Step Two Corp announced its unaudited financial results for the quarter ended December 31, 2025, demonstrating a significant operational turnaround. The Board of Directors approved these results during their meeting held on February 6, 2026, which commenced at 4:00 PM and concluded at 4:50 PM.

Financial Performance Overview

The company achieved a remarkable turnaround in Q3FY26, reporting a net profit of ₹30.54 lacs compared to a substantial loss of ₹151.88 lacs in the corresponding quarter of the previous year. This represents a significant improvement in the company's financial position.

Revenue Components and Growth Drivers

The company's revenue from operations increased dramatically to ₹53.89 lacs in Q3FY26 from ₹6.72 lacs in Q3FY25. The primary contributors to this growth included:

• Net gain on fair value changes: ₹39.93 lacs (compared to nil in Q3FY25)
• Interest Income: ₹11.46 lacs (up from ₹5.91 lacs)
• Dividend Income: ₹2.50 lacs (increased from ₹0.81 lacs)
• Gain on sale of Investment: ₹1.60 lacs (compared to nil in previous year)

Expense Management

Total expenses for Q3FY26 were significantly lower at ₹14.67 lacs compared to ₹215.55 lacs in Q3FY25. The major expense categories included:

Nine-Month Performance

For the nine-month period ended December 31, 2025, the company reported a net loss of ₹55.48 lacs on total income of ₹139.94 lacs, compared to a loss of ₹218.04 lacs on income of ₹305.84 lacs in the corresponding period of the previous year. The company also recorded exceptional items of ₹25.02 lacs during the nine-month period.

Regulatory Compliance

The financial results were prepared in accordance with IND AS notified under the Companies (Indian Accounting Standards) Rules, 2015. The results were reviewed by the Audit Committee and subsequently approved by the Board of Directors. M.K. Kothari & Associates, Chartered Accountants, conducted a limited review of the unaudited financial results as per Regulation 33 of the SEBI Listing Regulations.

Step Two Corp has reported a significant downturn in its financial performance for the quarter ended September 30, 2025. The company's financial results, approved by the Board of Directors on November 13, 2025, reveal a substantial loss and a sharp decline in revenue.

Key Financial Highlights

All figures in Rs. lacs

Quarterly Performance Analysis

Step Two Corp experienced a significant deterioration in its financial performance during the second quarter of fiscal year 2026:

• Revenue Decline: The company's total revenue plummeted to Rs 2.32 lacs, marking a sharp decrease from Rs 89.71 lacs in the previous quarter and Rs 70.78 lacs in the same quarter last year.

• Shift to Loss: The company reported a net loss of Rs 110.58 lacs, a stark contrast to the profit of Rs 24.56 lacs in the previous quarter.

• Fair Value Impact: A substantial contributor to the loss was the net loss on fair value changes, amounting to Rs 139.52 lacs.

Half-Year Performance

For the half-year ended September 30, 2025, Step Two Corp's financial struggles continued:

• The cumulative loss for the six-month period widened to Rs 240.80 lacs.
• This loss reflects significant operational challenges faced by the company.

Balance Sheet Overview

As of September 30, 2025, the company's financial position showed some notable changes:

• Cash and Cash Equivalents: Decreased to Rs 23.05 lacs from Rs 119.83 lacs at the end of the previous fiscal year.
• Investments: Increased significantly to Rs 848.69 lacs from Rs 403.25 lacs.
• Total Assets and Liabilities: Rose to Rs 955.41 lacs from Rs 569.65 lacs.

Conclusion

Step Two Corp's Q2 FY2026 results reflect a period of financial strain, characterized by a sharp revenue decline and a swing to significant losses. The company's performance may raise concerns among investors and stakeholders about its near-term prospects and strategies for recovery. As the financial landscape continues to evolve, close monitoring of the company's future quarters will be crucial to assess its ability to navigate these challenges and return to profitability.