Duncan Engineering Limited has terminated its joint venture agreement with Jubail Pearl Company Ltd., Saudi Arabia, following the failure to incorporate the intended joint venture company within the stipulated timeframe. The Board of Directors approved the termination with immediate effect during their meeting held on January 22, 2026.

Joint Venture Timeline and Termination

The company had originally entered into the Joint Venture Agreement (JVA) with Jubail Pearl Company Ltd., Saudi Arabia, as announced in their earlier intimation dated October 10, 2025. However, the intended joint venture company could not be successfully incorporated within the agreed timeline, leading to the decision to terminate the agreement.

The key details of the termination are presented below:

Financial and Operational Impact

Duncan Engineering has clarified that the termination carries no material impact on the company's operations or financial position. Importantly, no investment or financial commitments were made pursuant to the JVA during the period between its announcement and termination. This clean exit ensures that the company's resources remain unaffected by the failed joint venture attempt.

Regulatory Compliance

The termination announcement was made in compliance with Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The company filed the intimation with BSE Limited on January 23, 2026, maintaining transparency with stakeholders regarding this corporate development.

Duncan Engineering Limited, formerly known as Schrader Duncan Limited, operates from its registered office and plant located at F-33, Ranjangaon MIDC, Karegaon, Tal. Shirur, Dist. Pune. The company continues its regular business operations following this joint venture termination.

Duncan Engineering Limited announced its unaudited financial results for the third quarter of FY26 ended December 31, 2025, presenting a mixed performance with year-over-year profit growth offset by sequential decline and revenue challenges.

Financial Performance Overview

The company's quarterly results showed contrasting trends across different metrics and timeframes:

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, revealed more pronounced challenges in the company's operational performance:

Cost Structure and Operational Metrics

The company's expense management showed varying trends across different cost components. Cost of materials consumed decreased to ₹951.01 crores in Q3FY26 from ₹1,054.65 crores in Q3FY25, representing a 9.8% reduction. Employee benefits expense remained relatively stable at ₹511.99 crores compared to ₹510.28 crores in the previous year quarter. Other expenses increased to ₹322.41 crores from ₹263.23 crores, marking a 22.5% rise year-over-year.

Corporate Developments

During the quarter, Duncan Engineering incorporated a wholly owned overseas subsidiary in the Kingdom of Saudi Arabia. As of the reporting date, the subsidiary had not commenced operations and no capital had been infused. The subsidiary did not have any assets, liabilities, income, or expenses, and therefore did not contribute to the company's financial performance for the period under review.

Tax and Comprehensive Income

The company's tax expense for Q3FY26 was ₹33.93 crores, higher than ₹24.89 crores in Q3FY25. Total comprehensive income, which includes other comprehensive income components, stood at ₹108.54 crores for the quarter compared to ₹70.67 crores in the corresponding previous year quarter.

Capital Structure

The company maintained a stable capital structure with paid-up equity share capital remaining unchanged at ₹369.60 crores, consisting of shares with a face value of ₹10 each. Other equity reserves stood at ₹5,315.22 crores as of March 31, 2025.

The Board of Directors approved these unaudited financial results in their meeting held on January 22, 2026, after review and recommendation by the audit committee. The statutory auditors S S Kothari Mehta & Company LLP issued a limited review report with unmodified opinion on the results.