FINANCIAL RESULTS FOR THE QUARTER ENDED DEMBER 31, 2025.
FEDDERSHOL · price
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Fedders Holding Ltd reported consolidated total income of ₹7,968 lakhs for Q3 FY26 (vs ₹8,873.55 lakhs in Q3 FY25) and ₹21,061.32 lakhs for 9M FY26, down from ₹31,585.52 lakhs in 9M FY25, reflecting a ~33% revenue decline year-on-year. Despite the revenue fall, consolidated net profit jumped to ₹3,669.64 lakhs in Q3 FY26 (from ₹403.39 lakhs) and to ₹6,757.06 lakhs for 9M FY26 (from ₹3,108.81 lakhs), aided by other income of ₹3,726.16 lakhs including a ₹26.44 crore trade receivable reversal at the subsidiary level. Standalone results remained negligible with a net loss of ₹7.22 lakhs in Q3 FY26. The statutory auditor issued a qualified conclusion on the consolidated results, flagging multiple issues at subsidiary Fedders Electric and Engineering Limited — non-transfer of ₹47.65 lakhs to IEPF, missing fixed asset and scrap inventory records, improper accounting of preference shares under Ind AS 109, unsupported travel expenses, and inadequate documentation for the ₹26.44 crore receivable reversal.
The PAT surge looks strong on the surface, but the auditor's qualified opinion and significant revenue decline raise red flags about the quality and sustainability of earnings. Shareholders should watch for the outcome of the November 2024 income tax search and clarity on the subsidiary-level accounting irregularities before drawing comfort from the profit jump.