TAAL Tech Limited reported steady financial performance for the quarter and nine months ended December 31, 2025, with consolidated net profit growing 8.3% year-on-year. The engineering and design services company also announced key corporate governance changes, including the appointment of new statutory auditors.

Financial Performance Highlights

The company's consolidated financial results showed resilient performance across key metrics for Q3FY26:

For the nine-month period ended December 31, 2025, the company demonstrated stronger growth momentum:

Standalone Performance Analysis

On a standalone basis, TAAL Tech Limited reported net profit of ₹1,078.56 crore for Q3FY26 compared to ₹1,143.01 crore in the corresponding quarter of the previous year. Standalone revenue from operations reached ₹4,411.70 crore, up from ₹4,203.64 crore in Q3FY25. The nine-month standalone profit stood at ₹3,661.12 crore versus ₹3,526.39 crore in the previous year, reflecting a growth of 3.8%.

Exceptional Items and Special Provisions

The company reported net exceptional items of ₹38.03 crore during the quarter, comprising two significant components. TAAL Tech recognized a one-time provision increase of ₹332.76 crore for employee benefits due to the implementation of New Labour Codes effective November 21, 2025. Simultaneously, the company reversed a provision for customer claims amounting to ₹371.05 crore, as the obligation was no longer considered probable based on management assessment.

Corporate Governance Updates

The Board of Directors approved the appointment of M/s. TLB & Co. (Firm Registration No. 016505S), Chartered Accountants, as statutory auditors to fill a casual vacancy. This appointment became necessary due to the merger of the existing statutory auditors M/s. V. P. Thacker & Co. with M/s. Lodha & Bhatt, Chartered Accountants. The new auditors will hold office until the conclusion of the 12th Annual General Meeting.

Dividend Distribution

TAAL Tech Limited had declared an interim dividend of ₹35 per equity share (face value ₹10 each) in the board meeting held on January 6, 2026. The dividend payment was completed by January 31, 2026, demonstrating the company's commitment to shareholder returns despite operational challenges.

Business Segment and Operations

The company operates in a single business segment of Engineering and Design Services, with consolidated operations including subsidiaries TAAL Technologies Inc. (USA), TAAL Tech GmbH (Switzerland), and TAAL Tech UK Limited. The paid-up equity share capital remained stable at ₹311.63 crore with a face value of ₹10 per share.

TAAL Tech Limited (formerly known as TAAL Enterprises Limited) has notified BSE Limited about a significant change in its statutory auditing arrangements. The company received communication from its current statutory auditors regarding a merger that will impact the auditing structure.

Auditor Merger Details

The company's existing statutory auditors, M/s V.P. Thacker & Co., Chartered Accountants, have informed TAAL Tech Limited about their merger with Risabh Lodha & Bhatt, Chartered Accountants. This corporate restructuring will result in the formation of a new auditing entity.

Regulatory Compliance and Next Steps

TAAL Tech Limited has issued this intimation in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The regulation mandates listed companies to disclose material events and information that could impact investor decisions.

The company has outlined its procedural approach to address this change:

• The matter will be placed before the upcoming Audit Committee meeting
• Board of Directors will consider the merger implications
• Necessary actions will be taken as required by regulatory framework
• BSE has been requested to update their records accordingly

Corporate Communication

The notification was signed by Aditya Shashikant Oza, Company Secretary of TAAL Tech Limited, and dated February 04, 2026. The communication was addressed to the Listing Department of BSE Limited, where TAAL Tech Limited trades under scrip code 539956.

This merger represents a consolidation in the chartered accountancy sector and will require TAAL Tech Limited to ensure continuity of audit services while maintaining compliance with all applicable regulations and standards.