Parth Electricals & Engineering Limited has disclosed a detailed schedule for deploying ₹1,376 lakh raised through a preferential issue of equity shares and warrants, following an observation from the National Stock Exchange of India Limited (NSE). The company issued a corrigendum to its Extraordinary General Meeting (EGM) notice on June 02, 2026, to clarify the utilization of these proceeds, which are primarily earmarked for working capital requirements and general corporate purposes. The EGM is scheduled for June 06, 2026, to seek shareholder approval for this issuance.

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 during FY 2026-27. The remaining 75% of the warrant consideration, amounting to ₹258 lakh, is expected to be received in FY 2027-18 upon the conversion of warrants, which must be exercised within 18 months of allotment.

Utilization of Issue Proceeds

The company has outlined the estimated allocation of funds across two financial years. The majority of the funds will be directed towards meeting working capital requirements arising from business expansion, while a smaller portion is reserved for general corporate purposes, including the repayment of high-cost unsecured debt.

The funds designated for general corporate purposes will not exceed 25% of the gross proceeds. Until the full amount is deployed, the company intends to park the unutilized funds in bank deposits, mutual funds, or other short-term investment avenues permitted under applicable laws. These estimates are based on internal management assessments and have not been appraised by any external financial institution.

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.