Tarsons Products Q3FY26 Revenue Grows 13% YoY Amid Capacity Expansion Costs
Tarsons Products delivered mixed Q3FY26 performance with consolidated revenue growing 12.8% to ₹107.9 crores and EBITDA increasing 6.3% to ₹31.5 crores, while facing margin compression and profitability challenges from accelerated depreciation and finance costs related to new facility investments at Panchla and Amta.
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Tarsons Products has delivered mixed consolidated financial performance for Q3FY26, showcasing strong revenue growth and improved EBITDA alongside margin pressures and profitability challenges from new facility investments. The company released its investor presentation for the quarter and nine months ended December 31, 2025.
Q3FY26 Financial Performance Overview
The company's Q3FY26 results present contrasting trends across key financial metrics. While revenue and EBITDA demonstrated robust year-on-year growth, both EBITDA margins and net profitability faced headwinds during the reporting period due to accelerated depreciation and finance costs from new facilities.
| Financial Metric: | Q3FY26 | Q3FY25 | Performance |
|---|---|---|---|
| Consolidated Revenue: | ₹107.9 crores | ₹95.7 crores | +12.8% |
| Consolidated EBITDA: | ₹31.5 crores | ₹29.6 crores | +6.3% |
| EBITDA Margin: | 29.2% | 31.0% | -180 bps |
| Adjusted PAT: | ₹6.4 crores | ₹5.3 crores | +21.4% |
Revenue Growth and Geographic Mix
Tarsons Products reported consolidated revenue of ₹107.9 crores for Q3FY26, representing a growth of 12.8% year-on-year from ₹95.7 crores in Q3FY25. The company's geographic revenue mix showed overseas markets contributing 51% of consolidated revenue in Q3FY26, compared to 45% in the corresponding quarter of the previous year.
For the nine-month period ended December 31, 2025, consolidated revenue reached ₹301.6 crores, marking an 8% increase from ₹279.7 crores in 9MFY25. The overseas revenue contribution for 9MFY26 stood at 48%, slightly higher than 47% in the previous year.
EBITDA Performance and Margin Analysis
Consolidated EBITDA grew by 6.3% to ₹31.5 crores in Q3FY26 from ₹29.6 crores in Q3FY25. However, EBITDA margin compressed to 29.2% from 31.0% year-on-year, indicating operational efficiency challenges during the quarter.
For the nine-month period, EBITDA showed stronger growth of 13.5% to ₹83.7 crores from ₹73.7 crores, with margin improvement to 27.7% from 26.3% in the previous year.
Profitability Impact from New Facilities
The company's profitability metrics were significantly impacted by investments in new facilities at Panchla and Amta. Adjusted PAT for Q3FY26 increased by 21.4% to ₹6.4 crores, while the nine-month adjusted PAT declined by 41.4% to ₹11.5 crores due to accelerated depreciation and higher finance costs.
Adjusted Cash PAT, which adds back depreciation, showed robust growth of 38.6% for Q3FY26 and 27.3% for 9MFY26, demonstrating strong underlying cash generation capabilities.
Management Commentary and Outlook
Commenting on the performance, Aryan Sehgal, Promoter and Whole time Director, highlighted the company's position in the final phase of capacity expansion with commissioning scheduled for Q4FY26. He emphasized that the addition of new capacities and expanded product portfolio positions the company well to accelerate growth by onboarding new customers and scaling export revenues.
Historical Stock Returns for Tarsons Products
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.05% | +7.90% | -8.65% | -42.97% | -43.87% | -74.27% |
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