Vakrangee Limited delivered impressive financial performance in Q3FY26, with the Board of Directors approving the unaudited financial results for the quarter and nine months ended December 31, 2025, during their meeting held on January 24, 2026.

Strong Standalone Financial Performance

The company demonstrated robust growth in its standalone operations during Q3FY26. Revenue from operations increased to ₹4,754.01 crores compared to ₹4,621.04 crores in Q3FY25, representing a growth of 2.87%. Total income, including other income of ₹101.75 crores, reached ₹4,855.76 crores for the quarter.

The company's profitability showed remarkable improvement with net profit for Q3FY26 reaching ₹371.93 crores, a substantial increase of 95.67% from ₹190.11 crores in the corresponding quarter of the previous year. Profit before tax stood at ₹491.33 crores compared to ₹255.59 crores in Q3FY25.

Nine-Month Performance Highlights

For the nine months ended December 31, 2025, Vakrangee maintained strong momentum with revenue from operations at ₹13,911.31 crores compared to ₹13,838.99 crores in the corresponding period last year. Net profit for the nine-month period reached ₹892.06 crores, significantly higher than ₹535.02 crores in the previous year, marking a growth of 66.73%.

Consolidated Results Show Solid Growth

On a consolidated basis, the company reported revenue from operations of ₹6,010.49 crores for Q3FY26 compared to ₹6,787.58 crores in Q3FY25. Consolidated net profit stood at ₹315.01 crores for the quarter, substantially higher than ₹104.63 crores in the corresponding quarter last year.

Key Corporate Developments

The Board approved several important corporate actions during the meeting. Most notably, Mr. Aditya Jani was appointed as Chief Financial Officer and designated as Key Managerial Personnel effective January 24, 2026. Mr. Jani brings over 14 years of experience in finance, banking, investor relations, and corporate strategy, having been with Vakrangee since 2011.

Share Consolidation Initiative

Vakrangee has filed a petition before the National Company Law Tribunal, Mumbai Bench-IV on October 28, 2025, seeking consolidation of every 1,08,31,91,807 fully paid-up equity shares of face value ₹1 each into 10,83,19,180 fully paid-up equity shares of face value ₹10 each. The petition was admitted by the Tribunal on December 11, 2025, with the next hearing scheduled for January 29, 2026.

Business Segments and Operations

The company's activities predominantly comprise providing various services through Vakrangee Kendra, which represents the primary reportable operating segment for standalone operations. On a consolidated basis, the group operates two main segments: Vakrangee Kendra and Sale of Automated Teller Machines (ATM) Products/Services, reflecting the diversified nature of the business portfolio.

Vakrangee Limited has informed the stock exchanges about receiving an Income Tax penalty order of ₹28,90,765 for the assessment year 2018-19. The company disclosed this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Income Tax Penalty Details

The company received two separate notices from the Income Tax Department on December 30, 2025. These include a demand notice under section 156 of the Income-Tax Act, 1961, and a penalty order under section 270A of the Income Tax Act, 1961.

Nature of Violation

The penalty has been imposed in connection with an earlier Income Tax assessment for the assessment year 2018-19. The order under section 270A relates to penalty provisions under the Income Tax Act, while the section 156 notice determines the total demand amount.

Company's Response and Impact Assessment

Vakrangee Limited has stated that it believes the penalty demand is not maintainable and is currently in the process of filing an appeal against the order. The company has assessed that this development will have no material impact on its financial, operational, or other activities.

Regulatory Compliance

The disclosure was made by Company Secretary and Compliance Officer Amit Gadgil in compliance with Regulation 30 read with sub-para 20, Part A, Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also adhered to the requirements of SEBI Circular No. SEBI/HO/CFD/POD2/CIR/P/0155 dated November 11, 2024.

This penalty notice represents a routine regulatory disclosure as Vakrangee Limited continues to address tax-related matters through appropriate legal channels while maintaining its operational focus.