Merritronix Limited reported a near doubling of its net profit for FY26, driven by robust demand in the defence and aerospace sectors. The electronics manufacturing services (EMS) provider posted a profit after tax (PAT) of ₹154.85 crore for the year ended March 31, 2026, up from ₹84.33 crore in the previous year.

Revenue from operations grew 37% year-on-year to ₹1,558.96 crore, reflecting higher volumes and an improving business mix. The company’s EBITDA margin expanded to 17.69% from 13.46% in FY25, underscoring improved operating leverage.

Financial Performance

The Hyderabad-based firm demonstrated strong top-line growth alongside significant bottom-line expansion. Total income reached ₹1,560.80 crore, while total expenses stood at ₹1,330.60 crore. The profit before tax (PBT) increased to ₹223.30 crore from ₹126.55 crore in FY25.

What the Numbers Show

The divergence between revenue growth (37%) and expense growth highlights the scalability of Merritronix’s model. While revenue surged, total expenses grew at a slower pace, allowing EBITDA to grow over 80%. This operational efficiency was further supported by a shift towards higher-value turnkey manufacturing solutions, which now form the bulk of its revenue stream compared to lower-margin job work.

Balance Sheet and Capital Structure

Merritronix strengthened its balance sheet during FY26 through a bonus issue and preferential allotments of equity shares. The company’s net worth increased significantly to ₹525.85 crore. Consequently, the debt-equity ratio improved to 0.82 times from 1.10 times in the previous year.

Short-term borrowings rose to ₹379.02 crore, primarily to fund working capital requirements including inventory and receivables, which expanded alongside sales. Cash and cash equivalents stood at ₹256.96 crore as of March 31, 2026.

Operational Highlights

Aerospace and defence continue to be the core revenue drivers, accounting for 97.81% of total revenue. The company maintained a repeat customer rate of 86.08%, indicating strong client retention among premier public sector undertakings like Bharat Electronics Limited (BEL) and Hindustan Aeronautics Limited (HAL).

As of June 30, 2026, the order book stood at ₹96.06 crore, providing visibility into future revenues. The company also commissioned a new Panasonic NPM D3A SMT line in January 2026 to enhance capacity for high-complexity assemblies.

Strategic Developments

Subsequent to the financial year-end, Merritronix completed its initial public offering and listed on the BSE SME Platform. The listing aims to strengthen the capital base for future capacity expansion and R&D-led capability building. Additionally, the company entered into exclusive manufacturing partnerships with Stuaam Technologies and Analogic Design Technologies to deepen its presence in defence communications and analog electronics.

Merritronix Ltd concluded its virtual investor meet on July 23, 2026, engaging with 28 distinct stakeholders including institutional investors and high-net-worth individuals. The session, scheduled from 4:00 PM to 5:00 PM IST, served as a platform for the company’s management to interact with investors based strictly on publicly available information. The meeting was conducted in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency while avoiding the disclosure of any unpublished price-sensitive information (UPSI).

The filing submitted to BSE Limited on July 24, 2026, details the participation of various financial institutions and advisory firms. Key participants included AS Capital, Elabs, Astralit Investments, Nirvana Capital, Jiva Capital, Lakshya Cap, Finviz Capital, Minerva Capital Research Solutions, Nova Orbit, Iden Investment Advisor Pvt Ltd, Samdareeya Capital, Solidarity Advisors Pvt Ltd, Tradelink Exime, SIDBI, Prospera Wealth Private Limited, Cliq Ventures, ZTO Capital Advisers, and Toro Wealth Managers. Additionally, seven High-Net-Worth Individual (HNI) investors participated in the group interaction.

Participant Breakdown

The following table outlines the key categories of participants who attended the virtual session:

Mandava Swathi, Company Secretary & Compliance Officer, signed the intimation confirming the outcome of the meeting. The company noted that all discussions were confined to generally available information, reinforcing its commitment to regulatory compliance and fair disclosure practices.

Regulatory Compliance

The investor meet was organized to facilitate direct engagement between Merritronix Ltd and its stakeholder base. By adhering to SEBI Listing Regulations, the company ensured that no material non-public information was shared during the interaction. This approach aligns with broader market standards for maintaining equitable access to information for all investors. The successful completion of the meet underscores the company's proactive stance on corporate governance and investor relations.