Sulabh Engineers Board Approves Q3FY26 Results Showing 85% Drop in Net Profit
Sulabh Engineers & Services Limited's Board of Directors approved Q3FY26 unaudited financial results during their February 07, 2026 meeting, revealing significant challenges in standalone operations with net profit declining 85% to ₹8.86 lakhs and revenue dropping 69% to ₹21.89 lakhs. However, consolidated performance showed resilience with net profit growing 8% to ₹113.88 lakhs, supported by subsidiary contributions and regulatory compliance maintained through statutory auditor review.
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The Board of Directors of Sulabh Engineers & Services Limited convened on February 07, 2026, to approve the company's unaudited financial results for Q3FY26, revealing significant challenges in standalone operations. The meeting, held at the company's corporate office in Kanpur from 03:00 P.M. to 04:00 P.M., addressed the quarterly performance under Regulation 30 and 33 of SEBI listing requirements.
Board Meeting Outcomes and Regulatory Compliance
The board meeting resulted in the approval of unaudited standalone and consolidated financial results for the quarter ended December 31, 2025. The directors took on record the Limited Review Report issued by statutory auditors M/s Ranjit Jain & Co., who provided an unmodified review conclusion on both standalone and consolidated results. The meeting was conducted at Cabin No. 365 and 366 Padam Tower-II, 3rd Floor, Civil Lines, Kanpur, with all proceedings completed within the scheduled timeframe.
| Meeting Details: | Information |
|---|---|
| Date: | February 07, 2026 |
| Time: | 03:00 P.M. to 04:00 P.M. (IST) |
| Location: | Corporate Office, Kanpur |
| Auditor: | M/s Ranjit Jain & Co. |
| Review Status: | Unmodified conclusion |
Standalone Financial Performance Analysis
The company's standalone operations demonstrated significant deterioration during Q3FY26. Net profit declined substantially to ₹8.86 lakhs compared to ₹57.33 lakhs in the corresponding quarter of the previous year, representing an 85% year-on-year decrease. Revenue from operations contracted significantly, falling 69% to ₹21.89 lakhs from ₹70.14 lakhs in Q3FY25, while total expenses increased by 35% to ₹10.53 lakhs.
| Standalone Metrics: | Q3FY26 | Q3FY25 | Change (%) |
|---|---|---|---|
| Total Revenue from Operations: | ₹21.89 lakhs | ₹70.14 lakhs | -69% |
| Net Profit: | ₹8.86 lakhs | ₹57.33 lakhs | -85% |
| Total Expenses: | ₹10.53 lakhs | ₹7.81 lakhs | +35% |
| Earnings Per Share (Basic): | ₹0.01 | ₹0.06 | -83% |
Revenue Components and Operational Insights
The revenue breakdown reveals mixed performance across different income streams. Interest income, representing the company's core NBFC operations, increased to ₹43.38 lakhs from ₹36.79 lakhs year-on-year. However, this positive trend was significantly offset by substantial losses in sale of products/investments, which recorded a negative ₹25.56 lakhs compared to a positive ₹82.94 lakhs in Q3FY25. Net gain on fair value changes contributed ₹3.94 lakhs, while dividend income remained minimal at ₹0.13 lakhs.
Consolidated Performance Comparison
On a consolidated basis, the company demonstrated markedly stronger performance with net profit reaching ₹113.88 lakhs in Q3FY26 compared to ₹105.31 lakhs in Q3FY25, representing an 8% increase. Consolidated revenue from operations declined to ₹61.49 lakhs from ₹70.14 lakhs year-on-year, but the impact was substantially less severe than standalone operations. The consolidated results include financial information from subsidiary Venkatswamy Mining & Estates Private Limited.
| Consolidated Metrics: | Q3FY26 | Q3FY25 | Change (%) |
|---|---|---|---|
| Total Revenue from Operations: | ₹61.49 lakhs | ₹70.14 lakhs | -12% |
| Net Profit: | ₹113.88 lakhs | ₹105.31 lakhs | +8% |
| Earnings Per Share (Basic): | ₹0.11 | ₹0.10 | +10% |
Nine-Month Performance and Corporate Structure
For the nine-month period ended December 31, 2025, standalone operations showed declining trends with net profit falling to ₹132.67 lakhs from ₹186.20 lakhs in the corresponding period. The consolidated nine-month performance showed net profit of ₹230.88 lakhs compared to ₹222.50 lakhs in the previous year. As a Non Banking Financial Company, the entity operates without separate reportable segments under Ind AS 108, with the Audit Committee reviewing and the Board of Directors approving all financial results in compliance with regulatory requirements.
Historical Stock Returns for Sulabh Engineers & Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.84% | -3.24% | +5.29% | -29.08% | -35.23% | +62.59% |
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