Josts engineering company Limited has announced the sale of its material subsidiary JECL Engineering Limited for an aggregate consideration of Rs. 72 crores. The company informed BSE on February 6, 2026, about entering into a Share Purchase Agreement dated February 5, 2026, with buyer Rahul Dhoot for the complete divestment of its subsidiary.

Transaction Details

The share purchase agreement involves the sale of 100% shareholding in JECL Engineering Limited between Josts Engineering Company Limited, Mr. Jai Prakash Agarwal, Mr. Vishal Jain, and JECL Engineering Limited as sellers, with Mr. Rahul Dhoot as the buyer. The transaction value stands at Rs. 72,00,00,000 (Rupees Seventy Two Crores only), subject to closing date adjustments.

Subsidiary's Financial Contribution

JECL Engineering Limited has been a significant contributor to the parent company's consolidated financials. The subsidiary's contribution varied across different reporting periods, showing its material importance to the group's operations.

Regulatory Compliance and Approvals

The transaction requires approval from shareholders of Josts Engineering Company Limited through postal ballot including e-voting, as mandated under Regulations 24(5) and 37A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed that this transaction does not fall within related party transactions and the buyer does not belong to the promoter or promoter group.

Transaction Structure

The sale is structured outside the Scheme of Arrangement and will be subject to achievement of closing conditions and terms of the definitive agreements. Upon completion of the sale, JECL Engineering Limited will cease to be a subsidiary of Josts Engineering Company Limited. The transaction is not classified as a slump sale, making amalgamation or merger disclosures not applicable.

The company has provided the requisite disclosures under Regulation 30 read with Schedule III of the SEBI Listing Regulations and SEBI Master Circular, ensuring full compliance with regulatory requirements for the subsidiary divestment.

Jost's Engineering Company Limited has successfully conducted its rescheduled board meeting on February 5, 2026, announcing Q3FY26 financial results and approving a major subsidiary divestment worth ₹73 crores. The meeting, originally postponed from January 31, 2026, addressed significant corporate developments including the sale of its material subsidiary.

Q3FY26 Financial Performance

The company reported standalone financial results for the quarter and nine months ended December 31, 2025. The quarterly performance showed mixed results across different business segments.

Segment-wise Revenue Performance

The company's business segments showed varied performance during the quarter, with Engineered Products contributing significantly to overall revenue.

Major Subsidiary Sale Transaction

The board approved the sale of 100% shareholding and assets in material subsidiary JECL Engineering Limited to Mr. Rahul Dhoot for ₹73 crores, subject to shareholder approval through postal ballot.

Consolidated Financial Results

The consolidated results, including subsidiaries, showed total revenue of ₹7,822 lakhs for Q3FY26 compared to ₹5,205 lakhs in Q3FY25. Net profit after tax stood at ₹116 lakhs for the quarter.

Exceptional Items and Labour Code Impact

The company recognized exceptional items of ₹261 lakhs in Q3FY26, primarily due to the implementation of Labour Codes notified by the Government of India on November 21, 2025. This resulted in increased provision for defined benefit obligations, impacting the quarterly results.

Committee Reconstitution

The board approved reconstitution of key committees with immediate effect. The Share Transfer Committee now comprises Mr. Sanjiv Swarup as Chairman, Mrs. Rekha Bagry as Member, and Mr. Jai Prakash Agarwal as Member. The Land Monetisation Committee was reconstituted with Mr. Sanjiv Swarup as Chairman and Mr. Jai Prakash Agarwal as Member.