MSAFE Equipments Reports FY26 PAT of ₹2,242.02 Lakhs; Targets 50% Revenue Growth from FY27
Msafe Equipments Limited approved its FY26 audited results at a board meeting on May 11, 2026, reporting revenue from operations of ₹10,349.96 lakhs (up 45.08% YoY) and PAT of ₹2,242.02 lakhs (up 72.33% YoY), with EBITDA margins expanding to 39.49%. The company highlighted capacity expansion ahead of schedule, IPO proceeds utilisation of ₹501.67 lakhs out of ₹4,802.23 lakhs, and management guidance targeting at least 50% revenue growth from FY27, supported by new manufacturing capacity and entry into the formwork segment.
*this image is generated using AI for illustrative purposes only.
Msafe Equipments Limited held its Board of Directors meeting on Monday, May 11, 2026, wherein the board considered and approved the audited financial results for the half year and financial year ended March 31, 2026. The statutory auditors, M/s. V.K. Kila & Co., Chartered Accountants (FRN-007772C), issued an unmodified opinion on the financial results, which were prepared in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This marks the company's first set of results as a listed entity, following its listing on the BSE SME platform on February 4, 2026. The company operates in the single segment of manufacturing of aluminium and steel scaffolding and FRP ladders, and accordingly no separate segment disclosures are required under AS 17.
Financial Performance Overview
The company delivered strong growth in both revenue and profitability for FY26, with revenue from operations growing 45.08% year-on-year and Profit After Tax (PAT) rising 72.33%. EBITDA margins expanded meaningfully, reflecting operating leverage and efficiency gains. The following table presents key financial metrics across reporting periods (₹ in Lakhs, except margins and EPS):
| Particulars: | H2 FY26 | H2 FY25 | Change (YoY) | FY26 | FY25 | Change (YoY) |
|---|---|---|---|---|---|---|
| Total Revenue from Operations: | 5,448.88 | 3,924.43 | ↑ 38.84% | 10,349.96 | 7,134.07 | ↑ 45.08% |
| EBITDA: | 2,165.50 | 1,301.65 | ↑ 66.37% | 4,086.75 | 2,607.75 | ↑ 56.72% |
| EBITDA Margin: | 39.74% | 33.17% | ↑ 657 bps | 39.49% | 36.55% | ↑ 294 bps |
| PAT: | 1,191.99 | 620.96 | ↑ 91.96% | 2,242.02 | 1,301.21 | ↑ 72.33% |
| PAT Margin: | 21.88% | 15.82% | ↑ 606 bps | 21.66% | 18.24% | ↑ 342 bps |
The detailed income statement for the year reflects the following line items (₹ in Lakhs, except EPS):
| Particulars: | H2 FY26 (Audited) | H1 FY26 (Audited) | H2 FY25 (Unaudited) | FY26 (Audited) | FY25 (Audited) |
|---|---|---|---|---|---|
| Revenue from Operations: | 5,448.88 | 4,901.08 | 3,924.43 | 10,349.96 | 7,134.07 |
| Other Income: | 49.70 | 6.20 | 27.56 | 55.90 | 28.11 |
| Total Revenue: | 5,498.58 | 4,907.28 | 3,951.99 | 10,405.86 | 7,162.18 |
| Cost of Material Consumed: | 1,705.53 | 1,661.86 | 872.29 | 3,367.39 | 2,017.82 |
| Changes in Inventories: | (546.93) | (515.20) | 98.24 | (1,062.13) | (153.99) |
| Employee Benefit Expense: | 1,148.16 | 856.00 | 686.99 | 2,004.16 | 1,143.18 |
| Financial Cost: | 168.12 | 156.95 | 149.31 | 325.07 | 268.74 |
| Depreciation and Amortization: | 459.43 | 361.63 | 363.77 | 821.06 | 624.20 |
| Other Expenses: | 976.63 | 977.17 | 965.26 | 1,953.80 | 1,519.31 |
| Total Expenses: | 3,910.94 | 3,498.41 | 3,135.86 | 7,409.35 | 5,419.26 |
| Profit Before Tax: | 1,587.64 | 1,408.87 | 816.13 | 2,996.51 | 1,742.92 |
| Current Tax: | (453.16) | (422.10) | (223.35) | (875.26) | (464.02) |
| Deferred Tax: | 57.51 | 63.26 | 28.18 | 120.77 | 22.31 |
| Total Tax Expenses: | (395.65) | (358.84) | (195.17) | (754.49) | (441.71) |
| Net Profit: | 1,191.99 | 1,050.03 | 620.96 | 2,242.02 | 1,301.21 |
