Sedemac Mechatronics Limited reported a 95% year-on-year surge in net profit to ₹33.31 crore for the quarter ended June 30, 2026 (Q1FY27), significantly outpacing the previous year’s ₹17.07 crore. The growth was underpinned by a 43% rise in revenue from operations to ₹309.77 crore, driven largely by robust demand in its core Mobility segment. This performance marks the company’s first standalone quarter as a publicly listed entity following its Initial Public Offering (IPO) and listing on March 11, 2026.

The Board of Directors approved the unaudited financial results during a meeting held on July 28, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors, B S R & Co. LLP, issued an unqualified limited review report on the financial statements. The figures for the preceding quarter ended March 31, 2026, represent balancing figures between audited full-year data and published nine-month audited information.

Financial Performance Overview

Total income reached ₹310.63 crore, up from ₹219.96 crore in Q1FY25. While cost of materials consumed increased to ₹200.20 crore from ₹142.97 crore, reflecting higher production volumes, overall efficiency improved. Profit before tax stood at ₹41.34 crore, compared to ₹30.17 crore in the corresponding period last year. Tax expense decreased to ₹8.03 crore from ₹13.10 crore, aided by a reversal of excess tax provisions amounting to ₹2.98 crore.

Earnings per share (basic) rose to ₹7.54 from ₹4.02 in the previous year. Diluted EPS was ₹7.49, compared to ₹3.93 in Q1FY26.

Segment-wise Analysis

The Mobility segment remained the primary growth engine, contributing ₹281.04 crore to revenue, a 53.4% increase from ₹183.26 crore in Q1FY26. Segment results for Mobility jumped 45.6% to ₹39.09 crore. In contrast, the Industrial segment saw a slight revenue decline to ₹28.73 crore from ₹34.10 crore, with segment results falling to ₹3.96 crore from ₹4.84 crore.

Total assets expanded significantly to ₹943.06 crore from ₹552.18 crore in Q1FY26, reflecting capital deployment and operational scaling. Total liabilities stood at ₹449.76 crore, up from ₹229.42 crore.

What the Numbers Show

The disproportionate rise in net profit (95%) relative to revenue growth (43%) indicates improved operating leverage and favorable tax adjustments. The ₹2.98 crore tax provision reversal directly boosted bottom-line results, suggesting prior conservative provisioning. Additionally, the Mobility segment’s asset base grew to ₹835.56 crore from ₹439.16 crore, nearly doubling, which aligns with the revenue surge and suggests aggressive capacity expansion or working capital buildup in this high-growth vertical.

Trailing Twelve Months and Efficiency Metrics

For the trailing twelve months (TTM) ended Q1FY27, revenue from operations reached ₹1,151 crore, a 57% year-on-year increase. EBITDA for the period stood at ₹237 crore, representing an EBITDA margin of 20.6%, up from 19.4% in TTM Q1FY26. Net profit for the TTM period was ₹120 crore, marking a 138% year-on-year growth.

Return on Capital Employed (RoCE) improved significantly to 42% in TTM Q1FY27, up from 37% in the previous year and 17% two years ago. This trajectory highlights enhanced capital efficiency as the company scales its operations.

FY27 Outlook and Risks

Management highlighted key growth drivers for FY27, including the introduction of SEDEMAC ISG ECUs on variants of three popular motorcycle models from top OEMs. Two launches are expected in Q1FY27, with one production already underway, and a third launch anticipated in Q4FY27. Additionally, the company expects a ramp-up in E2W MCUs and ISG ECUs for export three-wheelers.

However, management noted potential dampeners, including tightening in the semi-conductor supply chain and commodity price inflation, which led to a rise in raw material costs and mild pressure on EBITDA margins in Q1FY27. Despite this, the company expects EBITDA margins to hold or improve for the rest of FY27. Reports of a strong El Nino effect pose potential risks to Indian two-wheeler and US home-standby generator markets, though no adverse effects have been observed so far.

Sedemac Mechatronics Limited has initiated a postal ballot process to seek shareholder ratification for two employee stock option schemes, following the company's recent listing on the stock exchanges. The resolutions concern the SEDEMAC Employee Stock Option Plan 2014 and the SEDEMAC Mechatronics Employee Stock Option Scheme 2025. The company requires member approval to comply with Securities and Exchange Board of India (SEBI) regulations regarding fresh grants of options post-listing.

The Board of Directors approved the proposals on July 16, 2026, subject to shareholder consent. The SEDEMAC Employee Stock Option Plan 2014 seeks ratification to authorize the grant of up to 23,44,500 options, exercisable into equity shares of ₹10 each. As of July 16, 2026, 22,23,000 options have been granted under this plan, leaving 1,21,500 options available for further grants.

The second resolution targets the SEDEMAC Mechatronics Employee Stock Option Scheme 2025, which aims to grant up to 9,75,000 options. Under this scheme, 2,44,500 options have been granted as of July 2026, with 7,30,500 options remaining available. Both schemes are administered by the Nomination and Remuneration Committee.

Voting Schedule and Process

The remote e-voting facility is available from 9:00 a.m. IST on Sunday, July 19, 2026, until 5:00 p.m. IST on Monday, August 17, 2026. The company has engaged MUFG Intime India Private Limited to facilitate the e-voting process. Shareholders whose names appear in the Register of Members or Register of Beneficial Owners as of the cut-off date, Friday, July 10, 2026, are eligible to vote.

The results of the postal ballot will be declared on or before August 19, 2026, and subsequently communicated to the BSE Limited and National Stock Exchange of India Limited. The notice has been dispatched to members electronically in compliance with relevant circulars issued by the Ministry of Corporate Affairs and SEBI. Newspaper advertisements regarding the postal ballot notice were published in Financial Express (All editions) and Loksatta (Pune edition) on Saturday, July 18, 2026.