SVC Industries Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing continued operational challenges with significant losses across both reporting periods. The company operates primarily in trading and warehousing of agricultural products along with lease rental income generation.

Financial Performance Overview

The company's financial performance for the quarter showed mixed results with marginal improvement in losses compared to the previous year. Total income increased slightly while the company managed to reduce its quarterly losses.

Revenue Composition and Operational Results

The company's revenue structure remained heavily dependent on lease rental income during Q3 FY26. Lease rent income contributed Rs 18.52 lakh compared to Rs 18.26 lakh in the corresponding quarter of the previous year. Notably, there were no agricultural product sales during the current quarter, unlike the previous quarter which recorded Rs 181.34 lakh in agricultural product sales.

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, showed a significant deterioration in financial performance compared to the corresponding period in the previous year. Total comprehensive loss widened substantially, reflecting ongoing operational challenges.

Expense Structure and Cost Management

The company's expense structure during Q3 FY26 was dominated by depreciation costs of Rs 48.15 lakh, which remained consistent across quarters. Employee benefits expense stood at Rs 14.65 lakh, showing an increase from Rs 11.46 lakh in Q3 FY25. Administrative and other expenses decreased to Rs 11.95 lakh from Rs 21.47 lakh in the corresponding previous quarter.

Outstanding Financial Obligations

SVC Industries continues to navigate significant financial obligations with multiple stakeholders. The company remains in negotiations with outstanding debenture holders for settlement of dues, with management noting that a reliable estimate cannot be made of the amount likely to be paid in satisfaction of these obligations.

Regarding PICUP obligations, the company received a one-time settlement offer dated December 4, 2023, with an extended payment deadline. PICUP approved an extension allowing the company to make the final installment payment of Rs 2,299 lakh on or before June 3, 2025. The company has already paid Rs 678.92 lakh toward this settlement on April 20, 2024, while requesting further extensions and rebates on the interest portion.

Corporate Governance and Compliance

The audit committee reviewed and the board of directors approved these results at their respective meetings held on February 11, 2026. The statutory auditors B.M. Chaturvedi & Co. conducted a limited review of the financial results. The company maintains its paid-up equity share capital at Rs 16,186.37 lakh with a face value of Rs 10 per share.

SVC Industries Ltd, a company engaged in agricultural product sales and leasing activities, has reported its financial results for the first quarter, along with several important corporate announcements.

Financial Performance

The company's unaudited financial results for the quarter reveal a significant shift in its financial position compared to the same period last year:

SVC Industries reported a total income of Rs. 265.37 lakh for the current quarter, marking a substantial increase of 93.2% compared to Rs. 137.38 lakh in the same quarter of the previous year. This growth was primarily driven by a significant rise in agricultural product sales, which amounted to Rs. 241.75 lakh.

Despite the increase in revenue, the company posted a net loss of Rs. 70.21 lakh for the quarter, in contrast to a profit of Rs. 57.00 lakh in the previous year's corresponding quarter. The shift to a loss position can be attributed to higher expenses, particularly in the purchase of stock in trade, which rose to Rs. 348.89 lakh. Total expenses for the quarter increased to Rs. 335.58 lakh.

The company's earnings per share (EPS) declined to negative Rs. 0.04 from positive Rs. 0.04 in the previous year.

Corporate Announcements and Challenges

SVC Industries faces ongoing financial obligations and regulatory challenges:

1. Negotiations with Debenture Holders: The company is currently in negotiations for the settlement of dues with debenture holders.

2. PICUP Payment: There is an outstanding payment of Rs. 2,299 lakh to PICUP (Pradeshiya Industrial & Investment Corporation of U.P. Limited), for which the company has requested an extension until September 2025.

3. Tax Appeals: The company has received notices from the Income Tax Appellate Tribunal for assessment years 2019-22 related to appeals by tax authorities.

Management Changes

The company has announced key changes in its management:

1. Company Secretary: Ms. Jyoti Darade has resigned as Company Secretary and Compliance Officer, effective July 31. Mr. Jishan Ahmed (ACS 71640) has been appointed as the new Company Secretary and Compliance Officer, starting August 1.

As SVC Industries navigates through these financial challenges and management changes, stakeholders will be keenly watching how these developments impact the company's future performance and strategic direction.