SBEC Systems (India) Limited has reported challenging financial results for the third quarter of FY26, marking a significant shift from profitability to losses compared to the previous year. The company's performance reflects operational difficulties during the quarter ended December 31, 2025.

Financial Performance Overview

The company's quarterly results demonstrate a stark contrast to the previous year's performance across key financial metrics:

Revenue and Profitability Analysis

SBEC Systems experienced a substantial decline in total income, falling from Rs 127.80 lakhs in Q3 FY25 to Rs 80.22 lakhs in Q3 FY26. This revenue contraction significantly impacted the company's bottom line, resulting in a net loss of Rs 28.85 lakhs compared to a net profit of Rs 56.16 lakhs in the corresponding quarter of the previous fiscal year.

The company's earnings per share reflected this poor performance, turning negative at Rs (0.29) from a positive Rs 0.56 in Q3 FY25. The comprehensive income for the period also showed a loss of Rs 28.85 lakhs, indicating no other comprehensive income items to offset the operational losses.

Nine-Month Performance

For the nine-month period ended December 31, 2025, SBEC Systems reported:

Corporate Governance and Compliance

The financial results were prepared in accordance with Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013. The Audit Committee reviewed and recommended these results, which were subsequently approved by the Board of Directors in their respective meetings held on February 10, 2026.

The company maintains its equity share capital at Rs 1000.00 lakhs, with no changes from the previous year. The detailed quarterly financial results are available on the BSE website at www.bseindia.com and the company's website at www.sbecsystems.in .

Regulatory Compliance

SBEC Systems published these unaudited financial results in compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were published in Financial Express (English) and Hari Bhoomi (Hindi) newspapers on February 11, 2026, ensuring proper disclosure to stakeholders and the investing public.

SBEC Systems (India) Limited has addressed recent compliance issues by paying fines imposed by the Bombay Stock Exchange (BSE) for violations of SEBI listing regulations. The company faced penalties for multiple infractions, including late submissions and non-compliance with disclosure requirements.

Compliance Violations and Fines

The BSE identified several areas of non-compliance:

1. Shareholding Pattern Submission (Regulation 31): SBEC Systems failed to submit shareholding patterns within the prescribed period for a specific quarter. This violation incurred a fine of Rs. 2,000.00 per day.

2. Board Meeting Intimations (Regulation 29(2)/29(3)): The company was penalized for delays in furnishing prior intimation about board meetings.

3. Voting Results Submission (Regulation 44(3)): SBEC Systems failed to submit voting results within the stipulated timeframe.

The total fine imposed, including 18% GST, amounted to Rs. 22,360.00.

Company's Response

The Board of Directors of SBEC Systems has taken note of these non-compliance issues. In a statement, the company acknowledged the violations and committed to ensuring future adherence to SEBI regulations. The fines have been paid within the prescribed timeline to avoid further penalties.

Potential Consequences

The BSE has warned that continued non-compliance could result in more severe actions, including:

• Freezing of the entire shareholding of the promoter in the entity
• Potential transfer to the Z group (a category for non-compliant companies)
• Possible suspension of trading of the company's equity shares

Other Corporate Developments

In addition to addressing these compliance issues, SBEC Systems has reported several other corporate developments:

1. The company has filed a Capital Reduction Scheme with the National Company Law Tribunal (NCLT) in New Delhi. The matter is currently adjourned pending a report from the Registrar of Companies (ROC).

2. SBEC Systems is involved in an ongoing dispute related to a SEBI order concerning the promoter group of SBEC Sugar Limited. As per a Supreme Court order, the company made a public announcement to acquire shares of the target company.

3. The company has reported unaudited financial results for a recent quarter and six-month period, which have been reviewed by the Audit Committee and approved by the Board of Directors.

These developments highlight the regulatory and corporate challenges SBEC Systems is currently navigating. The company's management has expressed its commitment to improving compliance and addressing ongoing legal and financial matters.