Lakshmi Electrical Control Systems Limited reported a 65.8% decline in net profit to ₹118.70 lakh for the financial year ended March 31, 2026, despite revenue from operations rising 11.9% to ₹2,375.81 crore. The company’s profit after tax decreased by ₹228.53 lakh compared to the previous financial year, primarily due to higher expenses and exceptional items.

The board of directors has recommended a dividend of 30%, or ₹3 per equity share of ₹10 face value, for the financial year ended March 31, 2026. The dividend is subject to shareholder approval at the annual general meeting scheduled for July 31, 2026. The record date for determining dividend eligibility is July 24, 2026.

Financial Performance

Revenue from operations increased to ₹2,375.81 crore in FY26 from ₹2,123.12 crore in the previous year. However, the profit before interest and depreciation fell to ₹599.08 lakh from ₹1,037.25 lakh in FY25. The company reported an exceptional item of ₹1.74 lakh related to an incremental contribution to the group gratuity.

The Electricals segment achieved a turnover of ₹2,031.64 crore, while the Plastics segment recorded ₹358.96 crore. Revenue from wind power generation stood at ₹8.16 crore.

Auditor Appointment and Ratifications

The board recommended the appointment of M/s. NRD Associates, Chartered Accountants, as the statutory auditors for a term of five years from FY27 to FY31, replacing M/s. Subbachar & Srinivasan, who have completed their two-term limit. The proposed fees for the new auditors for FY27 is ₹3.50 lakh.

Shareholders will also vote on the ratification of the remuneration for the cost auditor, Sri S. Subbaraman, fixed at ₹40,000 for FY27.

Related Party Transactions

The company sought shareholder approval for material related party transactions with LMW Limited and Lakshmi Precision Technologies Limited. The proposed transaction limit with LMW Limited is ₹450 crore, while the limit with Lakshmi Precision Technologies Limited is ₹100 crore for the period until the next annual general meeting.

The annual general meeting is scheduled to be held on July 31, 2026, at Nani Kalai Arangam in Coimbatore.

Lakshmi Electrical Control Systems Limited has received show cause notices from the Office of the Assistant Commissioner (GST) demanding a total of ₹5.49 crore across two financial years. The notices, received on May 7, 2026, allege short payment of tax under Reverse Charge Mechanism (RCM), issues related to Input Tax Credit (ITC) reversals, and insufficient documentary proof for exempted or nil-rated supplies.

The first notice pertains to Financial Year 2022-2023 and demands ₹1,56,88,534. This amount includes a tax component of ₹1,41,40,145, cess of ₹2,922, interest of ₹1,11,452, and a penalty of ₹14,34,015. The second notice covers Financial Year 2023-2024 and involves a significantly higher demand of ₹3,92,93,425, comprising tax of ₹3,57,21,295 and a penalty of ₹35,72,130.

Breakdown of Demands

The following table details the financial implications of the notices received by the company:

Company Response and Non-Compliances

The regulatory authorities identified specific aberrations, including short payment of tax under RCM, proof requirements for exempted, nil-rated, or non-GST supplies, and details of turnover reported in GSTR forms. Additionally, the notices cite ITC reversals and the need for documentary proof regarding credit notes and ITC claimed.

Lakshmi Electrical Control Systems Limited stated that it is currently in the process of filing the necessary replies and explanations to substantiate its case against these demands. The company clarified that there is no material impact on its financials, operations, or other activities as a result of these communications. The intimation to the exchanges was filed on June 2, 2026, after the notices were retrieved from the spam folder of the official email account.