Constronics Infra Limited subsidiary Constronics Energy Solution Private Limited has executed a strategic Captive Power Purchase Agreement for 7.85 MWp solar energy off-take. The deal, spanning 25 years, guarantees an initial annual revenue stream of ₹5.20 crore and is expected to boost the subsidiary's net profit by 450% compared to the previous year.

The agreement involves ELGI Equipments Limited and Tablets (India) Limited as designated Captive Users. To comply with the Electricity Act, 2003, these entities acquired a combined 31.15% equity stake in the subsidiary, ending its wholly owned status while ensuring long-term capacity utilization and stable growth visibility.

Transaction Details and Equity Structure

The company disclosed the transaction pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The shares were transferred at a face value of ₹10 each, aggregating to a total consideration of ₹2.80 crore. The buyers are not part of the promoter group, and the transaction does not qualify as a related party transaction.

Following the transfer, Constronics Infra retains a 68.85% shareholding, meaning the entity remains a subsidiary but is no longer wholly owned. The agreement was entered into on September 24, 2026, with completion expected on the same date.

Financial Impact and Operational Shift

Constronics Energy Solution operates as a Captive Generating Plant under the Electricity Act, 2003. Previously, the subsidiary contributed Nil to turnover, revenue, income, or net worth during the last financial year. The execution of this power purchase agreement marks a significant operational shift, transforming the subsidiary from a non-contributing entity into a revenue-generating asset.

The new business is projected to increase net profit by 450% for the current year compared to last year's net profit. This development provides robust top-line visibility and positions the subsidiary for sustainable growth over the next quarter-century.

What the Numbers Show

The transition from zero revenue contribution to an assured ₹5.20 crore annual inflow represents a fundamental change in the subsidiary's economic profile. While the equity sale consideration was modest at ₹2.80 crore, the long-term revenue guarantee of ₹5.20 crore annually over 25 years significantly outweighs the initial capital outlay from the buyers' perspective. This structure aligns ownership with consumption, typical of captive power arrangements, ensuring that the parent company benefits from stable cash flows without bearing the full operational risk of merchant power sales.

Constronics Infra will hold its 34th Annual General Meeting on Wednesday, September 30, 2026, via Video Conferencing or Other Audio Visual Means (VC/OAVM). The meeting is scheduled to begin at 3:00 pm.

The company disclosed its financial results for the fiscal year ended March 31, 2026, alongside the AGM notice. Standalone revenue from operations stood at ₹4,861.42 lakh, down from ₹5,097.45 lakh in the previous year. Profit after tax was reported at ₹310.61 lakh, compared to ₹313.18 lakh in FY25.

Meeting Agenda and Voting

The primary agenda includes the adoption of audited financial statements and the re-appointment of Ms. Sharmila Thirumalaisamy as a director. She retires by rotation and, being eligible, has offered herself for re-appointment.

Remote e-voting will be open from September 27, 2026, at 9:00 am until September 29, 2026, at 5:00 pm. The cut-off date for e-voting eligibility is September 23, 2026. Shareholders can participate in the meeting through VC/OAVM facilities provided by NSDL.

Financial Highlights

The company’s consolidated revenue from operations was ₹4,861.42 lakh. Consolidated profit after tax was ₹282.02 lakh, a decline from ₹313.18 lakh in the prior year.

Operational Updates

During the year, Constronics Infra engaged in trading construction and building materials such as blue metals, M-sand, and crushed stone. The company acquired its wholly-owned subsidiary, Constronics Energy Solutions Private Limited, on May 3, 2025.

No dividend was recommended for the financial year 2025-26. The board also noted that 30,09,899 warrants allotted in November 2024 lapsed unexercised in May 2026, resulting in the forfeiture of the upfront consideration received.

Corporate Governance

The board of directors convened nine times during the fiscal year. Key managerial personnel include Rajamani Ragavachari Sundara Raghavan as Managing Director, Sivanandham Vijayakanth as Chief Financial Officer, and Rishab Kothari as Company Secretary.

Auditors B. Thiagarajan & Co. issued a qualified opinion on the financial statements due to an amount of ₹5.87 lakh seized by an investigating agency, which was not provided against in the accounts.