SEDEMAC Mechatronics Limited has announced its highest-ever annual sales of control-intensive Electronic Control Units (ECUs), with Q4 FY26 performance showing exceptional growth of 65.1% year-on-year. The company sold 10.43 lakh control-intensive ECUs in Q4 FY26, compared to 6.32 lakh units in the corresponding quarter of the previous year.

Record-Breaking Annual Performance

For the full financial year FY26, SEDEMAC achieved remarkable growth with total control-intensive ECU sales reaching 39.01 lakh units, representing a substantial 60% increase from 24.39 lakh units sold in FY25. This performance marks the company's highest-ever annual and trailing twelve-month sales figures.

Comprehensive ECU Product Portfolio

The control-intensive ECUs encompass a diverse range of specialized electronic control units that demonstrate SEDEMAC's technological capabilities. The product portfolio includes Integrated Starter Generator Electronic Control Unit (ISG ECU), Integrated Starter Generator + Electronic Fuel Injection Electronic Control Unit (ISG+EFI ECU), and Integrated Starter Generator + Transistor Controlled Ignition Electronic Control Unit (ISG+TCI ECU).

Business Profile and Market Position

SEDEMAC Mechatronics operates as a supplier of control-intensive, critical-to-the-application electronic control units to leading original equipment manufacturers in mobility and industrial markets across India, the United States, and Europe. The company's revenue primarily stems from products incorporating proprietary control technologies developed in-house, enabling the delivery of distinct value propositions to OEM customers.

Regulatory Compliance and Transparency

The company announced these results through a press release issued under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. SEDEMAC trades on BSE with scrip code 544723 and on NSE under the symbol SEDEMAC, maintaining transparency with stakeholders through regular disclosures and updates on its official website.

SEDEMAG Mechatronics Limited has informed stock exchanges about receiving a penalty order of ₹74,93,508 from the Income Tax Department. The company disclosed this information on March 25, 2026, in compliance with SEBI Listing Regulations regarding mandatory disclosure of regulatory actions.

Penalty Details and Background

The penalty order was issued by the Assessment Unit, National Faceless Assessment Centre, Income Tax Department under Section 270A of the Income Tax Act, 1961. The company received the order via email on March 24, 2026, at 5:04 PM IST.

Nature of Violation

The penalty stems from the disallowance of weighted deduction related to expenditure incurred on the company's in-house R&D Unit. Specifically, the issue concerns:

• Disallowance under Section 35(2AB) of the Income Tax Act
• R&D Unit approved by Department of Scientific and Industrial Research (DSIR)
• Matter currently pending on merits before the Bombay High Court

Company's Response and Next Steps

SEDEMAG Mechatronics has announced its intention to challenge the penalty order through proper legal channels. The company's response includes:

• Filing an appeal before the appropriate appellate authority
• Seeking advice from tax advisors on the matter
• Expressing confidence in achieving a favorable outcome

Financial Impact Assessment

Despite the substantial penalty amount, the company has assessed that the order will not have any material financial impact. This assessment is based on:

• Company's evaluation of prevailing law
• Advice received from tax advisors
• Expectation of successful appeal outcome

The disclosure was made in accordance with Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, which mandates disclosure of regulatory actions against listed entities. The information has also been uploaded to the company's website at www.sedemac.com for public access.