Parth Electricals & Engineering Limited has secured shareholder approval for a preferential issue of equity shares and warrants to raise ₹1,376 lakh. The resolutions were passed via remote e-voting and an Extraordinary General Meeting (EGM) held on June 06, 2026. The proceeds are primarily earmarked for working capital requirements and the repayment of high-cost unsecured debt, which supports the company's business expansion objectives.

The EGM, conducted through video conferencing, commenced at 5:00 PM and concluded at 5:11 PM. Mr. Ranjit Kumar Singh, Practicing Company Secretary of Ranjit & Associates, served as the Scrutinizer. A total of 88,20,083 votes were polled, representing 64.53% of the total outstanding shares. All resolutions were approved with 100% of the votes cast in favour and no votes against.

Voting Results Summary

The meeting sought approval for two special resolutions concerning the preferential allotment of securities. The first resolution authorized the issuance of warrants to the promoter group, while the second permitted the issuance of equity shares to the non-promoter category.

Utilization of Issue Proceeds

The company has disclosed a detailed schedule for deploying the funds across two financial years. The allocation focuses on meeting working capital needs arising from business expansion, with a smaller portion reserved for general corporate purposes.

The preferential issue involves the allotment of 3,00,000 equity shares and 1,00,000 warrants. Proceeds aggregating to ₹1,118 lakh will be received upon the allotment of equity shares and 25% of the warrant consideration in FY 2026-27. The remaining 75% of the warrant consideration, amounting to ₹258 lakh, is expected in FY 2027-28 upon conversion of warrants, which must be exercised within 18 months of allotment.

Parth Electricals & Engineering Limited reported its audited standalone financial results for the year ended 31st March 2026, demonstrating significant growth in profitability and operational scale. The company's net profit for the fiscal year rose by 41% to ₹14.24 Cr, compared to ₹10.12 Cr in the previous year. Revenue from operations increased to ₹198.00 Cr from ₹174.67 Cr, driven by robust business activities in the electric switchgear equipment segment. Management stated during an investor call that the company expects to maintain a revenue growth rate of 25% to 30% over the next three to five years, supported by new manufacturing facilities and a strong order book.

Financial Performance Overview

The board approved the financial results during a meeting held on 14th May 2026. The profit before tax for the year stood at ₹19.12 Cr, up from ₹13.56 Cr in FY25. Basic earnings per share (EPS) improved to ₹11.35 from ₹10.27 in the previous year. The company's total income for the year reached ₹200.95 Cr. The EBITDA margin for FY26 grew by 140 basis points to 7.19%, while the EBITDA margin improved to 10.53%. The four-year CAGR for revenue is 45%, EBITDA 69%, and PAT 80%.

Balance Sheet and Cash Flows

The company's balance sheet size expanded significantly, with total assets increasing to ₹187.76 Cr as of 31st March 2026, up from ₹106.76 Cr in the previous year. This growth was supported by a successful Initial Public Offering (IPO) during the year, which raised ₹62.00 crore. Shareholders' funds strengthened to ₹111.45 Cr, primarily due to the increase in share capital and reserves & surplus. Cash and cash equivalents improved substantially to ₹43.59 Cr from ₹27.37 Cr at the end of the previous year.

IPO Proceeds Utilization

Out of the total ₹62.00 crore raised through the IPO, ₹37.68 crore has been utilized towards the objects specified in the prospectus, while ₹24.31 crore remains unutilized as of 31st March 2026. A significant portion of the unutilized funds, amounting to ₹23.29 crore, has been invested in fixed deposits. The funds have been deployed towards establishing manufacturing facilities in Gujarat and Odisha, as well as the repayment of short-term borrowings.

Expansion and Capacity Additions

The company is advancing its capital expenditure plans to shorten the timeline for the Odisha facility. Instead of waiting for land allotment and construction, the company has entered into a long-term rental agreement for a facility in Khordha, Odisha. This strategy is expected to cut the timeline from May 2027 to October 2026, allowing the company to contribute to the Eastern India market eight to nine months earlier. The GIS manufacturing facility in Gujarat is on track for inauguration in September 2026. Management indicated that the new GIS plant is expected to add ₹200 Cr in revenue, while the Odisha facility is expected to add ₹100 Cr, totaling an incremental capacity of ₹300 Cr.

Order Book and Future Outlook

The company maintains a strong order book of ₹271.59 Cr as of date, expected to be executed during FY27 and partly in H1FY28. The order book includes Manufacturing & Supply at ₹110.46 Cr, EPC at ₹144.57 Cr, and Services at ₹16.57 Cr. Key recent wins include an ₹84 Cr order from PGVCL for the RDSS project and a ₹45.4 Cr order for a compact substation for Reliance Data Center's AI factory in Jamnagar. The company is also expanding its export footprint, having dispatched products to the USA, Zambia, Bhutan, and Nepal, with export revenues reaching ₹31 Cr in FY26.