Sharika Enterprises Limited , an engineering, procurement, and construction company, has reported a deterioration in its financial performance for the quarter ended September 30, 2025. The company's latest financial results, approved by its Board of Directors on November 14, 2025, reveal significant challenges in both revenue generation and profitability.

Financial Performance Highlights

Key Takeaways

1. Widening Losses: Sharika Enterprises' net loss expanded by 40.9% year-over-year, reaching ₹273.60 lakhs in Q2 FY26 compared to ₹194.21 lakhs in the same period last year.

2. Revenue Decline: The company experienced a significant drop in revenue from operations, which fell by 15.8% to ₹2,062.02 lakhs from ₹2,448.48 lakhs in the previous year.

3. Earnings Per Share: The basic earnings per share (EPS) deteriorated to ₹(0.89) from ₹(0.64), reflecting the impact of increased losses on shareholder value.

4. Consolidated Impact: The financial performance deterioration was observed across both standalone and consolidated results, indicating widespread challenges in the company's operations.

Corporate Governance

The un-audited financial results for Q2 FY26 were reviewed by the Audit Committee and subsequently approved by the Board of Directors. This process, along with the timely disclosure to the BSE Limited, demonstrates Sharika Enterprises' commitment to regulatory compliance and transparency.

Outlook

The significant increase in losses and decrease in revenue suggest that Sharika Enterprises is facing challenges in its operating environment. As the engineering, procurement, and construction sector often experiences cyclical trends and project-based revenue patterns, investors and stakeholders may need to closely monitor the company's future announcements for any strategic initiatives or market factors that could influence its financial trajectory.

Sharika Enterprises Limited (SEL) has announced securing a new order worth Rs 7.73 crore from UP Power Transmission Corporation Limited (UPPTCL). This contract highlights the company's involvement in the power transmission sector and its ability to secure projects from major public entities.

Order Details

SEL has received an order from UPPTCL for a power transmission project. The contract involves design, detailed engineering, manufacture, and supply of 132KV cables along with accessories for underground power transmission infrastructure.

Project Specifics

• Cable laying
• Erection of joints and terminations
• Final testing and commissioning | | Project Length | Approximately 1.7 KM of 132KV DC Sonik-Sarain Katiyan/Murtazanagar line |

Client Background

UPPTCL is a state-owned power transmission company responsible for the transmission of electricity in Uttar Pradesh. The collaboration between SEL and UPPTCL indicates the trust placed in the company's capabilities by a significant public utility entity.

Corporate Governance

In line with regulatory requirements, SEL has confirmed that neither the promoters nor group companies have any interest in the contracting entity. This clarification ensures transparency and indicates that the contract is not a related party transaction.

Market Implications

This order from UPPTCL could have implications for Sharika Enterprises Limited:

1. Enhanced Portfolio: The contract adds to SEL's project portfolio in the power transmission sector.
2. Revenue Contribution: The order value of over Rs 7.73 crore may contribute to the company's revenue.
3. Sector Positioning: Securing a contract with UPPTCL may strengthen SEL's position in the power transmission infrastructure space.
4. Technical Expertise: The project, involving underground power transmission infrastructure, showcases SEL's technical capabilities.