Autoline Industries Limited has completed a significant milestone in its divestment strategy by transferring its remaining shareholding in subsidiary Autoline Industrial Parks Limited (AIPL). The company announced the completion of this transaction through a regulatory filing dated February 18, 2026, marking another step in its strategic restructuring process.

Transaction Details and Financial Impact

The company successfully transferred 38,39,399 shares representing a 4.85% stake in AIPL on February 17, 2026. The transaction generated substantial proceeds for the company and its subsidiary.

Background of the Divestment Process

This transaction forms part of a comprehensive divestment strategy that began in 2023. The original Share Purchase Agreement (SPA) was executed on August 08, 2023, with a supplemental agreement signed on September 18, 2025. The agreements covered the sale of 44.78% equity shares in AIPL, which was formerly a material subsidiary of Autoline Industries.

The divestment process has been structured in phases, with the company having previously disclosed its intention to sell its entire stake in AIPL. Autoline Industrial Parks Limited transitioned from being a material subsidiary to an associate company effective April 15, 2025, reflecting the reduced shareholding.

Current Shareholding Structure

Following the February 17, 2026 transaction, Autoline Industries Limited now holds 0.00% stake in AIPL. However, the divestment process is not yet complete, as the company's wholly owned subsidiary, Autoline Design Software Limited (ADSL), still retains a 1.52% stake equivalent to 12,00,000 shares in AIPL.

Buyer Profile and Transaction Nature

MNSC Realty & Developers Pvt. Ltd., the acquiring company, is incorporated under the Companies Act, 2013, and operates in real estate activities along with other business verticals. The regulatory filing confirms that the buyer does not belong to the promoter group or group companies of Autoline Industries, ensuring the transaction maintains arm's length characteristics.

The total consideration for the complete divestment amounts to Rs. 95,16,62,991 for Autoline Industries and Rs. 3,33,37,009 for ADSL. The transaction has been structured as a non-related party transaction and does not fall under any scheme of arrangement.

Financial Position of AIPL

As of March 31, 2025, Autoline Industrial Parks Limited reported a net worth of Rs. 1,15,83,82,301, while recording nil turnover or income for the financial year. This financial position provides context for the strategic decision to divest from the subsidiary.

The completion of this divestment represents a significant corporate restructuring move for Autoline Industries, allowing the company to focus on its core operations while realizing value from its subsidiary holdings. The final transfer of the remaining 1.52% stake is scheduled for completion by March 05, 2026.

Autoline Industries Limited has delivered impressive financial results for Q3FY26, showcasing strong operational performance across key metrics. The automotive components manufacturer reported substantial revenue growth and improved profitability for both quarterly and nine-month periods ended December 31, 2025, as announced through its regulatory filing under Regulation 30 to BSE and NSE.

Strong Revenue Performance

The company's revenue trajectory remained robust during the reporting period. Quarterly revenue from operations reached ₹208.99 crores in Q3FY26, representing a significant 34.31% year-over-year increase from ₹155.60 crores in Q3FY25. Sequential growth was also strong, with revenue rising 20.96% quarter-on-quarter, driven by healthy demand, improved product mix, and higher volumes across key segments.

Profitability Analysis

The company's profitability metrics showed strong improvement across different periods. EBITDA for Q3FY26 stood at ₹19.47 crores compared to ₹16.60 crores in Q3FY25, marking a 17.36% improvement. The nine-month performance was particularly noteworthy, with profit after tax reaching ₹21.04 crores against ₹11.60 crores in the previous year, representing an 81.38% surge.

Strategic Capital Initiatives

The company completed significant capital optimization initiatives during the period. Autoline received ₹11 crores in Q3FY26 from land monetization, bringing total land sale proceeds to ₹98.50 crores with 100% realization. Additionally, the company issued 32,65,000 convertible warrants to promoters amounting to ₹24.50 crores, with 25% consideration received upfront to support capital investment for capacity enhancements.

Regulatory Compliance

Pursuant to Regulation 47 of Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published its Q3FY26 financial results in newspapers including Financial Express (Nationwide English Daily) and Lokatta (Marathi Daily) on February 08, 2026. The detailed quarterly results were filed with BSE (Scrip Code: 532797) and NSE (Symbol: AUTOIND) on February 07, 2026.

Management Outlook

Mr. Shivaji Akhade, CEO and Managing Director, commented on the strong performance, highlighting healthy demand conditions and disciplined execution. The company enters Q4 with confidence, supported by favorable industry environment and strong demand visibility from major OEMs including Tata Motors, Mahindra, and Ashok Leyland across commercial and passenger vehicle segments.

Industry Context and Future Prospects

The auto ancillary industry delivered strong performance in Q3FY26, supported by festive demand, improving rural sentiment, and benefits from GST reforms. The company anticipates continued growth visibility through robust order books and addition of new models across auto components and tooling segments. Strategic focus on automation, renewable energy initiatives, and deeper customer engagement remains central to improving efficiency and driving long-term value creation.