Shanthi Gears has reported a significant decline in its third quarter financial performance, with net profit falling substantially compared to the same period last year. The gear manufacturing company's latest quarterly results reflect challenging market conditions that impacted its bottom line performance.

Financial Performance Overview

The company's financial metrics for the third quarter show a marked deterioration in profitability compared to the previous year's corresponding period.

Quarter-on-Quarter Analysis

The third quarter results demonstrate the company's reduced profitability, with net profit declining by ₹10.10 crores year-on-year. This represents a substantial decrease of 38.4% compared to the same quarter in the previous fiscal year. The decline indicates operational challenges faced by the company during this reporting period.

Market Context

The reported financial performance reflects the current operating environment for Shanthi Gears. The company, which operates in the gear manufacturing sector, experienced reduced profitability during the third quarter. The year-on-year comparison highlights the significant impact on the company's earnings capacity during this period.

Financial Impact

The substantial decline in net profit from ₹26.30 crores to ₹16.20 crores represents a notable reduction in the company's quarterly earnings. This decrease of over one-third in net profit demonstrates the magnitude of the challenges faced during the quarter. The financial results indicate reduced operational efficiency or market pressures affecting the company's performance during this reporting period.

Shanthi Gears Limited has notified stock exchanges regarding a name change of its statutory auditors, following the firm's structural conversion to a Limited Liability Partnership format. The announcement was made on January 16, 2026, in compliance with regulatory disclosure requirements.

Auditor Name Change Details

The company's statutory auditors, M S K A & Associates, Chartered Accountants, have converted their business structure to a Limited Liability Partnership under the provisions of the Limited Liability Partnership Act, 2008. Following this conversion, the firm is now operating under the name M S K A & Associates LLP, Chartered Accountants.

Regulatory Compliance

Shanthi Gears Limited has fulfilled its disclosure obligations pursuant to Regulation 30 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company received information about the name change from the auditing firm on January 16, 2026, and promptly communicated this development to both the National Stock Exchange of India Limited and BSE Limited.

The disclosure also complies with SEBI Circular SEBI/HO/CFD/CFD-PoD1/P/CIR/2023/123 dated July 13, 2023, which mandates specific information requirements for such announcements. The company has requested both stock exchanges to update their records with the new auditor name.

Corporate Communication

The formal intimation was signed by Walter Vasanth P J, Company Secretary and Compliance Officer of Shanthi Gears Limited. The communication was transmitted through the respective electronic platforms of both exchanges - NEAPS for NSE and BSE Listing Centre for BSE. This name change represents an administrative update following the auditing firm's business structure modification, with no change in the actual auditing personnel or services provided to the company.