Fluidomat Ltd has cancelled an agreement to purchase a 2,000 sq. mt. semi-built-up tin shed from Gajra Bevel Gears Ltd due to exceptional and prolonged delays in obtaining regulatory approvals. The company determined that these delays rendered the project commercially unviable, leading to the mutual decision to discontinue the proposal. The cancellation was disclosed to the stock exchange on July 20, 2026.

The proposed transaction involved the purchase of a structure developed on 22,942 sq. mt. of industrial lease hold land situated at 7A, I.S. Gajra Industrial Area 1, A. B. Road, Dewas (M.P.). The agreement was originally executed on January 9, 2025. The company had previously paid an advance amount of ₹21,00,000 toward this agreement, which has since been refunded by the counterparty.

Fluidomat stated that this decision will have no material impact on its financial performance or ongoing business operations. The company noted that its ongoing expansion project, as previously communicated to the stock exchange, has already commenced on two acres of company-owned land.

The disclosure was made pursuant to Regulation 30 read with sub-clause 5 of Para B of Part A of Schedule III of the SEBI (LODR) Regulation, 2015 and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Details of the Agreement

Fluidomat Limited reported revenue of ₹72.46 crore for the financial year ended March 31, 2026, remaining stable on a year-on-year basis. Profit after tax (PAT) for the period stood at ₹20.1 crore, resulting in a PAT margin of 27.77%. The Board has recommended a final dividend of ₹7.50 per share for the year, subject to shareholder approval at the Annual General Meeting.

The company disclosed its financial performance in an investor presentation filed with the stock exchanges. EBITDA for FY26 was recorded at ₹25.67 crore, corresponding to an EBITDA margin of 35%. The document noted that the normalisation of margins from the elevated levels of FY25 was primarily due to a shift in product and customer mix alongside input cost pressures. Despite this, the company maintained a debt-free balance sheet with near-zero total borrowings.

Expansion and Capacity

In February 2026, the Board approved a modernisation and capacity expansion programme estimated to cost ₹35 crore. The project will be financed entirely through internal accruals and includes the civil construction of 86,988 sq. ft., modernisation of aluminium and cast iron foundries, and the installation of modern CNC machines. The company expects the initiative to augment annual production capacity from 1,500 units to 3,500 units over a period of 2–3 years. Additionally, the firm is eligible for a 40% capital subsidy on qualifying production machines and civil works.

Financial Metrics

The company’s return on capital employed (ROCE) and return on equity (ROE) for FY26 were reported at 30% and 23% respectively. Net worth grew from ₹80 crore to ₹96 crore over the year. Promoter holding remained stable at 53.5%. The market capitalisation as of June 25, 2026, was ₹411 crore.

Operational Overview

Fluidomat continues to serve critical sectors including power, steel, cement, mining, and oil & gas. The presentation highlighted that the company is one of only five countries globally with indigenous fluid coupling technology, boasting an installed base of over 60,000 couplings worldwide. Management attributed the stable revenue performance to its diversified product portfolio and growing customer base, despite the transitional phase in margins.