significant structural challenges, with finance costs representing the largest component of total expenses. Employee benefit expenses and other expenditures also contributed substantially to the overall cost burden.

Key Expense Components (Q3FY26):

• Finance Cost: ₹160.81 lacs (82.21% of total expenses)
• Employee Benefits: ₹17.72 lacs
• Other Expenditure: ₹14.19 lacs
• Purchase of Stock-in-Trade: ₹2.54 lacs

Consolidated Results

The consolidated financial results, which include the subsidiary Rama Capital and Fiscal Services Private Limited, showed similar trends with marginally better performance metrics. Consolidated net loss for Q3FY26 stood at ₹184.50 lacs compared to ₹177.06 lacs in Q3FY25.

Auditor Observations and Corporate Governance

The statutory auditors Khandelwal & Mehta LLP issued a qualified conclusion regarding the company's treatment of ₹185.00 lacs payment towards release of collateral securities as 'Other Financial Assets'. The auditors noted this treatment is not in accordance with generally accepted accounting principles, resulting in higher retained earnings by ₹185.00 lacs as on December 31, 2025.

Capital Structure

The company's paid-up equity share capital increased to ₹1,172.42 lacs as of December 31, 2025, from ₹1,046.94 lacs in the corresponding period of the previous year, indicating capital infusion during the period.

The Board of Directors approved these results in their meeting held on January 28, 2026, with the Audit Committee having reviewed the financial statements prior to board approval.

Rama Petrochemicals Limited has completed the conversion of 15,96,450 warrants into equity shares on January 23, 2026, through a circular resolution passed by its Board of Directors. The conversion represents the second tranche of warrant conversions by the company, raising ₹119.73 crores from promoter group entities.

Warrant Conversion Details

The conversion was executed at an exercise price of ₹7.50 per warrant, which represents 75% of the original warrant issue price of ₹10.00 per warrant. Each converted warrant resulted in the allotment of one equity share with a face value of ₹10.00.

Allottee Details

The warrant conversion was completed by two promoter group entities, both exercising their conversion rights under the SEBI ICDR Regulations, 2018.

Capital Structure Impact

The warrant conversion has resulted in a significant increase in the company's paid-up equity share capital. The newly allotted equity shares rank pari-passu with existing equity shares in all respects, including dividend rights.

Regulatory Compliance

The allotment was conducted in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company had initially allotted these warrants on March 21, 2025, with warrant holders paying 25% of the issue price (₹2.50 per warrant) at the time of allotment. The current conversion involved payment of the remaining 75% of the issue price.

The conversion follows the company's previous intimation letters dated March 21, 2025, and March 26, 2025, regarding the warrant allotment process. All regulatory requirements under the SEBI Master Circular dated November 11, 2024, have been fulfilled as part of this preferential allotment process.