String Metaverse Limited announced its unaudited financial results for the quarter ended December 31, 2025, demonstrating strong operational performance across its business segments. The company's board of directors convened on January 22, 2026, to approve the quarterly results and several significant corporate actions.

Financial Performance Overview

The company delivered robust consolidated financial results for Q3FY26, showcasing substantial growth in revenue and profitability.

The consolidated revenue from operations increased significantly to ₹278.35 crores in Q3FY26 compared to ₹115.69 crores in the corresponding quarter of the previous year. Net profit for the quarter stood at ₹27.89 crores, representing substantial growth from ₹10.21 crores in Q3FY25.

Segment-wise Performance

String Metaverse operates across two primary business segments, both contributing to the strong quarterly performance.

The gaming segment remained the primary revenue driver, generating ₹272.81 crores in Q3FY26. The High-Frequency Trading (HFT) segment contributed ₹5.54 crores during the quarter, adding diversification to the company's revenue streams.

Corporate Actions and Strategic Initiatives

The board approved several key corporate actions during the January 22, 2026 meeting, subject to shareholder approval.

Authorized Capital Enhancement

The proposed increase will create an additional ₹70.00 crores in authorized capital through 7.00 crore new equity shares of ₹10 each. This expansion will require corresponding amendments to Clause V of the company's Memorandum of Association.

Employee Stock Option Scheme Implementation

The board evaluated various options for implementing Employee Stock Option Schemes (ESOPs) to benefit company employees. The implementation remains subject to receiving necessary regulatory approvals and compliance with applicable SEBI regulations.

Promoter Offer for Sale

The company announced plans for an Offer for Sale (OFS) by the promoter group to meet Minimum Public Shareholding (MPS) norms. This initiative will be conducted in accordance with applicable SEBI regulations and stock exchange guidelines.

Subsidiary Structure and Operations

String Metaverse maintains an extensive subsidiary network across multiple jurisdictions, supporting its global operations.

The consolidated results include contributions from these subsidiaries, with foreign subsidiaries contributing ₹277.90 crores in revenue and ₹27.75 crores in net profit for the quarter ended December 31, 2025.

Standalone Performance

The standalone financial results showed more modest performance compared to consolidated figures, reflecting the significant contribution of subsidiary operations.

The standalone entity reported revenue from operations of ₹3.35 crores and net profit of ₹0.13 crores for Q3FY26, indicating the parent company's focus on its subsidiary-driven business model.

Regulatory Compliance and Next Steps

The board approved a postal ballot notice to seek shareholder approval for the proposed authorized capital increase. The company maintains compliance with SEBI regulations and stock exchange requirements, with all financial results reviewed by the audit committee and approved by the board of directors. The meeting commenced at 11:45 AM IST and concluded at 01:15 PM IST on January 22, 2026.

Meta and WhatsApp have escalated their legal battle against Indian competition regulators by approaching the Supreme Court to challenge the Competition Commission of India's 2024 order. The companies are contesting both the CCI's ruling and the subsequent National Company Law Appellate Tribunal (NCLAT) decision that largely upheld the original penalty and findings.

CCI's Original Ruling and Penalty

The Competition Commission of India imposed significant penalties and restrictions on the companies following its investigation into WhatsApp's 2021 privacy policy. The regulatory action stemmed from the platform's controversial "take it or leave it" approach to user data sharing.

Privacy Policy Controversy

The dispute centers around fundamental changes WhatsApp made to its privacy policy in 2021. Unlike previous versions, the updated policy significantly altered user choice regarding data sharing with Meta and its group companies.

The key differences between policy versions highlight the regulatory concerns:

• 2021 Policy: Users required to accept data-sharing with Meta or discontinue WhatsApp service
• 2016 and 2019 Policies: Users could opt out of data sharing while continuing to use WhatsApp

The CCI ruled that this policy change constituted unfair conditions, abuse of market dominance, and denial of market access to users who preferred not to share their data.

NCLAT's Appellate Decision

The National Company Law Appellate Tribunal reviewed the CCI's order and delivered a mixed verdict that provided partial relief to both parties. The appellate tribunal's decision addressed several key aspects of the original ruling.

The NCLAT clarified that while user data sharing could continue, it must be based on explicit user consent, and users must retain the option to opt out of such arrangements.

Current Legal Status

The Supreme Court has yet to schedule a hearing for Meta and WhatsApp's latest appeal. The companies are seeking to overturn both the substantial financial penalty and the regulatory findings that determined they had abused their dominant market position.

The case represents a significant test of India's competition law enforcement in the digital economy sector, particularly regarding how global technology platforms handle user data and privacy policies in the Indian market.