Sarvamangal Mercantile Reports Net Loss of Rs 2.88 Lakh in Q3FY26
Sarvamangal Mercantile Company Limited reported a net loss of Rs 2.88 lakh for Q3FY26 compared to a profit of Rs 166.37 lakh in Q3FY25. Total income declined significantly to Rs 3.34 lakh from Rs 178.83 lakh year-over-year, while total expenses decreased to Rs 7.52 lakh from Rs 18.44 lakh. The company's other comprehensive income showed substantial losses due to fair value changes in equity investments, resulting in total comprehensive income of negative Rs 461.16 lakh for the quarter.
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Sarvamangal Mercantile Company Limited announced its unaudited financial results for the third quarter ended December 31, 2025, showing a shift from profitability to losses compared to the same period last year. The Board of Directors approved these results at their meeting held on February 11, 2026, following recommendations from the Audit Committee.
Financial Performance Overview
The company reported a net loss of Rs 2.88 lakh for Q3FY26, marking a significant decline from the net profit of Rs 166.37 lakh recorded in Q3FY25. This represents a complete reversal of the company's profitability position year-over-year.
| Financial Metric | Q3FY26 | Q3FY25 | Change |
|---|---|---|---|
| Total Income | Rs 3.34 lakh | Rs 178.83 lakh | -98.13% |
| Total Expenses | Rs 7.52 lakh | Rs 18.44 lakh | -59.22% |
| Profit Before Tax | Rs (4.18) lakh | Rs 160.39 lakh | Loss |
| Net Profit/(Loss) | Rs (2.88) lakh | Rs 166.37 lakh | Loss |
Revenue and Income Analysis
The company's total income declined dramatically to Rs 3.34 lakh in Q3FY26 from Rs 178.83 lakh in Q3FY25. This decline was primarily driven by a substantial reduction in other income, which fell to Rs 3.34 lakh from Rs 178.83 lakh in the corresponding quarter of the previous year. The company reported no revenue from operations during Q3FY26, similar to Q3FY25.
Expense Management
Total expenses decreased to Rs 7.52 lakh in Q3FY26 from Rs 18.44 lakh in Q3FY25, reflecting the company's cost management efforts. Key expense components included:
- Employee benefits expense: Rs 4.29 lakh (vs Rs 5.23 lakh in Q3FY25)
- Other expenses: Rs 3.22 lakh (vs Rs 4.37 lakh in Q3FY25)
- Finance costs: Rs 0.01 lakh (vs Rs 8.84 lakh in Q3FY25)
Nine-Month Performance
For the nine months ended December 31, 2025, Sarvamangal Mercantile reported a net profit of Rs 71.03 lakh compared to Rs 243.44 lakh in the corresponding period of the previous year. Total income for the nine-month period stood at Rs 121.21 lakh versus Rs 305.82 lakh in the previous year.
| Nine-Month Metrics | FY26 | FY25 | Change |
|---|---|---|---|
| Total Income | Rs 121.21 lakh | Rs 305.82 lakh | -60.37% |
| Net Profit | Rs 71.03 lakh | Rs 243.44 lakh | -70.83% |
| Basic EPS | Rs 28.53 | Rs 97.77 | -70.82% |
Other Comprehensive Income Impact
The company experienced significant other comprehensive income losses of Rs 458.28 lakh in Q3FY26, primarily due to net changes in fair value of investments in equity shares carried at fair value through other comprehensive income. This compares to a loss of Rs 3,458.86 lakh in Q3FY25. Consequently, total comprehensive income for Q3FY26 was negative Rs 461.16 lakh.
Earnings Per Share
Basic and diluted earnings per share for Q3FY26 stood at negative Rs 1.16 compared to positive Rs 66.82 in Q3FY25. The company maintained its paid-up equity share capital at Rs 24.90 lakh with a face value of Rs 10 per share.
Corporate Governance
The financial results were reviewed by statutory auditors Devpura Navlakha & Co., who provided an unmodified conclusion on the quarterly results. The Board meeting was conducted on February 11, 2026, from 3:30 PM to 4:30 PM, with Managing Director Namrata Somani and Company Secretary S. Venkatesan signing off on the results.
Historical Stock Returns for Sarvamangal Mercantile
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -100.00% | 0.0% | 0.0% | 0.0% | 0.0% | -100.00% |
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