📉 The Financial Deep Dive
The Numbers:
Incredible Industries Limited announced its un-audited financial results for the third quarter and nine months ended December 31, 2025 (Q3 FY26 and 9M FY26).
For Q3 FY26, the company reported a revenue of ₹18.90 Cr, marking a robust 16.7% year-on-year (YoY) increase from ₹16.19 Cr in Q3 FY25. Profit After Tax (PAT) for the quarter surged by 29.3% YoY to ₹1.79 Cr (from ₹1.39 Cr in Q3 FY25). This translated into an improved PAT margin of 9.47% in Q3 FY26, up from 8.58% in the prior year's comparable quarter. Basic Earnings Per Share (EPS) rose to ₹0.39 from ₹0.30 YoY.
However, the performance for the nine months ended December 31, 2025 (9M FY26) presented a starkly different picture. Revenue grew by 6.7% YoY to ₹56.14 Cr (from ₹52.59 Cr in 9M FY25). Despite this revenue growth, PAT witnessed a significant decline of 44.3% YoY, falling to ₹6.96 Cr from ₹12.49 Cr in 9M FY25. Consequently, the PAT margin contracted sharply from 23.75% in 9M FY25 to 12.40% in 9M FY26. Basic EPS for the nine-month period dropped to ₹1.50 from ₹2.70 YoY.
The Quality & The Grill:
The most striking anomaly in the Q3 FY26 results is the substantial tax expense of ₹94.58 Cr. This figure is extraordinarily high when compared to the Profit Before Tax (PBT) of ₹3.15 Cr for the same quarter. This enormous tax charge effectively wiped out the PBT, leading to a PAT of only ₹1.79 Cr. While the company stated there were no exceptional or extraordinary items, the sheer scale of the tax expense relative to PBT raises significant questions about its nature and impact on the reported net profit. The company operates in a single segment, 'Iron & Steel Products', and has no subsidiaries, associates, or joint ventures.
The Omissions:
Crucially, the disclosed results do not include a Balance Sheet or Cash Flow statement, limiting a comprehensive financial assessment. Furthermore, no forward-looking guidance or management outlook was provided, leaving investors in the dark regarding the company's strategic plans and expected performance drivers.
Auditor's Report:
Independent auditors R Gopal & Associates conducted a limited review. Their report states that based on their review, nothing has come to their attention that causes them to believe the accompanying statement is materially misstated. However, their review is substantially less in scope than an audit and does not enable them to obtain assurance that all significant matters would be identified.
🚩 Risks & Outlook
The primary risk for Incredible Industries is the unexplained and exorbitant tax expense in Q3 FY26. Investors must seek clarity on this matter, as it severely distorts the reported net profit and raises concerns about the true profitability and financial health of the company. The significant contraction in nine-month PAT and margins, despite revenue growth, also points to potential underlying cost pressures or operational inefficiencies. The absence of balance sheet and cash flow data, coupled with a lack of management guidance, exacerbates the uncertainty for investors, making future stock performance highly unpredictable.