Smarten Power Systems Limited has announced its audited financial results for FY26, showcasing strong revenue growth of 20.3% despite facing multiple operational headwinds. The board meeting held on April 28, 2026, approved comprehensive financial statements and made key appointments for the upcoming fiscal year.

Financial Performance Overview

The company delivered robust revenue growth with total income from operations reaching ₹242.66 crore in FY26, representing a significant increase of 20.3% over the previous year's ₹201.75 crore. However, profitability was impacted by external cost pressures and strategic investments, resulting in a profit after tax of ₹8.80 crore for the full year.

Operational Challenges and Strategic Response

FY26 presented a demanding operating environment with three distinct headwinds. Export revenues declined significantly to ₹22.17 crore from ₹48.50 crore in FY25, primarily due to intensifying competition from low-cost Chinese manufacturers in key overseas markets. The company successfully redirected focus toward the domestic market, leveraging its brand equity and after-sales network to maintain overall turnover.

Raw material costs rose during FY26, driven by elevated global input prices and supply-chain disruptions from geopolitical tensions in the Middle East. The company responded by diversifying its supplier base and building strategic inventory buffers to reduce future exposure.

Capacity Expansion and Investment Impact

Depreciation charges increased substantially from ₹40.84 lakhs in FY25 to ₹78.08 lakhs in FY26, reflecting the commissioning of a new manufacturing facility that resulted in a 4.4x expansion of the company's fixed asset base. Employee benefit expenses increased from ₹14.98 crore to ₹17.67 crore, reflecting both annual increments and deliberate expansion of the Research and Development team, including onboarding 70 employees for battery units.

Strategic Product Development

The company made significant progress in product development, with field trials of Smarten's in-house developed Hybrid Inverter and Li-ION Battery systems commencing in H2 FY26. Management expects trial volumes to ramp materially through H1 FY27, with mass-market availability targeted for H2 FY27. The Li-ION battery segment continued to witness strong market adoption, reflecting a structural shift in customer preferences toward longer-cycle, higher-efficiency energy storage.

Geographic Expansion Success

The company achieved meaningful geographic expansion across multiple domestic markets in H2 FY26. East India, particularly West Bengal and Bihar, emerged as top contributors to domestic revenue. The company successfully entered the Punjab market for the first time, generating revenues of approximately ₹1.80 crore in FY26, with management projecting substantial increases ahead.

Board Appointments and Compliance

The board appointed M/s Nitin Arora & Associates (FRN: 031892N) as internal auditors for FY27, representing a strategic decision to enhance internal audit capabilities. The company submitted all required documentation under Regulation 33 of SEBI Listing Regulations, with statutory auditor M/s Mahesh Yadav & Associates issuing an unmodified audit report. Company Secretary Vandita Tripathi ensured full compliance with disclosure requirements.

Smarten Power Systems has been approved as an authorized distributor for Exide Technologies' energy storage and battery products across India, expanding its product portfolio in the power solutions sector.

Distribution Partnership Details

The approval enables Smarten Power Systems to distribute Exide Technologies' comprehensive range of energy storage and battery products across the Indian market. This partnership provides the company with access to established battery technology solutions that can serve various industrial and commercial applications.

Strategic Business Impact

The distribution agreement positions Smarten Power Systems to capitalize on the growing demand for energy storage solutions in India. By partnering with Exide Technologies, the company gains access to proven battery technologies and energy storage systems that complement its existing power solutions portfolio.

This development allows Smarten Power Systems to offer customers a broader range of energy storage options, potentially strengthening its competitive position in the Indian power systems market. The partnership with Exide Technologies provides the company with established products that have market recognition and technical reliability.

Market Expansion Opportunity

The authorization to distribute Exide Technologies' products represents a strategic move for Smarten Power Systems to expand its market reach in the energy storage segment. The partnership enables the company to serve diverse customer requirements across various sectors that utilize battery and energy storage solutions.

Through this distribution arrangement, Smarten Power Systems can leverage Exide Technologies' product development capabilities while focusing on market penetration and customer service in the Indian market.