Zenith Fibres Limited announced its unaudited financial results for the third quarter ended December 31, 2025, demonstrating strong profitability growth despite facing revenue headwinds. The company's Board of Directors approved these results at their meeting held on February 4, 2026, with the meeting commencing at 12:00 noon and concluding at 1:30 p.m.

Financial Performance Highlights

The company delivered impressive bottom-line growth with net profit surging 134% year-on-year to ₹261.33 lakh in Q3FY26, compared to ₹111.43 lakh in the corresponding quarter of the previous fiscal year. This remarkable improvement came despite a 31% decline in revenue from operations, which stood at ₹969.86 lakh versus ₹1,410.08 lakh in Q3FY25.

Nine-Month Performance

For the nine-month period ended December 31, 2025, Zenith Fibres maintained positive momentum with net profit growing 25% to ₹293.37 lakh compared to ₹234.06 lakh in the corresponding period last year. Revenue from operations for the nine-month period declined 24% to ₹2,876.67 lakh from ₹3,769.47 lakh in the previous year.

Segment-wise Performance

The company operates in two primary business segments: Manmade Fibre manufacturing and Renewable Energy. The Manmade Fibre segment generated revenue of ₹969.86 lakh in Q3FY26, down from ₹1,409.82 lakh in Q3FY25. The Renewable Energy segment contributed ₹20.61 lakh in revenue during the quarter, significantly higher than ₹0.26 lakh in the corresponding quarter last year.

Other Income and Operational Efficiency

A notable contributor to the company's improved profitability was other income, which increased substantially to ₹371.05 lakh in Q3FY26 from ₹88.62 lakh in Q3FY25. The company recognized liquidated damages income of ₹252.17 lakh during the quarter arising from cancellation of sale contracts by customers, which was disclosed as non-recurring in nature under other income.

Total expenses decreased to ₹997.28 lakh in Q3FY26 from ₹1,350.78 lakh in Q3FY25, reflecting improved cost management. The company maintained a paid-up equity share capital of ₹394.41 lakh with a face value of ₹10 per share throughout the reporting periods.

Regulatory Compliance and Governance

The financial results were reviewed by the Audit Committee and approved by the Board of Directors. The results have been filed with BSE Limited under scrip code 514266, in compliance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's statutory auditors, Surendra Modiani & Associates, provided a limited review report on the unaudited financial results.

Zenith Fibres Limited , a company listed on the BSE, has recently received an Order-In-Original from the Office of the Commissioner of CGST and Central Excise Audit Commissionerate, Vadodara. This order, dated November 11, 2025, follows a Show Cause Notice issued earlier to the company.

Key Details of the Order

The Order-In-Original includes the following demands:

Background and Implications

Previous Notice

The company had initially received a Show Cause Notice proposing a GST demand of Rs 19,43,542, along with applicable interest and penalty for the period FY 2017-18 to FY 2022-23.

Current Order

The recent order demands recovery of Rs 14,78,179 for wrongly availed Input Tax Credit (ITC) under GST provisions. This amount is lower than the initially proposed figure in the Show Cause Notice.

Legal Recourse

Zenith Fibres has stated its intention to file an appeal challenging the GST imposition and penalty levy. The company has sought legal advice and plans to follow the procedure laid down under the CGST Act, 2017.

Financial Impact

The company considers it unlikely that this potential demand will materialize as a claim. However, they acknowledge the difficulty in assessing the financial impact until the matter's outcome from the Adjudicating Authority is known.

Disclosure Compliance

This disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating the company's commitment to transparency.

Company's Stance

Zenith Fibres maintains that it is premature to quantify the financial impact of this order. The company has assured stakeholders that it will update the Stock Exchange on any material developments in this matter.

As the situation unfolds, investors and stakeholders of Zenith Fibres Limited should keep a close watch on further updates from the company regarding the progress of their appeal and any potential financial implications.