Aplab Limited reported a significant turnaround in profitability for fiscal year 2026, with net profit after tax rising to ₹2.52 crore from ₹0.26 crore in the previous year. This represents an approximate 870% increase, driven by structural cost reductions and margin expansion despite a contraction in top-line revenue.

The electronics engineering firm delivered its 61st Annual General Meeting management address on August 28, 2026. The disclosure highlights operational efficiencies that allowed the company to improve its bottom line while navigating a challenging revenue environment.

Financial Performance

Revenue from operations declined to ₹58.44 crore in FY26, down from ₹63.67 crore in FY25. However, the company achieved substantial margin improvements through disciplined execution and working capital efficiency.

Operating profit margin expanded to 10.07% from a negative 5.29% in the prior year. Net profit margin similarly improved to 4.31% from 0.41%. The Board did not recommend a dividend for the year, directing resources toward strengthening the business.

What the Numbers Show

The divergence between revenue decline and profit surge indicates a shift toward higher-margin activities and strict cost control. With revenue falling 8% while net profit increased nearly ninefold, the improvement was not volume-driven but rather derived from operational leverage. Additionally, debtor days improved sharply from 124 to 53, suggesting enhanced cash collection efficiency that likely contributed to lower finance costs and better liquidity.

Business Segment Updates

Power Control and Conversion Electronics (PCCE) remained the largest revenue contributor, accounting for nearly three-quarters of total income. Revenue from defence and aviation sectors moderated by approximately 2-3% due to project timing and deployment schedules.

Test and Measurement Instrumentation (TMI) saw revenue increase by approximately 30%, albeit from a low base. The Banking and Business Automation segment recorded a 50% revenue increase compared to the previous fiscal year, though management noted this segment remains volatile and dependent on public sector tender wins.

Service revenue stood at ₹6.58 crore in FY26. The year-on-year decline was attributed to the end of operational life for older banking kiosks in the serviceable installed base. Management aims to rebuild this base over time but clarified that achieving a 50% service-revenue mix is a long-term aspirational goal rather than a near-term target.

Balance Sheet and Outlook

The debt-equity ratio reduced significantly to 0.93 from 2.38 in the previous year. Interest coverage improved to 2.37 times from negative 1.05 times, reflecting lower financial leverage and improved earnings before interest and taxes.

Looking ahead, Aplab identified opportunities in critical power, defence, aviation, and banking automation. However, management stated it would not provide specific revenue or order-book guidance for FY27, citing dependence on customer procurement cycles and competitive intensity.

Aplab Limited confirmed the complete utilization of proceeds from its rights issue for the quarter ended June 30, 2026. The company utilized the entire ₹6.29 crore received during Q2FY26 towards its stated objectives, including working capital funding and loan repayment, with no balance remaining as of the quarter-end.

The rights issue, which closed on July 3, 2025, involved the issuance of 1,25,70,000 equity shares at a price of ₹5 per share (including a premium of ₹2.50). Although the total proposed issue size was ₹23.88 crore, the company called only ₹5 per share in Q2FY26, resulting in the receipt of ₹6.29 crore. The remaining portion of ₹14 per share (aggregating to ₹17.59 crore) remains uncalled and is yet to be invoked.

Utilization Breakdown

Infometrics Valuation and Rating Limited, acting as the monitoring agency, verified that the funds were deployed strictly in accordance with the Letter of Offer dated May 27, 2025. The statutory auditors, M/s. R. Bhargava & Associates, issued a certificate dated August 5, 2026, confirming no deviations from the expenditure plan.

Note: The total utilized amount of ₹6.04 crore aligns with the net proceeds after estimated issue-related expenses of ₹0.50 crore from the gross receipt of ₹6.29 crore.

What the Numbers Show

The deployment pattern reveals a strategic focus on debt reduction and immediate liquidity needs. The company fully repaid a ₹2.75 crore loan from M/s Laxmimanak Finance Pvt. Ltd., eliminating this specific liability. Concurrently, ₹3.03 crore was directed towards working capital, supporting the company’s objective to reduce trade payable days from 101 (as of December 31, 2024) to 76 in FY26, and trade receivable days from 142 to 95. This allocation suggests an intent to optimize the cash conversion cycle through improved supplier terms and stricter credit controls.

Regulatory Compliance

The company reported no material deviations from the objects of the issue. As per SEBI ICDR Regulations, 2018, unutilized proceeds may be carried forward to subsequent fiscals if not deployed within the proposed timeline due to factors beyond control. Since only a portion of the issue price was called, the non-utilization of the entire proposed ₹23.38 crore net proceeds by FY26 is not considered a deviation. The company plans to utilize the balance proceeds in subsequent periods upon making further calls, subject to regulatory approvals.