Majestic Auto Limited (BSE: 500267) has announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, along with declaration of a Special Interim Dividend of ₹35 per equity share.

The Board of Directors approved the results and dividend at its meeting held on February 11, 2026. The meeting commenced at 1:05 PM and concluded at 1:59 PM.

The strong financial performance during the quarter is largely attributed to the sale of its entire investment in subsidiary Emirates Technologies Private Limited (ETPL).

Standalone Financial Performance – Q3 FY26

Revenue and Income

For the quarter ended December 31, 2025, the company reported:

• Revenue from operations: ₹339.78 lakh

• Other income: ₹1,035.72 lakh

• Total income: ₹1,375.50 lakh

For the nine months ended December 31, 2025, total income stood at:

• ₹5,478.75 lakh

The significant rise in other income reflects gains from the divestment of subsidiary investment.

Expenses

For Q3 FY26, total expenses stood at:

• ₹707.50 lakh

Key components included:

• Cost of operations

• Employee benefit expenses

• Finance costs

• Depreciation

• Other expenses

Despite operational costs, the company reported strong profitability due to exceptional gains.

Exceptional Item – ETPL Divestment

A major highlight of the quarter is the sale of 1.60 crore equity shares of Emirates Technologies Private Limited (ETPL).

• Sale price: ₹122.50 per share

• Total consideration: ₹196 crore

• Date of sale: September 4, 2025

This transaction resulted in an exceptional gain of ₹12,280 lakh, which significantly boosted profit before tax.

Following this transaction, ETPL ceased to be a subsidiary of Majestic Auto.

Profit and EPS – Standalone

Profit Before Tax (including exceptional gain)

• ₹15,038.97 lakh (nine months)

Profit After Tax (Q3 FY26)

• ₹499.02 lakh (quarter)

• ₹11,718.49 lakh (nine months)

Earnings Per Share (EPS)

• Basic EPS (Q3): ₹4.80

• Nine-month EPS: ₹112.71

The jump in EPS reflects the impact of the one-time exceptional income.

Consolidated Financial Performance

On a consolidated basis, including subsidiaries:

Q3 FY26 Highlights

• Total Income: ₹1,415.05 lakh

• Profit After Tax: ₹544.87 lakh

• Nine-Month Profit: ₹9,541.32 lakh

Consolidated EPS

• Basic EPS (Q3): ₹5.24

• Nine-month EPS: ₹91.76

The consolidated numbers also reflect the strong gain from subsidiary divestment.

₹35 Special Interim Dividend Declared

The Board has declared a Special Interim Dividend of 350%, which translates to:

• ₹35 per equity share

• Face value: ₹10 per share

Record Date

• February 17, 2026 (Tuesday)

Shareholders whose names appear in the Register of Members or Depositories records as of this date will be eligible.

Dividend Payment Date

• Dividend will be paid/dispatched on or before March 13, 2026, subject to applicable taxes.

The dividend has been declared in view of the profits realised from sale of subsidiary investment.

This move indicates management’s intent to reward shareholders through distribution of extraordinary gains.

Real Estate Transaction Update

Majestic Auto had earlier entered into an agreement to sell:

• Property located at Ecotech I Extension, Greater Noida

• Total sale consideration: ₹128.50 crore

• Advance received till December 31, 2025: ₹115.25 crore

• Advance received during Q3: ₹5.51 crore

This transaction remains an important future cash flow driver.

Impact of New Labour Codes

The Government notified four Labour Codes in November 2025:

• Code on Wages

• Industrial Relations Code

• Code on Social Security

• Occupational Safety Code

Estimated Impact

• Standalone incremental impact: ₹22.43 lakh

• Consolidated impact: ₹37.76 lakh

The company continues to monitor further regulatory clarifications.

Auditor’s Review Report

The statutory auditor, M/s Hari S. & Associates, has issued a Limited Review Report without any qualification for both standalone and consolidated financial results.

Key observations:

• Results prepared under Ind AS 34 – Interim Financial Reporting

• Compliant with Regulation 33 of SEBI (LODR) Regulations, 2015

• No material misstatement observed

An unqualified limited review provides confidence in financial transparency.

Re-Appointment of Internal Auditor

The Board approved re-appointment of:

M/s S. Tandon & Associates (FRN 006388N)

• Appointed as Internal Auditor for FY 2026-27

• Annual remuneration: ₹80,000 plus travelling expenses and taxes

The firm has been established since 1986 with presence across Chandigarh, Mohali, Delhi, Ludhiana and Jammu.

Business Segment Overview

As per Ind AS 108 – Operating Segments, the company operates in:

• Real Estate and Management Services

There are no multiple operating segments requiring separate disclosure.

Key Takeaways for Investors

1. Strong one-time profit surge driven by ETPL stake sale.

2. Declaration of ₹35 special interim dividend signals shareholder-friendly approach.

3. Solid balance sheet with Other Equity exceeding ₹69,000 lakh (standalone).

4. Real estate transaction may further strengthen liquidity.

5. Auditor’s clean review opinion enhances governance credibility.

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