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Munjal Showa Q3 FY26 PAT Jumps 82% YoY to ₹10.91 Cr; Revenue Up 9.6%
Munjal Showa Limited reported a strong financial performance for the quarter ended December 31, 2025, with Revenue from Operations growing 9.6% YoY to ₹349.68 crore. Net Profit (PAT) surged by 82.4% YoY to ₹10.91 crore, up from ₹5.98 crore in the previous year's corresponding quarter. The results were achieved despite an exceptional charge of ₹2.20 crore related to the impact of new Labour Codes on gratuity liabilities. For the nine-month period, PAT stands at ₹21.92 crore compared to ₹19.95 crore in the prior year.
Key Highlights
Revenue from operations increased to ₹349.68 crore in Q3 FY26 from ₹319.08 crore in Q3 FY25.
Net Profit (PAT) rose significantly to ₹10.91 crore, resulting in an EPS of ₹2.73 compared to ₹1.49 YoY.
Profit before tax and exceptional items more than doubled to ₹17.01 crore from ₹8.05 crore in the year-ago quarter.
Recognized a one-time exceptional charge of ₹2.20 crore due to increased gratuity liability from new Labour Codes.
Total expenses for the nine-month period included ₹3.23 crore in separation costs for a Voluntary Retirement Scheme (VRS).
💼 Action for Investors
Investors should view the sharp expansion in net margins and profit growth positively, especially as it comes despite one-off labor-related costs. The company's ability to grow revenue and significantly improve bottom-line efficiency suggests strong operational tailwinds in the auto-component segment.
Munjal Showa Q3 PAT Jumps 82% YoY to ₹10.9 Cr; Revenue Up 9.6%
Munjal Showa reported a strong performance for the quarter ended December 31, 2025, with revenue from operations growing 9.6% YoY to ₹349.68 crore. Net profit surged by 82.4% YoY to ₹10.91 crore, despite an exceptional charge of ₹2.20 crore related to the impact of new Labour Codes. The company's EPS improved significantly to ₹2.73 from ₹1.49 in the same quarter last year. For the nine-month period, the company maintained steady growth with a PAT of ₹21.92 crore compared to ₹19.95 crore in the previous year.
Key Highlights
Revenue from operations increased to ₹34,968.17 lakhs in Q3 FY26 from ₹31,908.48 lakhs in Q3 FY25.
Net Profit (PAT) grew by 82.4% YoY to ₹1,090.72 lakhs despite a ₹220.02 lakh exceptional charge.
Earnings Per Share (EPS) rose to ₹2.73 for the quarter, up from ₹1.49 in the year-ago period.
Exceptional item of ₹220.02 lakhs recognized due to increased gratuity liability from new Labour Codes.
Total expenses for 9M FY26 included ₹322.51 lakhs in separation costs for employees opting for Voluntary Retirement Scheme (VRS).
💼 Action for Investors
The strong bottom-line growth and margin improvement are positive signals for the stock. Investors should monitor the impact of the new Labour Codes on future operating costs and the company's ability to maintain revenue momentum in the auto component sector.
Munjal Showa Receives Income Tax Demand Notice of INR 703.83 Lakhs
Munjal Showa Limited has received a tax demand notice of INR 703.83 Lakhs, including interest, for the Assessment Year 2022-23. The Income Tax Department assessed the company's income at INR 2768.90 Lakhs, which is significantly higher than the returned income of INR 489.48 Lakhs. The primary reason for this discrepancy is an adjustment of INR 2254.99 Lakhs related to royalty and other payments. The company has stated it will challenge this order before the Income Tax Appellate Tribunal (ITAT) based on strong merits.
Key Highlights
Total tax demand of INR 703.83 Lakhs issued for Assessment Year 2022-23
Assessed income revised to INR 2768.90 Lakhs against reported INR 489.48 Lakhs
Adjustment of INR 2254.99 Lakhs made specifically regarding royalty payments
Company to file an appeal before the Income Tax Appellate Tribunal (ITAT)
💼 Action for Investors
Investors should monitor the outcome of the ITAT appeal as a final unfavorable ruling would impact the company's cash flows. However, since the company is contesting the demand, there is no immediate cash outflow beyond potential mandatory deposits for the appeal.