Aartech Solonics Limited achieved a record turnover of ₹40 crore for the financial year ended March 31, 2026, driven by steady organic growth and strategic expansion into new geographies. The company reported that it is effectively debt-free on its books, maintaining only cash credit facilities for working capital, while cash and cash equivalents increased to ₹328 lakh from ₹168 lakh in the previous year. This financial performance was disclosed during the company's first-ever virtual earnings conference call held on May 28, 2026, to discuss the results for the fourth quarter and fiscal year 2026.

Financial Performance and Strategic Outlook

The company’s revenue has doubled over the past five years, growing at an organic rate of 12% to 15% annually. Management attributed the improved profitability in FY26 to disciplined expense management and the absence of exceptional expenses, which had amounted to ₹4 crore in the previous year. Consequently, EBITDA and Profit After Tax (PAT) saw significant improvements, with EBITDA appearing approximately three times higher than the prior year.

Aartech Solonics continues to focus on innovation-led entrepreneurship, with a DSIR-approved R&D center and two patents currently in the application stage. The company is executing long-gestation projects typically spanning 120 to 180 days, which influences its working capital cycles.

Business Segments and Market Expansion

The company operates across multiple verticals, including defence, oil and gas, power generation, and heavy engineering. Key products include the BTS 2000 Bus Transfer System, Fault Current Limiter, and Alternative Adaptive Power Module (AAPM). Management identified the defence sector as a high-growth area with strong margin potential, despite long gestation periods for trials and validation.

In the international market, Aartech secured significant orders against competitors like ABB in Indonesia and expanded its footprint in the Middle East, specifically in Qatar and Oman. The company also began exporting Control and Relay Panels to China and Africa. For the current financial year, exports are expected to contribute around 10% to total revenue, with the flagship BTS 2000 product commanding average margins of 35% to 40%.

Future Projects and Order Book

Aartech is advancing its manufacturing capabilities with a new facility in the Renewables and Power Equipment Cluster near Narmadapuram, Madhya Pradesh. The civil infrastructure work is underway, and commercial operations are targeted by the end of FY27 or early FY28. This facility aligns with the "Make in India" initiative and will focus on next-generation energy storage systems.

Regarding the order book, the company started the financial year with ₹10 crore in hand and has bid for projects worth approximately ₹15 crore. Management expects the order book to reach around ₹25 crore by the end of June.

The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 26, 2026.

Aartech Solonics Limited reported a 71.1% year-on-year increase in net profit to ₹349.71 crore for the financial year ended March 31, 2026, driven by higher income from operations. Revenue from operations rose 12.5% to ₹4,017.82 crore in FY26 from ₹3,569.73 crore in the previous year. The Board of Directors approved the audited IndAS standalone and consolidated financial results for the quarter and year ended March 31, 2026, at its meeting held on May 26, 2026. The company submitted its investor presentation for Q4 and FY26 to the exchanges on May 28, 2026, in compliance with Regulation 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

For the quarter ended March 31, 2026, the company posted a net profit of ₹72.97 crore, compared to a loss of ₹249.97 crore in the same period last year. Income from operations for the quarter stood at ₹1,746.10 crore. The statutory auditor, B A N C R S & Co. LLP, issued an unmodified opinion on the annual standalone financial results, though it drew attention to an ongoing dispute regarding the company's investment in associate Enerqual Technology Private Limited, which prevented impairment testing.

Financial Performance Summary

The company noted that gross margins and net profit margins showed continued increasing trends due to a change in product mix, including the manufacturing of panels with advanced ratings up to 220 kV. Additionally, the company recognised a loss of ₹1.21 crore arising from a fire accident at its Mandideep factory in October 2025, against which an insurance claim of ₹1.85 crore was received.

Strategic Developments

The investor presentation highlighted major breakthroughs and strategic order wins for 2025-26. The company successfully executed an international Bus Transfer System project in Indonesia and secured strategic orders from Qatar and Oman utilities. It achieved its first-ever export of Control & Relay Panels to Africa. Domestically, Aartech Solonics secured key orders from IOCL, PSPCL, CSPTCL, HPSEBL and MPPTCL, entering the advanced 132kV SAS & High Voltage Automation segment. In defence, the company delivered rugged solutions to the Indian Air Force and Indian Navy and is advancing the Electro-Magnetic Launch System (EMLS).

Board Decisions and Disclosures

The Board approved the appointment of M/s Simran Khanuja & Co., Practicing Chartered Accountants, as the internal auditors for the financial year 2026-27. The firm, based in Bhopal, was appointed based on the recommendation of the Audit Committee. The company confirmed that the financial results were prepared in accordance with the Indian Accounting Standards (Ind AS) and complied with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In accordance with Regulation 47(3) of the SEBI regulations, the company submitted newspaper clippings of the published financial results to the National Stock Exchange of India Limited and BSE Limited on May 28, 2026.

Pursuant to Regulation 30 read with Part A of Schedule III and Regulation 46(2)(oa) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company informed the exchanges that the audio recording of the Investor/Analyst Meet held on May 28, 2026, has been made available on its website.