Josts Engineering Company Limited has issued a postal ballot notice dated February 5, 2026, seeking shareholder approval for the sale of its material subsidiary JECL Engineering Limited to Mr. Rahul Dhoot for Rs. 73 crores. The company informed BSE on February 7, 2026, about the postal ballot process with remote e-voting scheduled from February 10 to March 11, 2026.

Updated Transaction Details

The revised share purchase agreement involves the sale of 100% shareholding in JECL Engineering Limited for an updated consideration structure. The transaction includes Rs. 72 crores for the share sale and an additional Rs. 1 crore for trademark assignment, bringing the total consideration to Rs. 73 crores.

E-Voting Process and Timeline

The company has engaged National Securities Depository Limited (NSDL) to provide remote e-voting facility to shareholders. The postal ballot notice has been sent electronically to members whose email addresses are registered with the company, depositories, or registrar.

Regulatory Compliance Requirements

The transaction requires special resolution approval under Regulation 24(5) and 37A of SEBI Listing Regulations, as JECL Engineering is classified as a material subsidiary. The sale also falls under Section 180(1)(a) of the Companies Act, 2013, requiring shareholder consent for disposal of substantially the whole undertaking.

Strategic Rationale for Divestment

Josts Engineering's board has outlined the strategic reasoning behind the subsidiary sale as part of resource reallocation towards the Engineering Products Division (EPD). The EPD business has demonstrated strong growth with a CAGR of 38% over the past 4 years, while the Material Handling Division showed only 6% CAGR during the same period.

The company plans to strengthen its EPD service offerings through three service centres, with two already NABL accredited and preparations underway for NABL accreditation for Noise, Vibration & Harshness (NVH) services to serve automotive, aerospace, defence and engineering customers.

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.