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Pilani Investment & Industries Corporation Ltd

| Quarterly Financial Results Q3 FY 2025-26

BEARISH SENTIMENT

Report Source

⬤7th Feb 26

Summary : Pilani Investment and Industries Corporation Limited reported significantly lower profits for Q3 FY26 and 9M FY26, with consolidated net profit turning negative for the nine-month period, primarily due to reduced investment income and high finance costs, alongside new Labour Code liabilities.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Finance Cost: Standalone Q3 FY26 Rs. 4,216.11 Lakhs, Consolidated Q3 FY26 Rs. 4,216.11 Lakhs.
  2. Employee Benefits Expense: Standalone Q3 FY26 Rs. 204.54 Lakhs, Consolidated Q3 FY26 Rs. 204.57 Lakhs.
  3. Total Expenses: Standalone Q3 FY26 Rs. 4,593.34 Lakhs, Consolidated Q3 FY26 Rs. 4,657.17 Lakhs.
  4. Interest Income: Standalone Q3 FY26 Rs. 5,814.39 Lakhs, Consolidated Q3 FY26 Rs. 5,821.07 Lakhs.
  5. Dividend Income: Standalone Q3 FY26 Rs. 0 Lakhs, Consolidated Q3 FY26 Rs. 7.74 Lakhs.
  6. Net gain on fair value changes: Standalone Q3 FY26 Rs. 25.83 Lakhs, Consolidated Q3 FY26 Rs. 27.87 Lakhs.
  7. Rental Income: Standalone Q3 FY26 Rs. 27.59 Lakhs, Consolidated Q3 FY26 Rs. 29.33 Lakhs.
  8. Total Revenue from operations: Standalone Q3 FY26 Rs. 5,878.54 Lakhs, Consolidated Q3 FY26 Rs. 5,960.32 Lakhs.
  9. Net Worth (Consolidated 9M FY26): Rs. 1,754,966.83 Lakhs.
  10. Debt-Equity Ratio (Consolidated 9M FY26): 0.15 times.
  11. Current Ratio (Consolidated 9M FY26): 0.82 times.
  12. Total Debts to Total Assets (Consolidated 9M FY26): 0.09 times.
  13. Consolidated results include subsidiaries and an associate.
  14. Both standalone and consolidated unaudited financial results are presented.
  15. Consolidated results include Parent, two subsidiaries (PIC Realcon Ltd., PIC Properties Ltd.), and one associate (Aditya Birla Real Estate Ltd.).

Corporate Overview

  1. India
  2. Assessing incremental impact of new Labour Codes on employee benefit plans, leading to additional liability.
  3. Investment and financing activities in India.
  4. Formal and factual, reporting financial results.
  5. Interest Income
  6. Dividend Income
  7. Net gain on fair value changes
  8. Rental Income
  9. Other Income
  10. Sale of products (Trading goods) (Consolidated only)

Risk Factors

  1. Volatile investment and financing income.
  2. Rising finance costs impacting profitability.
  3. Uncertainty from new Labour Code implementation.
  4. Underperformance of subsidiaries and associates.

Key Drivers

  1. Clarity on new Labour Codes impact.
  2. Improved returns from investment activities.
  3. Effective management of high finance costs.
  4. Stronger contributions from subsidiaries, associates.

Auditor’s Report

  1. Review conclusion, not an audit opinion.
  2. No material misstatement found in the financial statements.
  3. Review of subsidiary and associate results based on other auditors' reports.

Board Commentary

  1. Additional liability of Rs. 31.78 lakhs recognized for past service cost due to Labour Codes.
  2. Government notified new Labour Codes (Wages, Industrial Relations, Social Security, Occupational Safety, Health and Working Conditions Code).

Corporate Governance

  1. Audit Committee reviewed and approved the results.

Management Discussion & Analysis

Future Strategy

  1. Monitoring finalisation of Central and State Rules and clarifications regarding Labour Codes.
  2. Providing appropriate accounting treatment based on Labour Code developments.

Operational Focus Areas

  1. Assessing and recognizing impact of new Labour Codes on employee benefits.

Risk Control Measures

  1. Management is monitoring Labour Code finalization and clarifications.

Critical Risks

  1. Uncertainty regarding the full financial impact of new Labour Codes.