Satchmo Holdings Limited announced its Q3FY26 quarterly results for the quarter ended December 31, 2025, showcasing a remarkable financial turnaround. The company reported exceptional performance with significant improvements across key financial metrics, driven primarily by successful debt settlements and strategic divestments.

Financial Performance Overview

The company's standalone financial results demonstrated extraordinary improvement in the third quarter of FY26:

For the nine-month period ended December 31, 2025, the company achieved a profit after tax of Rs 104,690 lakhs compared to Rs 2,545 lakhs in the corresponding period of the previous year.

Exceptional Items Drive Performance

The exceptional performance was primarily attributed to exceptional items totaling Rs 101,354 lakhs, which included:

• Reversal of impairment provisions no longer required: Rs 2,350 lakhs
• Sundry balances written back: Rs 171 lakhs
• Reversal of disputed interest: Rs 18,718 lakhs
• Reversal of disputed principal amount: Rs 29,468 lakhs
• Reversal of corporate guarantee issued to subsidiaries: Rs 53,282 lakhs

These reversals were made possible through successful one-time settlement agreements with creditors.

Debt Settlement and Legal Resolution

Satchmo Holdings achieved significant milestones in resolving its financial obligations during the quarter. The company received a one-time settlement proposal from JCF ARC for Rs 7,000 lakhs, which was paid within the stipulated timeframe, resulting in the receipt of No Due Certificates. Additionally, the company had earlier received an OTS from HDFC Limited for Rs 4,590 lakhs, with a balance outstanding of Rs 1,554 lakhs after considering payments.

The National Company Law Tribunal, Bengaluru Bench, dismissed the Corporate Insolvency Resolution Process application filed by JCF Asset Reconstruction Company against the company. This resolution marked the end of insolvency proceedings that had been initiated in July 2024.

Strategic Divestments Completed

The company completed significant strategic divestments during the quarter:

Both subsidiaries have ceased to be part of the Satchmo Holdings group following these transactions.

Business Focus and Operations

The company is transitioning its business focus toward specific segments including service business of facilities, catering activities, and investment and trading in equities. As part of this strategic shift, the company has stepped back from certain real estate projects under development and transferred them to other developers through Memorandum of Understanding or Business Transfer Agreements.

Regulatory Compliance Improvements

Satchmo Holdings made significant progress in regulatory compliance during the quarter. The company deposited Rs 50.46 lakhs to the Income Tax Department and Rs 89.25 lakhs toward Provident Fund dues. The GST registration of the company has been reinstated and regularized, addressing previous compliance issues.

Satchmo Holdings Limited has incorporated a wholly owned subsidiary to expand its business operations into facility management services. The company announced the formation of Satchmo Services Private Limited on January 21, 2026, in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Subsidiary Details and Capital Structure

The newly incorporated subsidiary operates under the Corporate Identification Number U82990KA2026PTC214612 and has been established with specific capital parameters:

Business Focus and Operations

Satchmo Services Private Limited has been incorporated to promote facility management services, including business support services and combined facilities support services. The subsidiary will operate in the service industry sector, representing a strategic expansion for the parent company.

Investment and Shareholding Structure

Satchmo Holdings Limited made an initial investment through NEFT bank transfer to establish the subsidiary:

Management and Regulatory Framework

The subsidiary has been established with Mr. Ramesh Karur Raghavendran and Mr. Pradeep Narayan as the first directors. The registered office is located at No. 110, C Wing, Andrews Building, Level 1, M G Road, Bengaluru-560 001, Karnataka, India.

The company will require regulatory approvals from Private Security Agency Licensing Portal, PSARA, and other applicable authorities as needed for its operations. Since this is a newly incorporated entity, no historical turnover data is available.

Corporate Compliance

The incorporation follows the company's earlier communication dated January 15, 2025, and complies with SEBI Circular No CIR/CFD/CMD/4/2015 dated September 09, 2015. As a wholly owned subsidiary, the initial subscription does not fall within related party transaction requirements under the regulatory framework.