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Indo Tech Transformers Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤4th Feb 26

Summary : Indo-Tech Transformers reported strong revenue and profit growth, with an unqualified review, despite new labor code liabilities.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of materials consumed for Q3 FY26: Rs. 15,045 lakhs.
  2. Employee benefits expense for Q3 FY26: Rs. 1,043 lakhs.
  3. Other expenses for Q3 FY26: Rs. 1,683 lakhs.
  4. Revenue from operations for Q3 FY26: Rs. 19,630 lakhs.
  5. Revenue from operations for 9M FY26: Rs. 54,309 lakhs.
  6. Paid-up equity share capital: Rs. 1,062 lakhs.
  7. Total reserves (Other equity) as of 31-Mar-25: Rs. 27,013 lakhs.
  8. Unaudited Financial Results are Standalone.

Corporate Overview

  1. Registered office in Tamil Nadu, India.
  2. Assessing and providing for additional liabilities due to new Labour Codes.
  3. Manufacture and sale of transformers.
  4. Formal and compliant with regulatory disclosure requirements.
  5. Only one business segment: manufacture and sale of transformers.

Risk Factors

  1. Uncertainty regarding new labor codes.
  2. Impact of future regulatory clarifications.
  3. Reliance on single business segment.

Key Drivers

  1. Strong revenue growth quarter-on-quarter.
  2. Significant nine-month profit increase.
  3. Unqualified auditor's review report.
  4. Proactive management of regulatory changes.

Auditor’s Report

  1. Unqualified review report.

Board Commentary

  1. Financial impact and ongoing assessment of new Labour Codes.
  2. Government of India notified four Labour Codes on November 21, 2025, consolidating 29 existing labour laws.
  3. Company assessed and provided for additional liability of Rs. 58.57 lakhs towards gratuity and Rs. 4.98 lakhs towards leave encashment.

Corporate Governance

  1. Results reviewed by the Audit Committee and approved by the Board of Directors.

Management Discussion & Analysis

Future Strategy

  1. Monitoring finalisation of Central/State Rules and clarifications on Labour Codes for accounting effect.

Performance Drivers

  1. Increased revenue from operations.
  2. Growth in profit after tax.

Risk Control Measures

  1. Assessed and provided for additional liability of Rs. 58.57 lakhs for gratuity and Rs. 4.98 lakhs for leave encashment due to new Labour Codes.
  2. Continuously monitoring finalisation of rules and clarifications from the Government.

Critical Risks

  1. Financial impact and ongoing assessment of new Labour Codes (Code on Wages, Industrial Relations Code, Code on Social Security, Occupational Safety, Health and Working Conditions Code).