Ultracab India Q3FY26 Results: Net Profit Falls 61.6% Despite Revenue Growth of 9.0%

Ultracab (India) Limited announced its unaudited standalone financial results for the quarter and nine months ended December 31, 2025, showing mixed performance with revenue growth offset by declining profitability. The Board of Directors approved these results in their meeting held on February 03, 2026. Quarterly Financial Performance The company's Q3FY26 results demonstrated contrasting trends in revenue and profitability metrics. While revenue showed healthy growth, profit margins came under pressure during the quarter. Metric Q3FY26 Q3FY25 Change (%) Revenue from Operations ₹6,240.56 lakhs ₹5,724.03 lakhs +9.0% Total Income ₹6,265.56 lakhs ₹5,729.56 lakhs +9.4% Net Profit ₹103.72 lakhs ₹269.99 lakhs -61.6% Earnings per Share (Basic) ₹0.08 ₹0.28 -71.4% The company's revenue from operations grew to ₹6,240.56 lakhs in Q3FY26 compared to ₹5,724.03 lakhs in Q3FY25. Total income increased to ₹6,265.56 lakhs from ₹5,729.56 lakhs, reflecting a 9.4% year-on-year growth. However, net profit declined significantly to ₹103.72 lakhs from ₹269.99 lakhs in the corresponding quarter of the previous year. Nine-Month Performance Analysis The nine-month results for the period ended December 31, 2025, showed similar patterns with revenue growth accompanied by profit decline. Parameter 9M FY26 9M FY25 Change (%) Revenue from Operations ₹18,020.09 lakhs ₹16,648.17 lakhs +8.2% Total Income ₹18,067.62 lakhs ₹16,662.96 lakhs +8.4% Net Profit ₹425.96 lakhs ₹733.36 lakhs -41.9% Earnings per Share (Basic) ₹0.35 ₹0.77 -54.5% For the nine-month period, revenue from operations increased 8.2% to ₹18,020.09 lakhs compared to ₹16,648.17 lakhs in the previous year. Net profit for the nine months declined 41.9% to ₹425.96 lakhs from ₹733.36 lakhs in the corresponding period of FY25. Cost Structure and Expense Analysis The company's expense structure showed notable changes during Q3FY26, with cost of materials consumed representing the largest component at ₹5,439.78 lakhs compared to ₹4,961.91 lakhs in Q3FY25. Employee benefits expense increased to ₹138.17 lakhs from ₹116.82 lakhs, while financial costs decreased to ₹86.32 lakhs from ₹112.26 lakhs in the previous year quarter. Financial Position and Key Ratios The company's financial position showed improvement in several key metrics as of December 31, 2025. Financial Metric Dec 31, 2025 Dec 31, 2024 Net Worth ₹9,152.32 lakhs ₹4,529.56 lakhs Paid-up Equity Share Capital ₹2,459.16 lakhs ₹1,908.45 lakhs Debt Equity Ratio 0.47 1.42 Interest Service Coverage Ratio 2.89 4.44 The company's net worth increased substantially to ₹9,152.32 lakhs from ₹4,529.56 lakhs in the previous year, indicating strengthened financial position. The debt equity ratio improved significantly to 0.47 from 1.42, reflecting better capital structure management. Regulatory Compliance and Tax Matters Ultracab (India) Limited has adopted the new tax regime, recognizing provision for income tax at 25.17% for the quarter and nine months ended December 31, 2025. The company's financial results have been prepared in accordance with Indian Accounting Standards (Ind AS) and have undergone limited review by statutory auditors Bhavin Associates, Chartered Accountants. The results were reviewed by the Audit Committee and approved by the Board of Directors on February 03, 2026. Ultracab (India) Limited has entered into a strategic Brand Usage Agreement with Jigar Cables Limited on January 05, 2026, as disclosed under Regulation 30 of SEBI LODR Regulations. The agreement represents a significant brand licensing arrangement that will allow the related party to leverage Ultracab's established brand presence in the cables industry. Agreement Structure and Terms The Brand Usage Agreement grants Jigar Cables Limited non-exclusive, non-transferable rights to use the ULTRACAB brand, trademark, and trade name solely for manufacturing and selling products under the established brand. The agreement's effectiveness remains conditional upon receiving requisite approval from the company's members. Parameter: Details Agreement Date: January 05, 2026 Duration: Five years Brand Rights: Non-exclusive, non-transferable Usage Scope: Manufacturing and sale of products Approval Required: Member approval pending Financial Terms and Revenue Structure Under the agreement, Ultracab will receive financial compensation for granting brand usage rights and providing marketing support. The company has structured the arrangement to generate ongoing revenue from the brand licensing. Financial Aspect: Details Commission Rate: 2.00% per annum Calculation Base: Basic sales of products sold under ULTRACAB brand Payment Structure: Annual royalty payments Additional Support: Marketing support included Related Party Transaction Details The agreement constitutes a related party transaction as Jigar Cables Limited is a related party within the meaning of SEBI LODR Regulations. A director of Ultracab holds equity interest in Jigar Cables Limited, while relatives of the director hold both managerial positions and equity stakes in the counterparty. Relationship Aspect: Details Transaction Type: Related party transaction Arm's Length Basis: Yes Director Interest: Equity interest in JCL Family Involvement: Relatives hold positions and equity Ultracab Shareholding: No stake in JCL Impact Assessment and Compliance The Brand Usage Agreement has been structured to ensure minimal impact on Ultracab's operations while generating additional revenue streams. The company has confirmed that the arrangement does not impose any special restrictions or create management control issues. Key impact considerations include: No impact on management or control of Ultracab No special, onerous, or financial restrictions imposed Quantifiable negative impact assessed as nil Standard provisions applicable to brand usage arrangements Compliance with SEBI LODR Regulations maintained The agreement demonstrates Ultracab's strategy to monetize its brand value while expanding market presence through strategic partnerships. The five-year term provides stability for both parties while the 2.00% annual commission structure ensures ongoing revenue generation from the brand licensing arrangement. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. 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