Shekhawati Industries Reports Q3FY26 Loss of ₹51.28 Lakhs Against Prior Year Profit

Shekhawati Industries Limited has announced its unaudited financial results for the quarter ended December 31, 2025, revealing a challenging performance during Q3FY26. The company reported a net loss of ₹51.28 lakhs compared to a profit of ₹151.20 lakhs in the corresponding quarter of the previous year, marking a significant deterioration in financial performance.

Financial Performance Overview

The company's total income declined substantially to ₹219.10 lakhs in Q3FY26 from ₹1,567.81 lakhs in Q3FY25. Revenue from operations stood at ₹213.62 lakhs, comprising various income streams including job work income of ₹167.74 lakhs and other operating revenue of ₹0.55 lakhs. The company also recorded other income of ₹5.47 lakhs during the quarter.

Financial Metric	Q3FY26	Q3FY25	Change
Total Income	₹219.10 lakhs	₹1,567.81 lakhs	-85.97%
Revenue from Operations	₹213.62 lakhs	₹1,528.59 lakhs	-86.02%
Net Profit/(Loss)	(₹51.28 lakhs)	₹151.20 lakhs	-133.91%
Total Expenses	₹270.38 lakhs	₹1,416.61 lakhs	-80.91%

Expense Analysis

Total expenses for the quarter amounted to ₹270.38 lakhs compared to ₹1,416.61 lakhs in Q3FY25. Key expense components included employee benefits expenses of ₹65.23 lakhs, other expenses of ₹51.08 lakhs, and cost of materials consumed at ₹52.81 lakhs. The company also recorded construction materials consumed of ₹43.73 lakhs and depreciation expenses of ₹31.67 lakhs during the quarter.

Nine-Month Performance

For the nine months ended December 31, 2025, the company demonstrated better overall performance with a net profit of ₹417.31 lakhs, though this was lower than ₹642.86 lakhs achieved in the corresponding period of the previous year. Total income for the nine-month period stood at ₹960.53 lakhs compared to ₹5,180.15 lakhs in the previous year.

Nine-Month Metrics	FY26	FY25	Change
Total Income	₹960.53 lakhs	₹5,180.15 lakhs	-81.46%
Net Profit	₹417.31 lakhs	₹642.86 lakhs	-35.08%
Total Expenses	₹543.22 lakhs	₹4,537.29 lakhs	-88.03%

Segment Performance

The company operates primarily in textile operations, which generated segment revenue of ₹213.62 lakhs in Q3FY26 compared to ₹1,528.59 lakhs in Q3FY25. Segment results from textile operations showed a profit of ₹40.16 lakhs during the quarter. The company's segment assets totaled ₹1,802.36 lakhs, with textile operations accounting for ₹263.54 lakhs and real estate operations contributing ₹1,538.83 lakhs.

Earnings Per Share

The company reported a basic and diluted earnings per share of (₹0.15) for Q3FY26 compared to ₹0.44 in Q3FY25. For the nine-month period, EPS stood at ₹1.21 compared to ₹1.86 in the previous year. The paid-up equity share capital remained unchanged at ₹3,447.00 lakhs with a face value of ₹10 per share.

Board Meeting and Compliance

The Board of Directors meeting was held on January 21, 2026, at the company's registered office in Mumbai, where the unaudited financial results were approved. The results have undergone limited review by the statutory auditors SGCO & Co. LLP and comply with Indian Accounting Standards and SEBI listing regulations.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.76%	-13.83%	-23.90%	-34.80%	-47.90%	+1,769.41%

Shekhawati Industries Limited has announced its board's approval for a strategic investment in the real estate sector through a partnership in the proposed Shekhawati Shubhraj Developers LLP. The decision was made during a board meeting held on December 15, 2025, at the company's registered office in Mumbai.

Investment Details and Structure

The board has approved subscribing as a partner in the proposed LLP with an investment stake of up to 50%. This investment represents a significant diversification move for the company into the real estate and construction development sector.

Investment Parameter	Details
Investment Range	Up to 50% partnership stake
Target Entity	Shekhawati Shubhraj Developers LLP (proposed)
Industry Focus	Real Estate and Construction Development
Consideration Type	Cash consideration
Investment Timeline	Post incorporation of proposed LLP

Strategic Rationale and Business Impact

The investment aims to create synergy through operational expertise and specialized knowledge of both partners to enhance project execution, innovation, and quality. This strategic move is expected to have a positive impact on the company's business operations by expanding its presence in the real estate development sector.

The proposed Shekhawati Shubhraj Developers LLP will function as a professional development company with specific focus areas:

Planning and design of high-quality projects
Execution of real estate development initiatives
Delivery of reliable and sustainable solutions
Value-driven approach to client services
Customer-centric business model with skilled team expertise

Related Party Transaction Classification

The investment has been classified as a related party transaction due to common directors between the entities. However, the company has confirmed that the transaction will be conducted at arm's length, ensuring fair valuation and transparent business practices.

Regulatory Compliance and Approvals

The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company has indicated that no additional governmental or regulatory approvals are required for this investment, streamlining the implementation process.

This strategic partnership represents Shekhawati Industries' expansion beyond its traditional business lines into the growing real estate development sector, positioning the company to leverage new market opportunities through collaborative expertise and shared resources.