Announced Sat, 14 Feb · 20:37 IST

Financial Results 31st December 2025

Revenue Growth 20pctExceptional ItemRelated Party TransactionsResults View source PDF

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Rainbow Foundations posted Q3 FY26 revenue of Rs 38.37 crore, up 12.2% year-on-year from Rs 34.18 crore. For the nine months ended December 2025, revenue grew a stronger 24.4% to Rs 123.49 crore versus Rs 99.27 crore a year ago. However, Q3 profit after tax fell sharply to Rs 72.89 lakh from Rs 154.18 lakh a year earlier (down about 53%), weighed down by a one-time exceptional provision of Rs 69.35 lakh towards gratuity following the new Labour Codes notified in November 2025. Nine-month PAT also declined to Rs 320.43 lakh from Rs 412.62 lakh. Interest costs remain heavy at Rs 8.96 crore for the quarter (Rs 26.44 crore for 9M), continuing to compress margins. The auditor issued an unqualified limited review report.

Likely market impact

Short-term PAT looks weak mainly due to a one-off gratuity provision, so core operating profitability is largely intact. The Rs 50 crore corporate guarantee for the wholly owned subsidiary's debenture issue expands contingent obligations on the parent and is worth monitoring, though the subsidiary is 100% owned.