H.M. Electro Mech reports revenue growth, re-appoints auditor
H.M. Electro Mech Limited reported a rise in revenue to ₹13,221.01 lakh and PAT to ₹974.93 lakh for FY26. The board re-appointed M/S J K Hingu & Co. as Internal Auditor for the financial year 2026-27.
*this image is generated using AI for illustrative purposes only.
H.M. Electro Mech Limited reported its audited financial results for the year ended March 31, 2026, on May 29, 2026. The company recorded a revenue from operations of ₹13,221.01 lakh for FY26, compared to ₹12,166.69 lakh in the previous year. Profit after tax (PAT) for the year stood at ₹974.93 lakh, while basic earnings per share (EPS) were ₹7.12. The board also approved the re-appointment of M/S J K Hingu & Co. as the Internal Auditor for the financial year 2026-27.
Financial Performance
The total revenue for FY26 increased to ₹13,299.16 lakh from ₹12,205.25 lakh in FY25. Total expenses rose to ₹11,962.55 lakh from ₹11,063.92 lakh in the same period. The company’s finance costs decreased to ₹163.69 lakh from ₹177.38 lakh in the prior year. The statutory auditor issued an unmodified opinion on the financial results, though an emphasis of matter was noted regarding the valuation of inventories amounting to ₹2,452.59 lakh due to the absence of detailed project-wise records.
Balance Sheet Highlights
The company's total assets grew to ₹13,713.92 lakh as of March 31, 2026, up from ₹9,735.67 lakh in the previous year. Shareholders' funds increased to ₹7,520.96 lakh from ₹6,546.03 lakh. Cash and cash equivalents improved significantly to ₹756.88 lakh from ₹243.83 lakh. Trade receivables rose to ₹6,530.03 lakh from ₹4,032.82 lakh.
| Metric | FY26 (₹ in Lakhs) | FY25 (₹ in Lakhs) |
|---|---|---|
| Revenue from Operations | 13,221.01 | 12,166.69 |
| Profit After Tax | 974.93 | 835.07 |
| Total Assets | 13,713.92 | 9,735.67 |
| Shareholders' Funds | 7,520.96 | 6,546.03 |
IPO Fund Utilisation
During FY25, the company completed its Initial Public Offering (IPO), raising ₹2,774.40 lakh. As of March 31, 2026, the company utilised ₹2,752.72 lakh of the proceeds. The funds were primarily used to meet working capital requirements (₹2,078.32 lakh), general corporate purposes (₹401.94 lakh), and issue-related expenses (₹272.46 lakh). A balance of ₹21.68 lakh remains.
Board Appointments
The board of H.M. Electro Mech Limited re-appointed M/S J K Hingu & Co., Chartered Accountant, as the Internal Auditor for the financial year 2026-27. The appointment was made in compliance with Section 138 of the Companies Act, 2013, and Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The firm brings 4.5 years of experience in direct and indirect tax laws, statutory audit, and project financing.
Historical Stock Returns for H.M. Electro Mech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.70% | +9.90% | +32.09% | -3.17% | -18.01% | -28.67% |
How does the company plan to address the auditor's emphasis of matter regarding the lack of detailed project-wise inventory records?
With IPO funds nearly depleted, what strategy will the company use to finance future growth given the significant rise in trade receivables?
Will the reduction in finance costs continue into the next fiscal year, and what impact will this have on net profit margins?
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