| Basic EPS (₹10 face value): | 6.87 | 6.56 | 3.88 | 13.45 | 8.13 |
| Diluted EPS (₹10 face value): | 6.87 | 6.56 | 3.88 | 13.45 | 8.13 |
Balance Sheet Highlights
The company's total assets expanded significantly, reflecting the impact of its IPO proceeds and business growth. Key balance sheet figures as at March 31, 2026, compared to March 31, 2025, are presented below (₹ in Lakhs):
| Particulars: | March 31, 2026 | March 31, 2025 |
|---|---|---|
| Share Capital: | 2,040.00 | 100.00 |
| Reserves and Surplus: | 7,760.78 | 2,464.92 |
| Long Term Borrowings: | 995.03 | 456.43 |
| Long Term Provisions: | 154.18 | 65.65 |
| Short Term Borrowings: | 2,864.24 | 2,799.42 |
| Trade Payables (MSME): | 192.82 | 547.90 |
| Trade Payables (Others): | 237.52 | 102.07 |
| Other Current Liabilities: | 622.90 | 348.41 |
| Short Term Provisions: | 33.76 | 124.14 |
| Property, Plant and Equipment: | 4,871.11 | 3,935.52 |
| Intangible Assets: | 10.04 | 7.87 |
| Deferred Tax Assets (Net): | 272.20 | 57.78 |
| Other Non-Current Assets: | 14.78 | 85.92 |
| Inventories: | 2,395.23 | 911.59 |
| Trade Receivables: | 2,367.39 | 1,623.33 |
| Cash and Cash Equivalents: | 4,317.53 | 54.06 |
| Short Term Loans and Advances: | 213.15 | 99.35 |
| Other Current Assets: | 439.80 | 233.52 |
| Total Assets/Liabilities: | 14,901.23 | 7,008.94 |
Cash Flow Summary
The cash flow statement for the year ended March 31, 2026, prepared under the indirect method, reflects the following key movements (₹ in Lakhs):
| Particulars: | FY26 | FY25 |
|---|---|---|
| Cash Generated from Operating Activities: | 2,186.60 | 1,798.93 |
| Net Cash from Operating Activities (A): | 1,153.05 | 1,435.39 |
| Purchase of Property, Plant and Equipment: | (2,275.37) | (2,114.31) |
| Investment Purchased: | (4,300.56) | – |
| Sale of Property, Plant and Equipment: | 229.43 | 229.64 |
| Net Cash from Investing Activities (B): | (6,346.50) | (1,815.31) |
| Proceeds from Issue of Equity Share in IPO: | 5,412.00 | – |
| Expenses Related to IPO: | (535.21) | – |
| Raising/(Repayment) of Long Term Loan: | 1,089.75 | (67.88) |
| Raising/(Repayment) of Short Term Loan: | (486.34) | 736.80 |
| Net Cash from Financing Activities (C): | 5,155.13 | 400.17 |
| Net Increase/(Decrease) in Cash: | (38.32) | 20.25 |
| Opening Cash and Cash Equivalents: | 52.17 | 31.92 |
| Closing Cash and Cash Equivalents: | 13.85 | 52.17 |
Financing activities were significantly boosted by proceeds from the IPO amounting to ₹5,412.00 lakhs, partially offset by IPO-related expenses of ₹535.21 lakhs.
IPO Proceeds Utilisation
The company completed its initial public offer (IPO) of 54,00,000 equity shares, comprising a fresh issue of 44,00,000 equity shares and an offer for sale of 10,00,000 equity shares, at a face value of ₹10 each at a premium of ₹113 per share. The utilisation of IPO proceeds as at March 31, 2026, is summarised below (₹ in Lakhs):
| Sr. No: | Item Head: | Amount as per Prospectus: | Amount Utilised: | Unutilised Amount: |
|---|---|---|---|---|
| 1: | New Manufacturing Facility (Capex): | 3,225.92 | – | 3,225.92 |
| 2: | Equipment for Rental Purpose (Capex): | 600.00 | 120.00 | 480.00 |
| 3: | Working Capital Requirements: | 800.00 | 205.36 | 594.64 |
| 4: | General Corporate Purposes: | 176.31 | 176.31 | – |
| Total: | 4,802.23 | 501.67 | 4,300.56 |
The unutilised amount of ₹4,300.56 lakhs as at March 31, 2026, has been temporarily invested in fixed deposits with ICICI Bank, in compliance with applicable regulatory requirements. The company confirmed that utilisation of IPO proceeds is in line with the objects stated in the prospectus, with no material deviation or variation.
