News Earnings Smiths & Founders (India) Limited Reports Q3FY26 Results with 35% Decline in Net ProfitSmiths & Founders (India) Limited Reports Q3FY26 Results with 35% Decline in Net Profit
Smiths & Founders (India) Limited reported Q3FY26 results with net profit declining 35% to ₹24.31 lakhs despite 5.3% revenue growth to ₹339.62 lakhs. Nine-month performance showed similar trends with profit down 29.1% to ₹73.91 lakhs while revenue increased 4.8% to ₹1,044.41 lakhs. Higher material costs and employee expenses impacted profitability margins during the period.
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Smiths & Founders (India) Limited announced its unaudited financial results for the third quarter of fiscal year 2026, ended December 31, 2025. The company reported mixed performance with revenue growth but a significant decline in profitability compared to the same period last year.
Financial Performance Overview
The company's financial performance for Q3FY26 showed contrasting trends in revenue and profitability:
| Metric | Q3FY26 | Q3FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹339.62 lakhs | ₹322.48 lakhs | +5.3% |
| Total Income | ₹339.89 lakhs | ₹324.10 lakhs | +4.9% |
| Net Profit | ₹24.31 lakhs | ₹37.39 lakhs | -35.0% |
| Earnings Per Share (Basic) | ₹0.02 | ₹0.04 | -50.0% |
Nine-Month Performance Analysis
For the nine-month period ended December 31, 2025, the company's performance reflected similar trends:
| Parameter | 9M FY26 | 9M FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹1,044.41 lakhs | ₹996.18 lakhs | +4.8% |
| Total Income | ₹1,046.39 lakhs | ₹1,003.14 lakhs | +4.3% |
| Net Profit | ₹73.91 lakhs | ₹104.27 lakhs | -29.1% |
| Earnings Per Share (Basic) | ₹0.07 | ₹0.10 | -30.0% |
Cost Structure and Expenses
The company's expense analysis reveals key factors impacting profitability. Total expenses for Q3FY26 increased to ₹307.45 lakhs from ₹286.71 lakhs in Q3FY25, representing a 7.2% increase. Major expense components included:
- Cost of materials consumed: ₹159.08 lakhs (Q3FY26) vs ₹142.18 lakhs (Q3FY25)
- Employee benefits expense: ₹83.12 lakhs vs ₹72.08 lakhs
- Other expenses: ₹63.82 lakhs vs ₹58.52 lakhs
- Depreciation and amortisation: ₹6.72 lakhs vs ₹6.36 lakhs
Notably, finance costs decreased significantly to ₹0.09 lakhs from ₹2.83 lakhs in the previous year quarter.
Tax Position and Capital Structure
The company reported current tax expenses of ₹8.62 lakhs for Q3FY26, while no current tax was paid in Q3FY25. A deferred tax benefit of ₹0.49 lakhs was recorded during the quarter. The paid-up equity share capital remained stable at ₹1,019.97 lakhs with a face value of ₹1 per share.
Board Approval and Compliance
The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on January 30, 2026. The meeting commenced at 11:00 AM and concluded at 11:30 AM. The results have been prepared in accordance with Indian Accounting Standard 34 and comply with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
The company's auditors, SNR & Company, Chartered Accountants, conducted a limited review of the financial results and issued an unqualified review report dated January 30, 2026.
Historical Stock Returns for Smiths & Founders
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.30% | +40.55% | +39.09% | +33.53% | +6.53% | +706.02% |
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