Megatherm Induction reported a net profit of ₹236.81 crore for the year ended March 31, 2026, an increase of 11.2% compared to ₹213.06 crore in the previous year. Revenue from operations rose to ₹346.23 crore from ₹320.51 crore in FY25. The Board of Directors approved the audited financial results for the half-year and year ended March 31, 2026. The company has submitted an investor presentation on the H2 & FY26 audited financial results to the National Stock Exchange of India Ltd pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company’s total income for FY26 stood at ₹352.83 crore, up from ₹323.71 crore in the prior year. Profit before exceptional items and tax for the year was ₹313.55 crore. The financial results include an exceptional item of ₹7.56 million, primarily due to an increase in the provision for gratuity arising from the implementation of new Labour Codes. M/s. MSKA & Associates, Chartered Accountants, issued an audit report with an unmodified opinion on the audited financial results.

Financial Performance

The company’s earnings per share (EPS) for the year increased to ₹12.57 from ₹11.31 in the previous year. For the half-year ended March 31, 2026, the company reported a profit of ₹116.40 crore. The statutory auditors confirmed that the financial results give a true and fair view of the company's financial performance.

Strategic Updates and Growth Drivers

Megatherm Induction is expanding its transformer business, targeting a revenue potential of ₹110 crore by FY27 from Inverter Duty Transformers (IDT) and other segments. The company has successfully tested a 13.2 MVA IDT, validated by CPRI Bhopal. A new production and testing facility located at Vidyasagar Industrial Park, Kharagpur, West Bengal, has been commissioned with a capacity of 2000 MVA, which can be increased to 3000 MVA with minimal investment. The facility is the largest transformer manufacturing facility in Eastern India.

The company incorporated a new Joint Venture, Megatherm Cyprium Inc, on January 16, 2026, to sell and promote products in the North American market. Megatherm holds 49.99% shares in the JV, while Cyprium holds 50.01%. The company is also expanding its global presence with representatives in Brazil, Mexico, and Argentina, and office representation in the UK to address the European market.

Utilization of IPO Proceeds

Pursuant to SEBI regulations, the company provided a certificate on the utilization of Initial Public Offer (IPO) proceeds. The total amount received from the IPO was ₹53.91 crore. As of March 31, 2026, the company utilized ₹27.90 crore, leaving ₹26.01 crore unutilized. The unutilized funds of ₹26.00 crore are held as investments in fixed deposits, while the remaining ₹0.01 crore is held in a bank account for future utilization.

Management Commentary

In a post-earnings conference call held on June 2, 2026, management highlighted that the company expects to grow revenue by 20% to 25% CAGR over the next five to six years. The company has an order book of approximately ₹450 crore, including ₹80 crore from the transformer segment and significant export orders. Management noted that while raw material costs, particularly oil and transformer oil, have impacted margins recently, they expect these pressures to normalize within six months as new orders are booked at revised prices. The company plans to establish a fourth manufacturing facility for transformers and is targeting a steady-state EBITDA margin of around 15% once revenue crosses the ₹500 crore mark.

Megatherm Induction Limited has secured shareholder approval to provide loans, guarantees, or securities to its subsidiaries or other specified entities. The special resolution was passed with 99.98% of the valid votes cast in favor, following a remote e-voting process that concluded on May 29, 2026. This authorization permits the company to extend financial support under Section 185 of the Companies Act, 2013.

The postal ballot process was managed by scrutinizer Anjan Kumar Roy & Co, Company Secretaries. Voting commenced on April 30, 2026, and concluded on May 29, 2026, utilizing the electronic platform provided by National Securities Depository Limited (NSDL). The resolution was deemed passed on the final date of e-voting.

A total of 13,681,854 votes were cast in favor of the resolution by 13 voters, representing 99.9825% of the total valid votes. Conversely, 2,400 votes were cast against the resolution by 3 voters, accounting for 0.0175% of the total. There were no invalid votes recorded during the process.

The scrutinizer unblocked the remote e-voting module at 5:13 P.M. IST on May 29, 2026, in the presence of independent witnesses Sandip Paul and Sayan Bhattacharyya. The results have been submitted to the National Stock Exchange of India Ltd for record-keeping purposes.

Voting Results Summary