Capacity Expansion and Strategic Initiatives
The company outlined a series of capacity expansion initiatives aimed at scaling its manufacturing and rental operations. MS Scaffolding capacity has already been increased to 6,285 TPA from the 3,285 TPA committed during the IPO, significantly ahead of schedule, by temporarily renting facilities to meet rising demand. Aluminium and ladder capacity is planned to increase from 15.12 lakh to 25.12 lakh units per annum by May 2027. By May 2027, after the owned facility is commissioned, the company will evaluate whether to continue the temporary capacity based on demand and utilisation. Additionally, the company has forayed into the formwork division with the appointment of a business head and the launch of a flagship product, with plans to commence 500 TPA capacity by December 2026.
Management Commentary
Commenting on the performance, Mr. Pradeep Aggarwal, Chairman & Managing Director, stated:
"We are pleased to have successfully raised growth capital through our IPO, which is being strategically deployed towards expanding our scaffolding capacity by nearly 2x. I am also pleased to share that the MS scaffolding capacity expansion committed during the IPO has already been achieved significantly ahead of schedule through temporary rented facilities, enabling us to meet growing demand and accelerate our growth momentum. During the year, we have also forayed into the formwork segment with a 500 Ton planned capacity expansion, marking a key milestone in our evolution from a safety equipment provider to an integrated structural equipment solutions company. With the launch of our flagship products and the onboarding of experienced professional management, we are building a strong foundation for the next phase of growth. Looking ahead, we remain confident of accelerating our growth trajectory. With the commissioning of new manufacturing capacity, expansion into complex and value-added products, and increasing focus on scaffolding and formwork solutions, we expect growth to pick up meaningfully from FY27 and are targeting at least 50% revenue growth. We will continue to double down on our rental-led business model, which offers superior margins, strong return ratios, and predictable cash flows."
Earnings Conference Call
Following the board meeting, the company scheduled an Earnings Conference Call on Thursday, May 14, 2026, at 11:00 am IST, organised in association with Moonwalk Capital, to discuss H2 and FY26 financial performance with investors and analysts. Senior management representatives attending the call include Mr. Pradeep Aggarwal (Chairman), Mr. Ajay Kumar Kanoi (Whole Time Director), Mr. Sombir Bisla (Chief Financial Officer), and Mrs. Renuka Uniyal (Company Secretary).
| Parameter: | Details |
|---|---|
| Date: | Thursday, May 14, 2026 |
| Time: | 11:00 am IST |
| Meeting ID: | 81814748740 |
| Passcode: | 876704 |
| Contact (Company): | cs@msafegroup.com / +919205050964 |
| Contact (IR Team): | moonwalkventuresinfo@gmail.com / +917014618970 |
The Regulation 30 intimation for the board meeting outcome was submitted to BSE Limited on May 11, 2026, bearing reference number MSAFE/SE/2026-27/10, and was signed by Company Secretary and Compliance Officer Mrs. Renuka Uniyal (M No. A71663).
About MSAFE Equipments Limited
Msafe Equipments Limited is a fast-growing player in India's scaffolding and access solutions industry, engaged in the manufacturing, sales and rental of aluminium scaffolding systems, MS scaffolding and FRP ladders. The company operates a differentiated asset-backed rental model, enabling recurring revenue generation, high asset utilisation and a strong margin profile. With a pan-India presence supported by a robust warehouse and distribution network, MSAFE caters to a diverse customer base across infrastructure, construction, industrial and maintenance sectors. The company continues to benefit from structural tailwinds including increasing safety regulations, a shift from unorganised to organised scaffolding systems, and rising infrastructure activity across India.
How will Msafe's transition from temporary rented facilities to its own new manufacturing plant impact margins and capital efficiency once the owned facility is commissioned by May 2027?
What competitive dynamics and pricing pressures could Msafe face as it scales its formwork division, given that it is entering a segment dominated by more established players?
With ₹3,225.92 lakhs of IPO proceeds earmarked for the new manufacturing facility still unutilised, what construction milestones and timelines should investors monitor to assess execution risk?
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