Suraj products Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, presenting a mixed performance across different time periods. The Odisha-based company, which operates in iron ore finished products manufacturing, reported quarterly results that showed modest growth while nine-month figures reflected challenges in the broader operating environment.

Quarterly Financial Performance

The company's Q3FY26 performance demonstrated resilience with net profit growing marginally by 1.3% year-on-year. Despite facing revenue headwinds, the company managed to maintain profitability through effective cost management strategies.

Nine-Month Performance Analysis

The nine-month results for FY26 revealed more significant challenges, with both revenue and profitability declining compared to the corresponding period in the previous fiscal year. The company faced headwinds that impacted its overall performance during the extended period.

Cost Structure and Operational Metrics

The company's cost management during Q3FY26 showed mixed results across various expense categories. Cost of materials consumed decreased to ₹3,657.28 lakhs from ₹4,414.65 lakhs in Q3FY25, while employee benefit expenses increased to ₹505.69 lakhs from ₹441.19 lakhs. Finance costs declined significantly to ₹17.97 lakhs from ₹53.05 lakhs, reflecting improved financial management.

Legal and Regulatory Developments

The company disclosed several important legal and regulatory matters in its results. An arbitration award was pronounced in favor of the company during the quarter in connection with a power plant dispute, though the award amount has not yet been received or recognized in the financial results. Additionally, the company received an income tax assessment order dated December 1, 2025, demanding ₹32.31 lakhs for FY 2023-24, against which an appeal has been filed.

Corporate Governance and Compliance

The Board of Directors approved the unaudited financial results at their meeting held on February 3, 2026, following recommendation by the audit committee. The results were subjected to limited review by statutory auditors GARV & Associates, who issued an unmodified review report. The company maintains its paid-up equity share capital at ₹1,140.00 lakhs with a face value of ₹10 per share.

Suraj Products Limited (SPL) has emerged victorious in a significant arbitration case, securing a favorable award worth ₹27.46 crore against Everlience India Private Limited, formerly known as MAN Energy Solutions India Pvt Ltd. The arbitration, which concluded on November 26, 2025, centered around a dispute involving a 6MW Steam Turbine Generator that failed to meet contractual output specifications.

Key Details of the Arbitration Award

Financial Implications

The arbitration award represents a significant financial boost for Suraj Products Limited. The total amount of ₹27,46,44,375 includes interest calculated at 12% per annum up to the date of the award. This compensation is likely to have a positive impact on the company's financial position.

Payment Terms and Additional Interest

The arbitration award includes specific terms regarding payment. If Everlience India Private Limited fails to make the payment within 30 days of the award date, they will be subject to an increased interest rate of 18% per annum on the outstanding amount until full payment is made.

Company's Disclosure

Suraj Products Limited promptly disclosed this development to the stock exchanges, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency ensures that investors and stakeholders are informed about this material event that could potentially impact the company's financial outlook.

Conclusion

This arbitration award marks a positive development for Suraj Products Limited, potentially strengthening its financial position. Investors and market watchers will likely keep a close eye on the payment of the award and its impact on the company's future financial statements.