Elgi Rubber Company Limited has informed the Exchange about reversal of interest receivable from overseas wholly owned subsidiaries for the quarter ended December 31, 2025
ELGIRUBCO · price
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Elgi Rubber Company reported very weak Q3 FY26 results, with a standalone loss after tax of Rs. 94.81 crore and consolidated loss of Rs. 28.67 crore, largely driven by exceptional charges. These include full impairment of investments and loans (Rs. 76.45 crore) extended to its step-down Dutch subsidiary Rubber Resources B.V., which has filed for voluntary bankruptcy in the Netherlands. The board also approved reversal of Rs. 2.22 crore in interest receivable from three overseas wholly-owned subsidiaries (USA, Brazil, and Netherlands) citing recovery uncertainty. On consolidated basis, 9M FY26 revenue was nearly flat at Rs. 280.16 crore vs Rs. 286.70 crore a year ago, but the company swung from a Rs. 12.66 crore profit to a Rs. 36.19 crore loss. Additionally, the board approved sale of 7.24 acres of non-core land in Coimbatore to unrelated buyers, with proceeds earmarked for debt reduction. Auditors issued an unmodified opinion but drew attention to the subsidiary bankruptcy as a non-adjusting subsequent event.
Shareholders face significant near-term pain with massive impairments and the loss of a key overseas subsidiary to bankruptcy, which will likely weigh on the stock price. The proposed land sale is a positive step toward deleveraging, but underlying profitability remains under pressure and the company's international footprint has been materially weakened.