Sir Shadi Lal Enterprises Limited announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, revealing continued operational challenges despite revenue improvements. The sugar and distillery company reported a net loss of ₹1699.37 lakhs for Q3 FY26, representing a 16.93% increase in losses compared to ₹1453.37 lakhs in the corresponding quarter of the previous year.

Financial Performance Overview

The company's revenue performance showed positive momentum with total income from operations reaching ₹7805.05 lakhs in Q3 FY26, marking a substantial 37.64% increase from ₹5671.35 lakhs in Q3 FY25. This growth trajectory extended to the nine-month period, where revenue surged 51.62% to ₹26635.84 lakhs compared to ₹17568.34 lakhs in the previous year.

Segment-wise Performance

The sugar segment dominated the company's operations, contributing ₹7797.63 lakhs to Q3 FY26 revenue compared to ₹5544.04 lakhs in Q3 FY25. However, the segment reported a loss of ₹1266.77 lakhs for the quarter. The distillery segment contributed minimal revenue of ₹7.42 lakhs and recorded a loss of ₹192.42 lakhs, with operations remaining largely suspended due to pending major repairs and replacements.

Operational Challenges and Exceptional Items

The company faced significant operational headwinds during the quarter, with total expenses rising to ₹10488.77 lakhs from ₹7874.78 lakhs in the previous year. Cost of materials consumed increased substantially to ₹13608.00 lakhs from ₹6457.49 lakhs, while finance costs rose to ₹875.84 lakhs from ₹354.53 lakhs.

An exceptional expense of ₹140.00 lakhs was recorded for Q3 FY26, attributed to the estimated impact of new Labour Codes notified by the Government of India on November 21, 2025. This amount represents the company's assessment of changes in employee benefit expenses resulting from the consolidation of 29 existing labour laws into four new codes.

Corporate Restructuring Progress

The company continues to advance its composite scheme of arrangement with Triveni Engineering & Industries Limited (TEIL). The scheme, approved by the Board on December 10, 2024, provides for the amalgamation of Sir Shadi Lal Enterprises into TEIL. Following approvals from shareholders and creditors meetings held on November 30, 2025, the company filed a petition with the National Company Law Tribunal on December 13, 2025. The next hearing is scheduled for February 5, 2026.

Going Concern and Future Outlook

Despite the losses, the company's financials are prepared on a going concern basis, supported by technical and financial assistance from holding company TEIL. The auditors noted the company's recognition of deferred tax assets of ₹5702.00 lakhs as of December 31, 2025, primarily related to unabsorbed losses and depreciation, based on management's expectation of future profitability and the proposed amalgamation scheme.

Sir Shadi Lal Enterprises Limited has announced a board meeting scheduled for January 29, 2025, to consider and approve the company's unaudited financial results for the third quarter of FY26. The announcement was made through a formal communication to the BSE Limited and the Department of Corporate Affairs on January 22, 2026.

Board Meeting Details

The meeting agenda includes consideration and approval of key financial documents for the reporting period:

Regulatory Compliance

The company has fulfilled its obligation under Regulation 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015. This regulation mandates prior intimation to stock exchanges regarding board meetings that will consider financial results.

Trading Window Restrictions

In compliance with insider trading regulations, Sir Shadi Lal Enterprises Limited has implemented trading restrictions for designated persons:

The trading window closure was previously communicated to stakeholders on December 24, 2025, as part of the company's Code of Conduct to Regulate, Monitor and Report Trading by Designated Persons.

Corporate Communication

The formal notification was signed by Rakesh Kumar Yadav, Company Secretary (Membership No. A62974), and digitally authenticated on January 22, 2026. The communication ensures transparency and compliance with SEBI's disclosure requirements for listed companies.

The board meeting outcome and financial results will be submitted to the stock exchange following the meeting conclusion, after which normal trading activities for designated persons will resume.