Chandni Machines Q3 Results Show Major Financial Reporting Errors

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AuthorAkshat Lakshkar|Published at:
Chandni Machines Q3 Results Show Major Financial Reporting Errors
Overview

Chandni Machines' Q3 FY26 results present a stark financial anomaly. While reporting significant YoY revenue growth (+86.21%), the standalone unaudited financials contain critical inconsistencies, failing to reconcile Total Income, Revenue from Operations, Other Income, and Profit Before Tax. This raises severe concerns about reporting accuracy and governance.

Chandni Machines: Q3 FY26 Results Marred by Critical Financial Reporting Anomalies

Chandni Machines Limited has announced its standalone unaudited financial results for the quarter and nine months ended December 31, 2025. While the company reported a robust year-over-year (YoY) increase in Revenue from Operations by 86.21% to ₹4,822.86 lakhs, the disclosed financial statements exhibit critical inconsistencies that raise significant red flags for investors.

📉 The Financial Deep Dive

  • Revenue from Operations surged by 86.21% YoY to ₹4,822.86 lakhs for Q3 FY26. This topline growth was complemented by a substantial swing in Other Income, which rose by 212.39% QoQ to ₹240.86 lakhs.
  • However, the reported Total Income stands at ₹4,820.85 lakhs, showing a YoY increase of 64.46%. This figure is inconsistent with the sum of 'Revenue from Operations' (₹4,822.86 lakhs) and 'Other Income' (₹240.86 lakhs), which totals ₹5,063.72 lakhs.
  • Total Expenses saw a YoY decrease of 14.59% to ₹58.30 lakhs.
  • Despite reported expenses, the Profit Before Tax (PBT) is stated as ₹182.57 lakhs, a dramatic QoQ increase of 1762.21%. This PBT figure is not derivable from the reported 'Total Income' and 'Total Expenses'. If calculated as 'Total Income' minus 'Total Expenses' (₹4,820.85 lakhs - ₹58.30 lakhs), the PBT should theoretically be ₹4,762.55 lakhs, a stark contrast to the declared ₹182.57 lakhs.
  • Consequently, the Profit After Tax (PAT) stands at ₹185.07 lakhs, with a massive QoQ jump of 4999.17%.
  • Earnings Per Share (EPS) reported is ₹5.73, a substantial QoQ increase of 5109.09%.

⚠️ Investor Risks & Governance

The most critical issue is the apparent misstatement or calculation error in the financial results. The discrepancy between reported revenue components and total income, and more importantly, the unexplainable PBT figure, suggests a severe lapse in financial reporting and internal controls. Such anomalies can severely erode investor confidence, lead to potential regulatory scrutiny, and impact the stock's valuation and liquidity. Investors are strongly advised to exercise extreme caution until these discrepancies are clarified and rectified by the company.

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