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Orient Electric Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤22nd Jan 26

Summary : Orient Electric reported increased revenue and nine-month profit, declared an interim dividend, while navigating ongoing legal and regulatory challenges.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Q3 FY26 Total Expenses: ₹ 864.42 crores.
  2. 9M FY26 Total Expenses: ₹ 2,301.13 crores.
  3. Cost of raw materials Q3 FY26: ₹ 192.42 crores.
  4. Purchase of traded goods Q3 FY26: ₹ 411.09 crores.
  5. Q3 FY26 Revenue from Operations: ₹ 906.45 crores.
  6. 9M FY26 Revenue from Operations: ₹ 2,378.14 crores.
  7. Electrical Consumer Durables Q3 FY26: ₹ 646.72 crores.
  8. Lighting & Switchgear Q3 FY26: ₹ 259.73 crores.
  9. Show cause notices for Haryana Entry Tax (₹ 33.75 crores) pending.
  10. Ongoing GST HSN classification litigation, appeals filed.
  11. Confirmed GST demand in Andhra Pradesh (₹ 5.74 crores).
  12. Total Segment Assets as of Dec 31, 2025: ₹ 1,596.76 crores.
  13. Total Segment Liabilities as of Dec 31, 2025: ₹ 861.60 crores.
  14. Unaudited financial results for the Company, not explicitly specified as standalone or consolidated.

Corporate Overview

  1. Ongoing legal and regulatory litigations regarding taxes and classifications.
  2. Assessment of financial impact from new Labour Codes.
  3. Manufacturing and sale of electrical consumer durables.
  4. Manufacturing and sale of lighting and switchgear products.
  5. Factual and formal in reporting board decisions and financial results.
  6. Electrical Consumer Durables
  7. Lighting & Switchgear

Risk Factors

  1. Ongoing legal and regulatory challenges.
  2. Impact of new Labour Codes.
  3. Confirmed demand in Andhra Pradesh.
  4. Pending appeals for demand orders.

Key Drivers

  1. Interim dividend declared for shareholders.
  2. Revenue from operations increased significantly.
  3. Nine-month profit shows healthy growth.
  4. Favorable orders in some GST cases.

Auditor’s Report

  1. Limited review conclusion, not an audit opinion.
  2. Nothing came to attention indicating material misstatement.

Board Commentary

  1. Interim Dividend of ₹ 0.75 per equity share declared.
  2. Record Date fixed as Thursday, January 29, 2026.
  3. Dividend to be paid within 30 days of declaration.
  4. Financial impact from new Labour Codes.
  5. Outcome of pending tax litigations and appeals.
  6. New Labour Codes notified, financial impact being assessed.
  7. Show cause notices for Haryana Entry Tax pending adjudication.
  8. Litigation regarding GST HSN classification ongoing.
  9. Favorable rectification order received for input tax credit demand.

Corporate Governance

  1. Audit Committee reviewed financial results.

Management Discussion & Analysis

Performance Drivers

  1. Increased revenue from operations for the quarter and nine months.
  2. Growth in Electrical Consumer Durables segment revenue.
  3. Growth in Lighting & Switchgear segment revenue.

Risk Control Measures

  1. Company believes it has strong case on merits for litigations.
  2. Appeals/writ petitions filed for pending demand orders.

Critical Risks

  1. Uncertainty regarding new Labour Codes' financial impact.
  2. Pending tax litigations and show cause notices.
  3. Confirmed demand in Andhra Pradesh GST case.