Outcome of the Board Meeting for unaudited Financial Results for the quarter and nine months ended 31/12/2025
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SAL Automotive Limited reported weak Q3 FY26 results, with revenue from operations falling to Rs. 8,778 lakhs from Rs. 9,502 lakhs in Q3 FY25, a decline of around 7.6% year-on-year, and dropping sharply from Rs. 10,784 lakhs in the previous quarter. Profit after tax for the quarter nearly halved to Rs. 61 lakhs versus Rs. 140 lakhs last year. For the nine-month period, revenue grew modestly by about 2.1% to Rs. 29,565 lakhs, but PAT fell roughly 25% to Rs. 333 lakhs from Rs. 445 lakhs. The company recorded an exceptional item of Rs. 58 lakhs in Q3 due to one-time impact of the new Labour Codes on gratuity and leave liabilities. The Agriculture Implements segment was the main drag, while the Automobile Components segment actually grew year-on-year. Statutory auditor Mangla Associates issued an unqualified limited review report with no qualifications.
Profitability has compressed sharply despite stable topline, with operating margins falling from over 5% to under 2% quarter-on-quarter, signalling cost pressure and weak demand in the agriculture segment. Shareholders should expect short-term pressure on the stock given the steep earnings decline, though the core auto components business remains healthy and the exceptional charge is non-recurring.