Regaal Resources Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, demonstrating robust operational performance despite facing regulatory challenges. The company, primarily engaged in manufacturing maize starch and its derivatives along with maize trading, reported significant revenue growth during the quarter.

Financial Performance Overview

The company's quarterly performance showed strong top-line growth with revenue from operations reaching Rs. 3,229.70 million in Q3FY26, marking a substantial increase of 25.55% compared to Rs. 2,572.28 million in Q3FY25. Sequential growth was modest at 0.92% from the previous quarter's Rs. 3,200.23 million.

Nine-Month Performance

For the nine-month period ended December 31, 2025, Regaal Resources maintained strong momentum with revenue from operations of Rs. 8,895.62 million compared to Rs. 6,566.23 million in the corresponding period of the previous year, representing growth of 35.47%. Net profit for the nine-month period stood at Rs. 390.25 million compared to Rs. 364.87 million in the previous year, showing an increase of 6.95%.

Exceptional Item Impact

The company reported an exceptional item of Rs. 66.57 million during the quarter related to SGST subsidy reversal. This arose from subsidy claimed under the Bihar Industrial Promotion Policy where certain distributors utilized SGST credits inappropriately for IGST payments on interstate sales. While Rs. 104.64 million is recoverable from distributors due to agreement breaches, the company prudently provided for the balance amount as an exceptional charge.

Cost Structure and Margins

Total expenses for Q3FY26 increased to Rs. 2,992.61 million from Rs. 2,378.25 million in Q3FY25. Key expense components included:

• Cost of materials consumed: Rs. 1,301.69 million
• Purchases of stock-in-trade: Rs. 1,427.95 million
• Employee benefits expense: Rs. 80.42 million
• Finance costs: Rs. 68.75 million

The company benefited from favorable inventory changes of Rs. 304.82 million during the quarter.

IPO Proceeds Utilization

Regaal Resources completed its IPO in August 2025, raising Rs. 2,099.93 million through fresh issue and Rs. 960.02 million through offer for sale. The utilization of net IPO proceeds shows significant progress:

Regulatory Compliance

The company has assessed the impact of the four Labour Codes notified by the Government of India on November 21, 2025. An incremental impact of Rs. 4.55 million has been disclosed under Employee Benefit Expenses. The financial results were prepared in accordance with Ind AS 34 and reviewed by the Audit Committee before Board approval on February 10, 2026.

Regaal Resources Limited recently faced a search operation conducted by the Directorate General of GST Intelligence (DGGI). The company has provided clarification regarding the outcome of this investigation and its subsequent actions.

Search Operation Details

The DGGI conducted a search operation at Regaal Resources as part of its regulatory oversight activities. Such operations are typically undertaken by tax authorities to verify compliance with GST regulations and investigate potential discrepancies in tax filings.

Company's Response and Outcome

Following the search operation, Regaal Resources has confirmed that no formal order or penalty was imposed against the company by the DGGI. This indicates that the investigation did not result in any punitive measures or legal sanctions.

Voluntary Tax Payment

Despite the absence of any formal orders or penalties, Regaal Resources proactively made a voluntary tax payment of ₹8.90 million. This voluntary payment demonstrates the company's commitment to maintaining transparency and ensuring full compliance with tax regulations.

Regulatory Compliance

The company's decision to make a voluntary payment following the DGGI search operation reflects its approach toward regulatory compliance. By addressing any potential tax obligations voluntarily, Regaal Resources has taken steps to maintain its standing with tax authorities and ensure adherence to GST requirements.