SBI Mutual Fund has announced a substantial reduction in its shareholding in esab india Limited, decreasing its stake from 9.23% to 6.56% of the paid-up share capital through a market sale transaction completed on February 19, 2026.

Transaction Details

The mutual fund sold 4,11,743 shares representing 2.67% of ESAB India's paid-up share capital through market transactions. This divestment brings SBI Mutual Fund's total holding to 10,09,490 shares, equivalent to 6.56% of the company's equity base.

Regulatory Compliance

The disclosure was made under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. SBI Mutual Fund's Chief Compliance Officer and Company Secretary, Vinaya Datar, communicated the shareholding change to ESAB India's management on February 20, 2026.

The notification indicates that this represents a decrease of 2% from the previous disclosure made under the same regulation on March 02, 2021, when the reported holding was 8.59% of the paid-up share capital.

Company Information

ESAB India Limited's equity share capital remains unchanged at Rs 153,930,200, consisting of 1,53,93,020 equity shares with a face value of Rs. 10 each. The company's shares are listed on both BSE Limited and the National Stock Exchange of India Limited.

Market Impact

The transaction was executed through open market sales, with SBI Mutual Fund operating under its various schemes maintaining its position as a significant institutional investor in ESAB India, albeit with a reduced stake. The mutual fund's decision to trim its holding reflects portfolio rebalancing activities across its investment schemes.

SBI Funds Management Limited, acting as the investment manager for SBI Mutual Fund, completed all necessary regulatory filings with both stock exchanges where ESAB India's shares are traded, ensuring full compliance with disclosure requirements for substantial shareholding changes.

ESAB India Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, demonstrating steady operational performance across key financial metrics. The fabrication technology company reported comprehensive results that reflect its continued market position in the welding and cutting equipment sector.

Financial Performance Overview

The company's financial performance for Q3FY26 showed consistent revenue generation with total income reaching Rs 37,990 lakhs compared to Rs 34,075 lakhs in the corresponding quarter of the previous year. Net profit after tax for the quarter stood at Rs 4,300 lakhs, while the nine-month period delivered stronger results with net profit of Rs 16,314 lakhs on total income of Rs 111,669 lakhs.

Dividend Declaration

The Board of Directors declared a second interim dividend of Rs 25 per equity share of Rs 10 each, representing 250% of the face value for the financial year 2025-26. This dividend declaration will result in a total outflow of Rs 38,48,25,500 subject to tax deduction at source where applicable. The dividend will be paid to equity shareholders on or before March 6, 2026, with the record date set for February 14, 2026.

Operational Highlights

The company operates in a single segment of Fabrication Technology as determined by the Chief Operating Decision Maker in accordance with Ind AS 108. For the nine-month period, revenue from operations increased to Rs 111,240 lakhs from Rs 100,575 lakhs in the corresponding period of the previous year. Total comprehensive income for the nine months reached Rs 16,283 lakhs compared to Rs 12,799 lakhs in the previous year.

Exceptional Items Impact

The quarter results included exceptional items worth Rs 1,365 lakhs related to increased gratuity liability arising from the Government of India's notification of new Labour Codes on November 21, 2025. These codes consolidate twenty-nine existing labour laws and introduce changes including uniform wage definitions and enhanced employee benefits. The company classified this impact as an exceptional item due to its non-recurring nature.

Corporate Governance

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on February 10, 2026. The meeting commenced at 20:20 hours and concluded at 21:00 hours. Deloitte Haskins & Sells, the company's statutory auditors, conducted a limited review and issued an unmodified review report on these results.