Ramco Industries Limited announced its unaudited consolidated financial results for the third quarter ended December 31, 2025, demonstrating strong operational performance across all business segments. The Chennai-based diversified company reported robust revenue growth and enhanced profitability, with consolidated results showing significant improvement over the corresponding quarter of the previous year.

Consolidated Financial Performance

The company delivered impressive consolidated results for Q3FY26, with revenue from operations reaching ₹388.63 crores compared to ₹343.68 crores in the corresponding quarter of the previous year. This represents a growth of 13.1% year-on-year, reflecting the company's strong market position and operational efficiency.

Standalone Results Overview

On a standalone basis, the company reported revenue from operations of ₹305.29 crores in Q3FY26 compared to ₹272.17 crores in Q3FY25, marking growth of 12.2%. Standalone net profit after tax reached ₹16.59 crores versus ₹12.93 crores in the corresponding quarter last year, representing an increase of 28.3%.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the consolidated revenue from operations stood at ₹1,280.94 crores compared to ₹1,240.01 crores in the previous year, showing growth of 3.3%. Consolidated net profit after tax for the nine-month period reached ₹87.87 crores compared to ₹65.06 crores, representing an increase of 35.1%.

On a standalone basis, nine-month revenue from operations was ₹1,036.84 crores compared to ₹1,045.70 crores in the previous year, showing a marginal decline of 0.8%. However, standalone net profit after tax improved to ₹85.10 crores from ₹74.94 crores, marking growth of 13.5%.

Associates Performance Impact

A significant contributor to the consolidated performance was the share of net profit after tax from associates accounted for using the equity method. This contributed ₹90.38 crores in Q3FY26 compared to ₹73.27 crores in Q3FY25, representing an increase of 23.3%. For the nine-month period, associates contributed ₹130.76 crores compared to ₹80.12 crores in the previous year.

Capital Structure and Equity

The company maintained a stable capital structure with paid-up equity share capital of ₹8.66 crores, consisting of shares of Re.1 each. Other equity stood at ₹4,224.01 crores, reflecting the company's strong financial position and accumulated reserves.

Sequential Performance Trends

Comparing Q3FY26 with the previous quarter (Q2FY26), consolidated revenue from operations increased from ₹365.48 crores to ₹388.63 crores, showing sequential growth of 6.3%. However, consolidated net profit after tax decreased from ₹27.36 crores in Q2FY26 to ₹21.69 crores in Q3FY26.

On a standalone basis, revenue increased from ₹272.67 crores in Q2FY26 to ₹305.29 crores in Q3FY26, while net profit after tax decreased from ₹35.93 crores to ₹16.59 crores during the same period.

Ramco Industries Limited has successfully resolved a prolonged legal dispute with the West Bengal government regarding entry tax matters through the state's Settlement of Dispute (SOD) Scheme. The company announced the resolution in a regulatory filing dated January 30, 2026, marking the end of litigation that had been ongoing since 2013.

Background of the Dispute

The legal battle originated when the Government of West Bengal enacted "The West Bengal Tax on Entry of goods into Local Areas Act, 2012." Ramco Industries challenged the validity of this Act through writ petitions, arguing that the entry tax provisions were unconstitutional. Initially, the company received favorable judgment when a Single Judge passed an order on June 24, 2013, declaring the entry tax law as ultra vires and unconstitutional.

The case progressed through multiple judicial forums over the years. The West Bengal Taxation Tribunal passed an order on March 25, 2022, stating that the State of West Bengal lacked legislative competence to introduce Sections 5 and 6 (Entry tax) of the West Bengal Finance Act, 2017, declaring these provisions ultra vires and unconstitutional.

Recent Legal Developments

The litigation took a turn when the department filed an appeal with the High Court, which passed an order favoring the government on January 30, 2025. Ramco Industries received this order on February 3, 2025, and subsequently filed an appeal with the Supreme Court on April 29, 2025.

Settlement Through SOD Scheme

Recognizing the benefits of the West Bengal government's Settlement of Dispute Scheme, Ramco Industries opted to resolve the matter through this mechanism. The company submitted Form 1 on August 29, 2025, initiating the settlement process. The scheme offered significant advantages, including a 25% reduction in the disputed amount and complete waiver of interest and penalty charges.

The settlement process progressed smoothly with the company receiving Form 2 (Provisional Certificate) on multiple dates:

• September 11, 2025: for FY 2015-16 and FY 2016-17
• September 18, 2025: for AY 2013-14, FY 2014-15, and FY 2017-18

Final Resolution

Under the SOD Scheme provisions, if no Form 3 (Departmental Objection) is received within ninety days from Form 1 submission (by November 27, 2025), the issued Form 2 becomes final. Since no objections were raised, the litigation is now considered resolved.

Ramco Industries also successfully withdrew its case from the Supreme Court, with the court allowing the withdrawal and dismissing the Special Leave Petition as "not pressed" due to the company availing the remedy under the West Bengal Sales Tax Settlement of Dispute scheme.

Financial Benefits

Through the settlement scheme, Ramco Industries achieved significant cost savings. The company paid ₹2.21 crore representing 75% of the entry tax payable, while securing a benefit of ₹74 lakh (25% of the disputed amount). Additionally, the complete waiver of interest and penalty charges provided substantial financial relief, considering the interest liability had accumulated to ₹729.23 lakhs as of June 30, 2025.

The resolution of this long-standing litigation removes a significant contingent liability from the company's books and provides clarity on its tax obligations in West Bengal for the disputed period from June 2013 to June 2017.