Tamilnadu Petroproducts Limited has announced a strategic investment in renewable energy infrastructure through its equity participation in Navia Three Power Private Limited (NTPPL). The company disclosed this development in a regulatory filing dated February 6, 2026, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Investment Details and Structure

The petrochemical manufacturer has entered into an arrangement with NTPPL to procure solar power capacity of approximately 19.8 MWp (DC)/13.2 MW (AC). To facilitate this power procurement agreement, Tamilnadu Petroproducts Limited has committed to invest up to ₹7,32,60,000 in NTPPL's equity capital through a phased approach.

Strategic Rationale and Compliance

The investment serves a dual purpose of securing renewable energy supply while achieving regulatory compliance. By acquiring up to 26% shareholding in NTPPL, Tamilnadu Petroproducts Limited aims to qualify as a captive user under the Electricity Act, 2003. This strategic move is designed to optimize the company's power costs through direct access to solar energy generation.

The company has confirmed that this acquisition does not fall within the purview of related party transactions, with no promoter, promoter group, or group companies having any interest in NTPPL.

About Navia Three Power Private Limited

NTTPL was incorporated under the Companies Act, 2013, on August 12, 2024, as a special purpose vehicle. The company operates from its registered office located at 3rd Floor, Tower 10B DLF Cyber City DLF QE, Gurgaon, Haryana. Its primary objective focuses on developing wind-solar power generation facilities in Tamil Nadu.

Transaction Structure and Timeline

The investment will be executed through cash consideration, with the equity subscription planned in multiple tranches. The company has indicated that no specific governmental or regulatory approvals are required for this acquisition. The transaction structure allows Tamilnadu Petroproducts Limited to maintain operational flexibility while securing long-term renewable energy access.

This strategic investment aligns with the growing trend of industrial companies investing in captive renewable energy projects to reduce power costs and ensure energy security. The solar power facility will contribute to Tamilnadu Petroproducts Limited's operational efficiency while supporting its sustainability objectives.

Tamilnadu Petroproducts Limited delivered impressive profitability growth in Q3FY26 despite facing revenue headwinds. The company reported consolidated net profit of ₹199 crores compared to ₹117 crores in the corresponding quarter last year, marking a significant 70% year-on-year increase. However, quarterly revenue declined to ₹4.2 billion from ₹4.6 billion in Q3FY25.

Strong Profitability Performance

The company's operational efficiency improvements were evident in its EBITDA performance. Q3FY26 EBITDA surged to ₹311 crores from ₹186 crores in the previous year, representing a substantial 67% growth. More importantly, the EBITDA margin expanded significantly to 7.39% compared to 4.05% in Q3FY25, demonstrating enhanced operational leverage.

Detailed Financial Analysis

The standalone financial performance also showed robust growth with net profit after tax increasing to ₹1,764 lakhs compared to ₹1,031 lakhs in Q3FY25. For the nine-month period ended 31st December 2025, standalone net profit reached ₹8,293 lakhs, significantly higher than ₹2,651 lakhs in the same period last year.

Operational Efficiency Gains

The company's improved margin performance reflects better cost management across operations. Total expenses for the standalone business were ₹40,316 lakhs in Q3FY26 compared to ₹44,967 lakhs in Q3FY25. Major expense components included cost of materials consumed at ₹19,212 lakhs, power and fuel expenses of ₹7,849 lakhs, and referral charges of ₹4,987 lakhs for the quarter.

Key Corporate Developments

The company continues to address the lease renewal for land on which one of its manufacturing units operates. The lease expired on 12th June 2020, and a renewal request has been filed with the Government of Tamil Nadu. Management remains confident of obtaining the lease renewal and has accounted for the Right of Use Asset based on the expected lease renewal period.

Additionally, the company has assessed the impact of the four Labour Codes notified by the Government of India, with an incremental impact of ₹26.90 lakhs disclosed. Exceptional items for the nine-month period represent expenditure of ₹59 lakhs related to ongoing plant restoration activities following disruption caused by Cyclone Michaung.