SMT Engineering Ltd has extended a corporate guarantee to its wholly owned subsidiary, Sai Machine Tools Private Limited, to facilitate enhanced working capital facilities from Punjab National Bank. The guarantee covers the increase in the subsidiary's Cash Credit limit from Rs 31.25 Crores to Rs 45 Crores. This strategic financial move aims to bolster the liquidity position of the subsidiary, which forms part of the consolidated group.

The board of smt engineering approved the extension of the corporate guarantee as per Regulation 30 of the Listing Regulations. The filing confirms that none of the promoters or members of the promoter group or directors have any interest in this transaction, which was conducted at an arm's length basis. However, Promoter and Director Mr. Ashok Jaiswal extended his land bearing Survey no. 27/1, measuring 0.759 hectare at village Brahman Piplya, Tehsil Sanwer, District Indore, to secure the said working capital facilities.

The revised credit facilities sanctioned to Sai Machine Tools Private Limited include a mix of short-term and long-term borrowing instruments. The total exposure under the revised facility structure amounts to Rs 55.04 Crores. The breakdown of these facilities includes a Cash Credit limit of Rs 45.00 Crores, Term Loans amounting to Rs 7.54 Crores, and a Bank Guarantee (BG) Limit of Rs 2.50 Crores.

Credit Facilities Breakdown

The company stated that the guarantee has been provided on behalf of a Wholly Owned Subsidiary which is part of the consolidated group. Consequently, there is no material impact on the financials of SMT Engineering Ltd other than the disclosure of this guarantee as a Contingent Liability in the financial statements. The disclosure was made in compliance with SEBI Master Circular no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

SMT Engineering Limited has reported a significant surge in its financial performance for the financial year ended March 31, 2026. The company's consolidated net profit after tax rose to ₹2,308.02 lakh for FY26, a substantial increase from ₹234.52 lakh in the previous year. For the quarter ended March 31, 2026, the consolidated net profit after tax stood at ₹1,205.85 lakh. On a standalone basis, the net profit after tax for the year was ₹49.77 lakh, compared to ₹18.08 lakh in FY25.

The Board of Directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, at its meeting held on May 28, 2026. The total income from operations for the consolidated entity for FY26 was ₹16,272.78 lakh, up from ₹2,110.02 lakh in the previous year. Standalone total income from operations for the year was ₹190.15 lakh.

Financial Performance

The following table summarizes the audited financial results for SMT Engineering Limited:

The company's paid-up equity share capital as of March 31, 2026, was ₹1,672.38 lakh. The reserves, excluding revaluation reserve, stood at ₹7,388.56 lakh on a standalone basis and ₹10,247.27 lakh on a consolidated basis.

Regulatory Compliance

The audited financial results were filed with the stock exchanges under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The detailed results are available on the BSE website and the company's official website. The trading window for dealing in the company's securities, which was closed from May 24, 2026, in compliance with SEBI regulations, will reopen 48 hours after the declaration of the board meeting outcome.