MV Electrosystems reported a net loss of ₹68.86 million for the quarter ended June 30, 2026, as revenue fell to ₹127.71 million. The company’s board approved these unaudited results on August 25, 2026.

The disclosure was made pursuant to Regulation 30 and 33 of the SEBI (LODR) Regulations, 2015. The company issued the intimation on August 25, 2026.

Financial Results

Revenue from operations declined to ₹127.71 million in Q1FY27, down from ₹134.48 million in the same period last year. Total income stood at ₹127.98 million, compared to ₹135.13 million in Q1FY26.

Total expenses amounted to ₹208.36 million, driven by employee benefit expenses of ₹43.47 million and finance costs of ₹11.78 million. Cost of raw material consumed was ₹123.26 million.

The company incurred a profit before tax loss of ₹80.38 million. After accounting for a deferred tax benefit of ₹11.52 million, the net loss for the quarter was ₹68.86 million. This compares to a net loss of ₹57.33 million in Q1FY26.

What the Numbers Show

The widening net loss despite a modest decline in revenue highlights pressure on cost structures. Employee benefit expenses rose significantly to ₹43.47 million from ₹25.01 million year-ago, contributing to higher total expenses. Additionally, the company reported a cash loss of ₹66.68 million during the quarter, marking the second consecutive quarter of cash losses.

Management attributed the elevated material costs to inventory consumption procured during the R&D phase at comparatively higher prices. Low production absorption also impacted margins, as manufacturing manpower was built up during FY26 ahead of propulsion production but volumes remained lower. The company incurred approximately ₹20 million in R&D expenditure in Q1FY27, resulting in an EBITDA loss of ₹54 million after R&D versus ₹34 million before such expenditure.

Order Book and Capacity Expansion

As of June 30, 2026, MV Electrosystems holds an executable order book of ₹989.32 crore for 564 units of 3-Phase Propulsion Equipment, including a three-year AMC contract. Additionally, the company has developmental orders worth ₹94.72 crore for new applications such as MEMU propulsion and composite converters.

The company is scaling manufacturing capacity with two facilities in Palwal, Haryana. Unit 1 has a certified installed capacity of 114 propulsion systems per year. Unit 2, currently being set up, will add 171 systems per year, bringing the potential combined capacity to 285 systems annually on a single-shift basis. An SMT line was commissioned at Unit 1 in March 2026.

Corporate Developments

The board meeting held on August 25, 2026, also approved several administrative appointments:

• Appointment of M/s Taruna Kalra & Associates as Secretarial Auditors for FY27 to FY31.
• Appointment of M/s G B S G & Associates as Internal Auditors for FY27.

The company will convene its 17th Annual General Meeting (AGM) on Tuesday, September 29, 2026, via video conferencing. Remote e-voting will be open from September 26 to September 28, 2026.

Management Participation

The following executives are scheduled to participate in the earnings call on Thursday, August 27, 2026, at 11:00 am IST:

• Mohit Vohra, Non-Executive Director
• Pankaj Rastogi, Managing Director
• Ajay Kumar, Chief Financial Officer

Dial-in Details

Participants can join the conference call using the numbers provided below.

For further information, investors may contact Akhilesh Gandhi, CFA, at Stellar IR.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0OWZ01020/96517b8e-bf84-411e-aa82-6b49fefdf9bc.pdf

mv electrosystems limited submitted its Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information (UPSI) to the National Stock Exchange of India Limited (NSE) and BSE Limited on August 06, 2026. The submission, made pursuant to Regulation 8(2) of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, outlines the company’s internal controls designed to prevent insider trading and ensure equitable dissemination of material information to investors. This regulatory filing reinforces the company’s compliance infrastructure regarding the handling of price-sensitive data.

The Code defines UPSI as any non-public information likely to materially affect security prices, including financial results, dividend declarations, capital structure changes, mergers, and changes in Key Managerial Personnel (KMPs). MV Electrosystems Limited has designated its Company Secretary, Sourabh Bansal, as the Compliance Officer responsible for monitoring adherence to these regulations. The Code mandates that all Designated Persons, including KMPs, directors, promoters, and employees two levels below the CEO, must adhere to strict trading windows and pre-clearance procedures.

Trading windows are closed from the end of each quarter until 48 hours after the declaration of financial results to the stock exchanges. Additionally, the window remains closed from the issuance of a Board meeting notice containing UPSI-related agenda items until 48 hours after the decision is communicated to the exchanges. During these closed periods, KMPs, connected persons, and designated persons are prohibited from trading in the company’s securities. However, the exercise of Employee Stock Options (ESOPs) is permitted during closed windows, though the sale of shares allotted upon exercise remains restricted.

Pre-Clearance and Trading Plans

The Code requires pre-clearance for all intended transactions by directors, KMPs, designated persons, and their dependents if the trade value exceeds ₹10,00,000 or involves more than 6,000 securities, whichever is lower. Applications must be submitted to the Compliance Officer using prescribed formats, accompanied by an undertaking that the applicant does not possess UPSI. Pre-cleared transactions must be executed within seven trading days; otherwise, fresh approval is required. Trades executed under an approved trading plan are exempt from pre-clearance but must be disclosed publicly at least 120 calendar days before commencement.

Designated persons must also disclose holdings and transactions involving immediate relatives and persons with whom they share a material financial relationship. Any contravention of the Code may result in disciplinary action, including wage freezes, suspension, or clawback provisions, without precluding regulatory action by SEBI.

Governance and Oversight

The Board of Directors retains overall responsibility for ensuring the implementation of the Code and approving policies for inquiries into suspected leaks of UPSI. The Audit Committee reviews compliance with the Prohibition of Insider Trading (PIT) Regulations at least once per financial year to verify the adequacy of internal controls. The Managing Director or Chief Executive Officer is tasked with introducing effective internal control systems to ensure adherence to these regulations.

The Code emphasizes that in cases where SEBI regulations or statutory provisions are more stringent than the company’s internal Code, the external regulations shall prevail. All records related to disclosures, trading windows, and pre-clearance applications must be maintained by the Compliance Officer for a minimum period of five years.