Southern magnesium & chemicals Limited has announced its unaudited financial results for the quarter ended December 31, 2025, following the board meeting held on February 5, 2026. The company reported a net loss of ₹4.08 lakhs for Q3FY26, marking a significant decline from the profit of ₹34.93 lakhs recorded in the corresponding quarter of the previous year.

Financial Performance Overview

The company's financial performance showed considerable deterioration across key metrics during the third quarter. Revenue from operations declined substantially to ₹58.18 lakhs compared to ₹173.85 lakhs in Q3FY25, representing a decrease of 66.52%. Total income, including other income of ₹14.90 lakhs, stood at ₹73.08 lakhs against ₹189.55 lakhs in the previous year.

Expense Analysis

Total expenses for the quarter amounted to ₹78.53 lakhs compared to ₹141.96 lakhs in Q3FY25. Despite the reduction in absolute terms, expenses exceeded total income, resulting in the quarterly loss. Cost of raw materials consumed decreased to ₹20.97 lakhs from ₹96.07 lakhs, while employee benefits expense remained relatively stable at ₹18.48 lakhs compared to ₹22.43 lakhs in the previous year.

Nine-Month Performance

For the nine months ended December 31, 2025, the company reported a net profit of ₹6.76 lakhs, significantly lower than ₹326.68 lakhs achieved in the corresponding period of the previous year. Revenue from operations for the nine-month period stood at ₹245.69 lakhs compared to ₹1,162.37 lakhs in the previous year, indicating sustained operational challenges.

Board Meeting and Regulatory Compliance

The board of directors approved these results at their meeting held on February 5, 2026, at the company's registered office in Hyderabad. The meeting was conducted in accordance with Regulation 30 and 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Managing Director and CFO N. Rajender Prasad signed the official communication to BSE Limited, where the company is listed with scrip code 513498.

Additional Regulatory Updates

The company also announced that SEBI has initiated a special window for re-lodgement of physical share transfer deeds from February 5, 2026, to February 4, 2027. This initiative covers transfer deeds that were lodged prior to April 2019 and were returned or rejected due to document deficiencies. During this period, re-lodged securities will be issued only in demat mode subject to compliance requirements.

Southern magnesium & chemicals Limited has issued a clarification to BSE regarding recent movements in its share price, stating that the fluctuations are attributed to market factors rather than company-specific developments. The response was issued on January 22, 2026, following a surveillance inquiry from the stock exchange.

BSE Surveillance Inquiry Response

The company responded to BSE's email reference number L/SURV/ONL/PV/AJ/2025-2026/3300 dated January 21, 2026, which sought clarification on the price movement of the company's shares. Southern Magnesium & Chemicals emphasized its commitment to regulatory compliance and timely disclosure practices.

Regulatory Compliance Statement

The company provided comprehensive details regarding its disclosure practices:

Southern Magnesium & Chemicals confirmed that it has made all necessary prompt disclosures pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The company stated that it has not withheld any events, information, or announcements, including any price-sensitive information that may impact operations, performance, or share price behavior.

Management Response

The clarification was signed by N. Rajender Prasad, Managing Director and CFO (DIN: 00145659), who digitally signed the document on January 22, 2026. The company emphasized its consistent adherence to regulatory requirements and commitment to continue such compliance in the future.

The management concluded that the share price movement is purely due to market factors and not specifically related to any company developments. This response demonstrates the company's proactive approach to addressing exchange inquiries and maintaining transparency with stakeholders.