Munjal Showa reported a year-on-year increase in net profit of 35.4% to ₹112.26 crore for the quarter ended June 30, 2026 (Q1FY26), driven by an 18.0% rise in revenue from operations to ₹3,474.98 crore. The Gurugram-based auto components manufacturer also saw its EBITDA margin expand to 3.7% from 3.4% in the corresponding period last year, reflecting improved operational leverage.

The Board of Directors approved the unaudited standalone financial results for Q1FY26 on August 03, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the statutory auditors, Deloitte Haskins & Sells LLP, under Regulation 33.

Revenue and Profitability Performance

Revenue from operations stood at ₹3,474.98 crore in Q1FY26, up from ₹2,860.41 crore in Q1FY25. Total income, which includes other income of ₹130.72 crore, reached ₹3,605.70 crore compared to ₹2,970.54 crore in the previous year’s quarter.

Net profit after tax (PAT) for the quarter was ₹112.26 crore, a significant improvement over the ₹82.82 crore reported in Q1FY25. The company’s earnings per share (EPS) increased to ₹2.81 from ₹2.07 in the year-ago period.

Operational Efficiency and Margins

Munjal Showa’s EBITDA grew to ₹128.70 crore from ₹98.81 crore in Q1FY25, marking a 30.2% year-on-year expansion. This growth outpaced revenue growth, leading to an improvement in the EBITDA margin to 3.7% from 3.4%.

Total expenses for the quarter were ₹3,477.01 crore, compared to ₹2,871.73 crore in Q1FY25. Cost of materials consumed rose to ₹2,704.04 crore from ₹2,256.60 crore, aligning with the higher production volumes. Employee benefits expense increased to ₹338.19 crore from ₹279.80 crore, while other expenses stood at ₹372.26 crore against ₹331.19 crore in the prior year.

What the Numbers Show

The divergence between revenue growth (18.0%) and net profit growth (35.4%) highlights strong operating leverage during the quarter. While material costs scaled with revenue, fixed cost absorption and efficient management of other expenses allowed bottom-line profitability to accelerate faster than top-line sales. The expansion in EBITDA margin confirms that the company is benefiting from scale efficiencies in its auto components manufacturing segment.

Munjal Showa Limited has scheduled its 41st Annual General Meeting (AGM) for Monday, August 24, 2026, to approve the audited financial statements for FY26 and declare a final dividend of ₹4.50 per equity share. The company is urging shareholders holding physical securities to update their Know Your Customer (KYC) details and register email addresses with their Depository Participants or Registrar and Transfer Agent (RTA) to ensure seamless access to the digital Annual Report and remote e-voting facilities. Failure to update these details may result in dividend payments being held in the Unpaid Dividend Account until compliance is achieved.

The Board of Directors has fixed Wednesday, August 05, 2026, as the record date for determining dividend entitlement. The book closure period runs from Thursday, August 06, 2026, to Monday, August 24, 2026. Shareholders eligible to vote are those holding shares as of Monday, August 17, 2026. Remote e-voting will be facilitated by Central Depository Services (India) Limited (CDSL) from Friday, August 21, 2026, at 9:00 a.m. IST to Sunday, August 23, 2026, at 5:00 p.m. IST.

Financial Performance and Operational Highlights

In FY26, Munjal Showa reported a 5.2% year-on-year increase in revenue from operations to ₹1,31,542 lakhs. However, profit after tax (PAT) fell 24% to ₹2,187 lakhs, driven by a significant drop in other income and an exceptional one-time charge related to new labour codes. Despite the earnings contraction, the company maintained its dividend payout, reflecting management’s confidence in long-term fundamentals.

Operating expenses remained relatively stable, with employee benefits increasing slightly to ₹12,307 lakhs. The company successfully transitioned from SAP ECC to SAP S/4HANA during the year to enhance process integration and data-driven decision-making.

Leadership Continuity and Board Re-appointments

A key agenda item at the AGM is the re-appointment of Mr. Yogesh Chander Munjal as Chairman & Managing Director for a further five-year term, effective September 01, 2026, to August 31, 2031. As he attained the age of 70 in February 2010, his continuation requires shareholder approval via a special resolution under Section 196(3) of the Companies Act, 2013. His proposed remuneration includes a basic salary of ₹32,50,000 per month and special pay of ₹3,00,000 per month, along with perquisites and a commission not exceeding 1% of net profits.

Mr. Neeraj Munjal and Mr. Tetsuya Katsumata, who joined the board in May 2025, offer themselves for re-appointment as directors liable to retire by rotation. Both bring extensive experience in the auto-component sector, with Mr. Munjal contributing 26 years and Mr. Katsumata 36 years of expertise.

Compliance and Investor Updates

The secretarial audit report highlighted minor compliance gaps, including a temporary shortfall in board strength following the resignation of Mr. Kazuhiro Nishioka in April 2025 and a delayed submission of board meeting outcomes to the National Stock Exchange. The company has since strengthened internal controls to prevent recurrence. Unpaid dividends amounting to ₹10,10,255 from FY2018 were transferred to the Investor Education and Protection Fund (IEPF) in October 2025, along with 13,473 equity shares that remained unclaimed for seven consecutive years.

Shareholders are reminded to update KYC details pursuant to SEBI Master Circular No. HO/38/13/(4)2026-MIRSD-POD/I/4298/2026 dated February 06, 2026. This circular mandates listed companies to record PAN, Address with PIN code, Mobile Number, Bank Account details, Specimen Signature, and choice of Nomination for security holders holding securities in physical mode. From April 1, 2024 onwards, dividends for non-compliant folios will be paid electronically only upon furnishing these details. Until then, such amounts remain in the Unpaid Dividend Account.