Walchandnagar Industries Limited has announced its unaudited financial results for the quarter ended December 31, 2025, showing a significant improvement in quarterly performance despite ongoing challenges in the nine-month period. The Board of Directors approved these results at their meeting held on January 29, 2026.

Financial Performance Overview

The company demonstrated a strong quarterly turnaround, moving from losses to profitability in Q3FY26. This improvement comes despite operational challenges faced during the year, including a lockout at the foundry plant that was resolved in November 2025.

Nine-Month Performance Challenges

While the quarterly results show improvement, the nine-month performance reflects the impact of operational disruptions experienced during the year.

Segment-Wise Performance

The company operates across three main segments: Heavy Engineering, Foundry and Machine Shop, and Others. Heavy Engineering continues to be the primary revenue contributor.

Q3FY26 Segment Revenue:

• Heavy Engineering: ₹7,404 lakhs (vs ₹4,278 lakhs in Q3FY25)
• Foundry and Machine Shop: ₹110 lakhs (vs ₹1,023 lakhs in Q3FY25)
• Others: ₹582 lakhs (vs ₹609 lakhs in Q3FY25)

Operational Developments

Several significant operational developments occurred during the quarter:

• Foundry Operations: The lockout at the company's foundry plant in Satara, Maharashtra was withdrawn on November 24, 2025, with manufacturing operations resuming from December 20, 2025
• ESOP Implementation: The company issued 15,609 equity shares under ESOP 2020 during the quarter, recognizing an expense of ₹23 lakhs
• Labour Code Impact: Exceptional items of ₹136 lakhs were recorded due to the implementation of new Labour Codes, including gratuity impact of ₹115 lakhs and compensated absences of ₹21 lakhs

Cost Structure Analysis

The company's cost management showed mixed results during Q3FY26:

The quarterly results reflect the company's resilience and ability to return to profitability despite facing operational challenges throughout the year. The resumption of foundry operations and improved performance in the Heavy Engineering segment contributed to the positive quarterly outcome.

Walchandnagar Industries has demonstrated strong business momentum with a substantial orderbook of ₹670.00 crores, positioning the company for sustained growth across its key operational segments. The nuclear sector continues to serve as the primary contributor to the company's current order portfolio, reflecting the firm's established expertise in this specialized engineering domain.

Current Orderbook Position

The company's orderbook composition highlights its strategic focus on high-value engineering projects:

Growth Prospects in Aerospace Sector

Walchandnagar Industries is anticipating significant expansion in the aerospace segment, with major orders expected to materialize during the fourth quarter. This development represents the company's diversification strategy beyond its traditional nuclear sector stronghold, potentially opening new revenue streams and reducing sector concentration risk.

Nuclear Sector Pipeline

The company's nuclear sector business continues to show strong momentum, with additional contracts expected within the next 3-6 months. This timeline suggests active negotiations and a healthy pipeline of opportunities in the nuclear engineering space, where the company has established technical capabilities and market presence.

Strategic Positioning

The combination of a substantial existing orderbook and near-term growth prospects across both nuclear and aerospace sectors indicates Walchandnagar Industries' strong market position in specialized engineering segments. The company's ability to secure orders across multiple high-technology sectors demonstrates its diversified capabilities and technical expertise in complex engineering projects.