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, alongside a significant reduction in depreciation expenses following a change in accounting policy. This strong start to FY27 underscores the company’s post-IPO momentum, with substantial cash reserves remaining from its initial public offering proceeds.

The Board of Directors, chaired by Chairman & Managing Director Rahul Mangal, approved the unaudited standalone financial results on July 29, 2026. 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. Other income contributed ₹181.10 lakh, bringing total income to ₹12,763.83 lakh. Total expenses stood at ₹11,754.04 lakh, including cost of materials consumed at ₹9,460.84 lakh and employee benefit expenses of ₹755.94 lakh. 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. Earnings per share (EPS) rose to ₹2.72 from ₹1.82 in the previous year’s quarter.

Segmental Analysis

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.

Total segment assets increased to ₹76,485.64 lakh from ₹70,705.32 lakh at the end of FY26. Segment liabilities rose to ₹16,744.96 lakh from ₹11,668.68 lakh, reflecting higher working capital requirements in the manufacturing division.

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, investors should note that nearly 17% of the reported pre-tax profit improvement stems from this non-cash accounting adjustment rather than pure operational leverage.

Corporate Governance Updates

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.

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. The trading window for designated persons will open 48 hours after the dissemination of this announcement.

Mangal Electrical Industries has acquired industrial land in Rajasthan for ₹8 crore to expand its manufacturing facilities and support future business operations. The acquisition, completed on June 29, 2026, involves a total area of 1.4315 Hect. located at Revenue Village Parsarampura, Patwar Halka Sargoth, District Sikar, Rajasthan. The company purchased the land through cash consideration, excluding stamp duty, registration charges, and other incidental expenses.

The transaction includes Khasra No. 1148/1 and Khasra No. 1148/2. The acquisition is intended to augment manufacturing capacity and align with the company's long-term growth strategy. The company confirmed that the promoter, promoter group, and group companies have no interest in the transaction, which was entered into on an arm's length basis.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was signed by Naresh Kumar Sharma, Company Secretary & Compliance Officer, on behalf of Mangal Electrical Industries Limited.