Sundaram Brake Linings Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, through a regulatory filing under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Chennai-based friction materials manufacturer reported a significant decline in profitability, moving from profit to loss during the third quarter compared to the corresponding period last year.

Quarterly Financial Performance

The company's financial performance for Q3 FY26 showed considerable weakness across key metrics. Revenue from operations declined year-on-year, while the company moved from profitability to substantial losses during the quarter.

Other income for the quarter stood at ₹32.25 lacs compared to ₹99.81 lacs in Q3 FY25, representing a significant decline of 67.69%.

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, reflected similar challenges with the company recording substantial losses compared to the profitable performance in the corresponding period of the previous year.

Cost Structure and Operational Challenges

The company's expense structure showed mixed trends during Q3 FY26. Cost of materials consumed decreased to ₹4,056.97 lacs from ₹4,391.38 lacs in Q3 FY25. However, changes in inventories of finished goods and work-in-progress resulted in an expense of ₹341.48 lacs compared to a benefit of ₹33.68 lacs in the previous year.

Employee benefits expenses remained relatively stable at ₹1,273.82 lacs compared to ₹1,379.21 lacs in Q3 FY25. Finance costs declined to ₹74.74 lacs from ₹112.88 lacs, while other expenses decreased to ₹2,655.30 lacs from ₹2,823.56 lacs year-on-year.

Impact of New Labour Codes

The company recognized an exceptional item of ₹33.02 lacs in Q3 FY26 related to the impact of new labour codes that became effective from November 21, 2025. The Government of India consolidated 29 existing labour legislations into four unified Labour codes. Based on management's assessment, the company considered an incremental gratuity liability arising from these new codes.

Regulatory Compliance and Board Approval

The Board of Directors approved the unaudited financial results at their meeting held on February 6, 2026, which commenced at 10.40 AM and concluded at 11.20 AM. The results were reviewed by the Audit Committee and received an unqualified limited review report from statutory auditors Brahmayya & Co. The company filed the results with both NSE (Scrip Code: SUNDRMRAK) and BSE (Scrip Code: 590072) under the regulatory requirements.

The company secretary and compliance officer J. R. Vishnu Varthan signed the regulatory filing, confirming compliance with SEBI listing regulations.

Sundaram Brake Linings Limited , a leading manufacturer of friction materials, has reported a net loss for the quarter ended September 30, 2025, as per the company's latest financial results. The unaudited financial statement, approved by the board of directors on November 11, 2025, reveals a challenging quarter for the company.

Financial Performance

The company's financial performance for Q2 FY2026 shows a significant downturn compared to the previous quarter:

Sundaram Brake Linings reported a net loss of Rs. 312.43 lacs for Q2 FY2026, a significant increase from the loss of Rs. 53.23 lacs in the previous quarter. This decline in profitability was primarily driven by a 15.2% quarter-on-quarter decrease in revenue from operations, which fell to Rs. 7,802.50 lacs from Rs. 9,200.88 lacs in Q1 FY2026.

Half-Year Performance

For the half-year ended September 30, 2025, Sundaram Brake Linings posted a loss of Rs. 365.66 lacs, compared to a profit of Rs. 295.98 lacs in the corresponding period last year. The company's total revenue for the half-year stood at Rs. 17,207.25 lacs, while total expenses amounted to Rs. 17,568.56 lacs.

Operational Highlights

Despite the overall decline, the company managed to reduce its total expenses by 11.2% compared to the previous quarter. However, this reduction was not sufficient to offset the sharp decline in revenue.

The cost of materials consumed decreased to Rs. 4,162.57 lacs in Q2 from Rs. 4,399.14 lacs in Q1, indicating potential supply chain optimizations or reduced production volumes.

Balance Sheet and Cash Flow

As of September 30, 2025, Sundaram Brake Linings reported:

• Total assets of Rs. 20,009.47 lacs
• Equity share capital of Rs. 393.46 lacs
• Other equity of Rs. 9,117.12 lacs

The cash flow statement for the half-year ended September 30, 2025, shows:

• Net cash flow from operating activities: Rs. 2,376.28 lacs
• Net cash used in investing activities: Rs. (420.08) lacs
• Net cash used in financing activities: Rs. (1,950.54) lacs

Auditor's Review

Brahmayya & Co., the statutory auditors, have conducted a limited review of the financial results for the quarter ended September 30, 2025, and have issued an unmodified opinion, indicating that the financial statements fairly represent the company's financial position.

Investors and stakeholders will be closely watching Sundaram Brake Linings' performance in the coming quarters to see if the company can reverse this trend and return to profitability.