Safe Enterprises Retail Fixtures Limited approved the acquisition of a remaining 5.74% equity stake in its subsidiary, Safe Enterprises Retail Technologies Private Limited (SERTPL), on June 11, 2026, to convert it into a wholly owned subsidiary. The board sanctioned the purchase of 28,677 equity shares from promoter shareholders for a cash consideration expected to be between ₹4300 and ₹4400 per share, based on a valuation report from an independent registered valuer. This strategic move aims to facilitate deeper integration of operations, technology platforms, and strategic initiatives across the group. The transaction is slated for completion within 60 working days.

The meeting, conducted via video conferencing, also addressed the re-appointment of M/s. A D V & Associates, Chartered Accountants, as Statutory Auditors for a period of one financial year. The term extends from the conclusion of the Annual General Meeting for 2025-26 until the conclusion of the Annual General Meeting for Financial Year 2026-27. Additionally, the board appointed M/s. APRA & Associates LLP, Chartered Accountants, as Internal Auditors for the financial year 2026-27.

The acquisition involves purchasing shares from promoter shareholders Mr. Mikdad Saleem Merchant, Mr. Huzefa Saleem Merchant, and Mr. Saleem Shabbir Merchant. This transaction is classified as a related party transaction under SEBI Listing Regulations and will be conducted on an arm's length basis. SERTPL, incorporated on February 24, 2020, operates in the retail fixtures and shopfitting industry with a manufacturing unit in Pune, Maharashtra.

Financial Overview of SERTPL

SERTPL reported a turnover of ₹5368.53 Lakhs for the financial year 2025-26, up from ₹4249.47 Lakhs in the previous year. The entity is a material subsidiary and its business is closely aligned with the core operations of Safe Enterprises Retail Fixtures Limited.

Transaction Details

The board's decision follows regulatory disclosures required under SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, and SEBI no. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The consideration for the acquisition will be paid in cash. The company confirmed that no specific governmental or regulatory approvals are required for this acquisition.

Safe Enterprises Retail Fixtures Limited announced its audited financial results for the fiscal year ended March 31, 2026, reporting a substantial rise in profitability and operational revenue. On a consolidated basis, the company reported a net profit of ₹63.90 crore for FY26, a significant increase from ₹39.19 crore in the previous year. Revenue from operations surged 57.9% to ₹218.42 crore, compared to ₹138.31 crore in FY25. The audio recording of the earnings conference call conducted on May 19, 2026, to discuss these results is available on the company's website.

Financial Performance

The company’s operating EBITDA before extraordinary items grew by 60.0% to ₹79.09 crore in FY26 from ₹49.44 crore in the prior year. Consequently, the EBITDA margin improved to 36.2% from 35.7% in FY25. The PAT margin also saw an uptick, reaching 29.2% for the year ended March 31, 2026, compared to 28.3% in the previous year. Basic earnings per share (EPS) increased to ₹14.62 from ₹11.42 in the previous year.

Operational Highlights

For the year ended March 31, 2026, the company executed fixtures for 425 stores across 25 states and union territories, serving 88 unique customers. A key driver for the financial performance was the increase in revenue intensity per store, which rose to ₹51.39 lakh in FY26 from ₹31.08 lakh in FY25. This 65.35% increase was attributed to higher fixture volumes per outlet, larger project scopes, and an improved product mix.

Revenue from refurbishments and additions contributed approximately ₹54 crore, accounting for 24.8% of the total revenue for FY26. The company noted that refurbishments are a recurring part of the business with a cycle of approximately every 3-4 years.

Manufacturing and Expansion

The company expanded its Pune manufacturing facility by 46,505 sq. ft. in March 2026, increasing the total area to 96,505 sq. ft. Additionally, a new Ambernath plant with a capacity of 250,000 sq. ft. is scheduled for completion by December 2026. Post-completion, the existing leased Mumbai facilities will be consolidated into the new plant to drive efficiency.

Management provided guidance for the long term, suggesting a sustainable PAT margin of around 25%. The company also launched two new product lines, WAVE, an RFID-based self-checkout solution, and EVOLV, for the home interior segment.