mangal electrical industries reported a profit after tax (PAT) of ₹43.17 crore for the financial year ended March 31, 2026, alongside a 5.51% increase in revenue from operations to ₹579.68 crore. The company’s EBITDA stood at ₹68.3 crore, reflecting an EBITDA margin of 11.8%. These results mark the firm’s first full year as a publicly listed entity following its initial public offering (IPO) in August 2025, which raised ₹40,000 lakh and strengthened its balance sheet by reducing total debt from ₹149.12 crore to ₹45.43 crore.

The Board of Directors did not recommend any dividend for FY26, opting instead to retain profits to fund ongoing capacity expansion and working capital requirements. The company’s net worth increased significantly to ₹590.37 crore as of March 31, 2026, driven by healthy internal accruals and the successful capital raise. Statutory auditors M/s. A Bafna & Co. issued an unqualified opinion on the standalone financial statements, confirming compliance with Indian Accounting Standards (Ind AS).

Financial Performance

Revenue growth was primarily driven by higher volumes in the transformer components business and steady momentum in transformer manufacturing. However, margins faced pressure due to a sharp correction in Cold Rolled Grain Oriented (CRGO) steel prices, which impacted industry realizations across the sector. Despite these headwinds, the company maintained disciplined cost management while continuing investments in capacity expansion.

Strategic Developments

During FY26, Mangal Electrical expanded its CRGO processing capacity to 28,000 metric tons and secured Power Grid Corporation of India Limited (PGCIL) approval for CRGO processing up to the 765 kV class. The company is also constructing a greenfield transformer manufacturing facility designed to produce transformers up to the 220 kV/100 MVA class, aiming to address higher-value opportunities in the power sector. Additionally, the company introduced Vacuum Circuit Breakers (VCBs) to broaden its product portfolio.

What the Numbers Show

The most significant structural change in the company’s financial profile is the deleveraging achieved through the IPO. With total debt dropping to ₹45.43 crore against a net worth of ₹590.37 crore, the debt-equity ratio improved dramatically from 0.92x to 0.08x. This strengthened balance sheet provides the company with greater financial flexibility to pursue its long-term strategy of backward integration and capacity expansion without relying heavily on external borrowings. The retention of earnings further supports this growth trajectory, ensuring that capital is deployed directly into manufacturing capabilities and working capital rather than distributed as dividends.

Mangal Electrical Industries reported a net profit of ₹7.52 crore for the quarter ended June 30, 2026, marking a 101.5% year-on-year increase from ₹3.73 crore in Q1FY26. The surge was driven by a 40.3% rise in revenue from operations to ₹125.83 crore, supported by healthy volume growth in its core CRGO lamination business and improved contribution from transformers. EBITDA margin contracted to 8.85% from 11.12% due to lower CRGO realizations, though operational efficiencies and a change in depreciation accounting policy significantly boosted the bottom line.

The Board of Directors, chaired by Chairman & Managing Director Rahul Mangal, approved the unaudited standalone financial results on July 29, 2026, pursuant to Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors A Bafna & Co. In addition to financial approvals, the Board appointed Ms. Neha Rathi as an Additional Director (Independent Category) effective July 29, 2026, subject to shareholder approval at the upcoming Annual General Meeting.

Financial Performance

Revenue from operations grew to ₹12,582.73 lakh in Q1FY27, compared to ₹8,966.00 lakh in the corresponding period of FY26. EBITDA rose to ₹111M rupees from ₹97M rupees in the year-ago period, while Profit After Tax (PAT) more than doubled. Earnings per share (EPS) increased to ₹2.72 from ₹1.82 in the previous year's quarter. Finance costs remained stable at ₹185.60 lakh.

The profit before tax increased by 99.1% to ₹1,009.79 lakh. Tax expense for the quarter was ₹257.57 lakh, comprising current tax of ₹164.79 lakh and deferred tax of ₹92.78 lakh.

Operational Drivers & Segment Analysis

The company achieved approximately 32% volume growth in CRGO during Q1FY27 compared to Q1FY26. However, CRGO realizations declined by approximately 18% year-on-year, impacting overall margins. Sequentially, CRGO prices increased by 5% compared to Q4FY26, with management noting early signs of price recovery after a year-long downtrend.

The Manufacturing & Trading segment, which includes electrical transformers and CRGO, contributed ₹11,400.74 lakh to revenue, up from ₹8,650.22 lakh in Q1FY26. This segment generated a result of ₹1,025.66 lakh before finance costs, depreciation, and other income. The EPC Contract segment saw revenue grow significantly to ₹1,181.99 lakh from ₹315.77 lakh, with segment results reaching ₹87.36 lakh compared to ₹7.49 lakh previously.

What the Numbers Show

A key driver of the improved bottom line was a change in depreciation method from Written Down Value (WDV) to Straight-Line Method (SLM) effective April 1, 2026. This accounting estimate change reduced depreciation expense by ₹1.30 crore, directly boosting profit before tax by the same amount. While operational revenue growth remains strong, nearly 17% of the reported pre-tax profit improvement stems from this non-cash accounting adjustment rather than pure operational leverage. Additionally, the expansion in transformer revenue — up 187% YoY — highlights the success of the company's capacity expansion strategy, even as component margins face pressure.

Corporate Governance & Outlook

The Board reappointed M/s SCLJ & Associates as Internal Auditors for FY27 and appointed M/s SKMG & Co. as Secretarial Auditors, subject to shareholder approval. Ms. Neha Rathi, an Associate Company Secretary with over 10 years of experience, joins the board as an Additional Independent Director. Her appointment is pending ratification via a special resolution at the 18th Annual General Meeting scheduled for August 26, 2026. The record date for the AGM is fixed as August 17, 2026.

Commenting on the performance, Mr. Rahul Mangal stated, "We have started FY27 on a positive note with strong operational performance, driven by healthy volume growth and improved contribution from our transformer business." He added that the transformer capacity expansion is progressing as planned and expected to be completed by the end of FY27. The company has also acquired industrial land adjacent to its existing manufacturing facility in Reengus, Rajasthan, to support future capacity expansion.

As of June 30, 2026, the company has utilized ₹31,509.37 lakh of its IPO proceeds, with ₹8,490.63 lakh remaining unutilised and held in bank accounts.