Whalesbook
📉 The Financial Deep Dive
Linde India Limited posted a strong performance in its third quarter (Q3 FY25) ended December 31, 2025, on a standalone basis. Revenue from operations climbed 15.7% year-on-year (YoY) to ₹7,010.34 million. The company's Profit After Tax (PAT) witnessed a substantial surge of 68.1% YoY, reaching ₹1,915.90 million. This robust growth translated into Earnings Per Share (EPS) of ₹22.46, up from ₹13.37 in the comparable prior-year period.
For the nine-month period (9M FY25) ended December 31, 2025, standalone PAT grew by 41.1% YoY to ₹4,656.78 million, with EPS rising to ₹54.60 from ₹38.68. A significant factor contributing to the nine-month results was a ₹900 million reversal of related liabilities, which effectively reduced expenses.
On a consolidated basis, Q3 FY25 revenue also rose 15.7% YoY to ₹7,010.34 million. However, consolidated PAT saw a more modest increase of 13.0% YoY to ₹1,933.25 million, with consolidated EPS growing to ₹22.67. For the nine months, consolidated PAT grew by 4.3% YoY to ₹4,715.19 million. The divergence between standalone and consolidated PAT growth in Q3 FY25 is largely attributable to the exceptional item on the standalone books.
🚩 Risks & Outlook
The most significant overhang for Linde India remains the ongoing regulatory and legal proceedings. The company is under investigation by the Securities and Exchange Board of India (SEBI) concerning related party transactions (RPTs) and a business allocation arrangement with Praxair India Private Limited (PIPL). Linde India has challenged SEBI's orders on the materiality threshold for RPTs and business allocation. After its appeals were dismissed by the Securities Appellate Tribunal (SAT), the company has filed an appeal before the Hon'ble Supreme Court, which has admitted the appeal but has not granted a stay.
The auditor's limited review report explicitly highlights significant uncertainties and notes that the probable consequences and related implications of these ongoing proceedings on the financial results are presently not ascertainable. This lack of clarity poses a substantial risk to future financial outcomes.
The company has not provided any forward-looking guidance or outlook in its announcement, leaving the street to speculate on future performance amidst these uncertainties.
🔄 Comparative Lens & Big Picture
The 'Gases, related products & services' segment remains the core business, contributing the majority of standalone revenue. While the standalone operational performance is strong, the consolidated figures show less impressive growth, indicating potential pressures or differing dynamics within subsidiaries.
The SEBI investigation, which began due to investor complaints alleging detrimental business allocation and failure to obtain shareholder approval for material RPTs, has now reached the Supreme Court. The core of the dispute revolves around the interpretation of materiality thresholds for RPTs and the business allocation agreement post-merger of Linde AG and Praxair Inc. The Supreme Court's decision, or the lack of a definitive resolution, will be critical for Linde India's long-term direction and investor confidence. The auditor's note underscores the gravity of this situation, making future financial projections highly speculative.
Appointment of Interim CFO: The company also announced the appointment of Mr. Ajay Kumar Sah as Interim Chief Financial Officer (CFO) effective February 16, 2026, succeeding Mr. Neeraj Kumar Jumrani. Mr. Sah brings over 25 years of experience within the Linde Group. [cite: N/A - information from input text]
Analyst EPS Comparison: No analyst EPS estimates were available for comparison with the reported figures. [cite: N/A - search results did not provide Linde India specific estimates]