Mold-Tek Technologies has approved a bonus share issue in a 1:1 ratio and recommended a final dividend of ₹2 per share for FY26. The Board of Directors made these announcements in its meeting held on August 26, 2026. The bonus issuance is subject to shareholder approval at the Annual General Meeting (AGM).

Bonus share issue details

The company will issue one bonus equity share of face value ₹2 for every fully paid-up equity share of ₹2 held by shareholders as on the record date. This 1:1 bonus issue effectively doubles the number of shares held by each shareholder, with new shares issued at no additional cost. The total share capital increases proportionally, while the value per share adjusts accordingly.

The following table summarises the key details of the bonus share announcement:

The bonus equity shares will be issued out of free reserves available as on March 31, 2026. The company has Rs. 1,15,00,36,940 available in free reserve/retained earnings as of that date. The bonus issue is expected to be implemented within two months from the date of the board meeting. The specific record date for determining entitlement will be announced in due course.

The existing authorised equity share capital stands at ₹13,00,00,000. Management clarified that the proposal shall not impact the solvency margin or any other financial parameters of the Company.

Final dividend recommendation

The board also recommended a final dividend of ₹2.00 per equity share for the financial year ending March 31, 2026. This recommendation is subject to approval by members at the ensuing Annual General Meeting (AGM).

Key dates for the dividend and AGM are as follows:

The AGM will be conducted through video conference or Other Audio Visual Means. If declared, the dividend will be paid within timelines prescribed under law, subject to applicable tax deductions.

Management commentary

Speaking on the occasion, Laxmana Rao Janumahanti, Chairman & Managing Director, said the issuance marks an important chapter in the Company’s journey as it celebrates its 25th anniversary. He stated that the move provides an opportunity to express appreciation for the continued trust and confidence reposed by valued shareholders.

Mold-Tek Technologies reported a 12-fold increase in net profit for Q1FY27 compared to the same period last year, driven by strategic downsizing of its non-performing Mechanical Engineering Services (MES) division and enhanced operational efficiencies. Chairman and Managing Director Lakshmana Rao highlighted that the company achieved this growth without any contribution from its recently acquired US subsidiary, Beryl, which is currently undergoing integration. The profit surge reflects a shift towards high-margin civil engineering projects and aggressive automation initiatives that have boosted per-employee productivity.

The company’s financial performance was bolstered by a reduction in employee costs and expensive software expenses associated with the automotive EV segment, which had been bleeding losses for the past two years. Additionally, the absence of mark-to-market (MTM) losses in the current quarter, unlike the previous quarter, further aided bottom-line improvement. Management noted that the EBITDA margin reached 23% in Q1FY27, significantly higher than the previous year’s 11%, and expressed confidence that margins could sustainably remain above 20%.

Operational Highlights and Work Order Book

The civil engineering segment continues to show strong traction, with work on hand rising to $4.5 million as of August 2026, up from $3.7 million in the corresponding period last year. This robust order book provides visibility into sustained revenue flows for the coming quarters. In contrast, the MES division’s work on hand remains at $1.15 million, similar to last year, but the team size has been reduced from 125–130 people to a leaner 50–60 employees focused on electrical distribution and substation design.

Beryl Integration and Future Growth

Beryl, the Florida-based residential permitting and inspection firm acquired by Mold-Tek, is currently at break-even. Management expects Beryl to become profitable from Q3FY27 onwards as an Indian design team begins supporting US operations. The company has expanded Beryl’s operations into Georgia, leveraging its Atlanta office to secure new contracts. A recent $1 million Master Purchase Order from Hillsborough County is expected to provide steady workflow over the next 12 months.

Lakshmana Rao outlined a target of ₹240–250 crore revenue for FY27, excluding Beryl’s contribution. For FY28, the company aims for ₹300–350 crore, contingent on the successful acquisition of a US-based structural engineering firm with Professional Engineers (PEs). This acquisition is critical to enabling Mold-Tek to bid for larger general contractor projects on a percentage-of-cost basis rather than hourly rates. The deal is expected to close by October 2026 if negotiations proceed smoothly.

What the Numbers Show

The dramatic improvement in profitability is largely structural rather than cyclical. By shedding the loss-making automotive EV design business and automating core processes, Mold-Tek has transformed its cost base. The divergence between the stagnant MES work order book and the growing civil engineering pipeline indicates a successful strategic pivot. Furthermore, the potential to integrate Beryl’s client relationships with Mold-Tek’s design capabilities could unlock significant cross-selling opportunities, particularly in the data center and power distribution sectors, which represent a $5–10 million annual opportunity for the company.