Systematic Industries has completed its board meeting on September 8, 2026, approving the acquisition of 100% stake in Wire Brigade Industries Private Limited (WBIPL) and a preferential equity issue aggregating up to ₹33.94 crore.

The capital raise involves issuing up to 14,88,600 equity shares at an issue price of ₹228 per share to promoter group entities and non-promoters. The transaction includes a share swap component for the acquisition and cash subscriptions from institutional and individual investors.

Acquisition of Wire Brigade Industries

The board approved acquiring 10,000 equity shares of WBIPL from Veritas Industries Private Limited (VIPL), a promoter group entity. The purchase price is ₹21,500 per share, totaling approximately ₹2.15 crore.

The consideration is structured as follows:

• Share Swap: For 9,996 shares, Systematic will allot 9,42,600 new equity shares to VIPL on a preferential basis.
• Cash Payment: A cash payment of ₹86,000 will be made for the remaining four shares.

WBIPL, incorporated in December 2020, manufactures steel, MS, and annealed wires. Its provisional turnover for FY26 stood at ₹10,974.76 lakh, with an EBITA of ₹592.70 lakh and PAT of ₹214.38 lakh as on March 31, 2026. The acquisition aims to consolidate operations within the listed entity and expand manufacturing presence in Eastern India through WBIPL’s Howrah facility.

Preferential Issue Details

The company plans to raise funds from 21 allottees, including VIPL, Vijit Global Securities Private Limited, Vijit Growth Fund, and several individual investors. The issue price of ₹228 includes a premium of ₹218 per share.

The remaining allottees include Mili Emerging Equities Fund, Khatod Divyank Rameshwarlal, Hansaben Chatarlal Shah, Bachh Raj Nahar, Rahul Gadia Securities Private Limited, Mayuri Shripal Vora, Gaurav Paliwal, Arpit Agrawal HUF, Arpit Ashok Kumar Jain, Shubham Tibrewal, G. Santosh kumar, Parag Rathi, Shailesh Shrinivas Rathi, Sunrise Growth LLP, and Ruchas Ventures.

Expanded Manufacturing Footprint

The acquisition follows the recent addition of a 48,000 MT per annum GI wire manufacturing facility at Siltara, Chhattisgarh. With Wire Brigade’s 24,000 MT capacity, Systematic’s total manufacturing capacity is expected to rise significantly.

This expansion provides a strategically located manufacturing base in Eastern India, complementing the company’s pan-India network.

Regulatory Approvals and Timeline

The transaction requires shareholder approval via an Extra-Ordinary General Meeting (EoGM) scheduled for October 1, 2026. The relevant date for the preferential issue is fixed as September 1, 2026. The cut-off date for EGM notice dispatch is September 4, 2026, with voting eligibility determined as on September 25, 2026.

Remote e-voting will run from September 28 to September 30, 2026. CS Murtuza Mandor has been appointed as the scrutinizer. The trading window for designated persons remains closed until 48 hours after the board meeting concluded, reopening on September 11, 2026.

Systematic Industries has scheduled its 26th Annual General Meeting (AGM) for Tuesday, September 22, 2026. The meeting will be conducted via video conferencing or other audio-visual means (OAVM) at 1:30 pm. Remote e-voting will commence on Saturday, September 19, 2026, at 9:00 am and end on Monday, September 21, 2026, at 5:00 pm.

Financial Performance

The company reported a 16% year-on-year increase in net profit to ₹210.2 crore for the financial year ended March 31, 2026 (FY26). The Mumbai-based steel wire and cable manufacturer posted revenue from operations of ₹5,525.1 crore, marking a 24% growth over the previous fiscal year.

Financial Highlights

The company's top-line expansion was supported by sustained demand across its core segments, including power transmission and infrastructure. Revenue grew from ₹4,465.1 crore in FY25 to ₹5,525.1 crore in FY26. This growth translated into a profit before tax of ₹281.2 crore, up from ₹244.9 crore in the prior year.

Despite the revenue surge, EBITDA margins contracted by 91 basis points to 7.23% from 8.14% in FY25. The company attributed this margin compression to the evolving product mix and higher input costs, while emphasizing that new-age products like Optical Ground Wires (OPGW) are margin-accretive in the long term.

What the Numbers Show

A significant portion of the company's profit growth was driven by operational efficiency rather than just volume. While revenue grew by 24%, finance costs declined by 25% to ₹60.2 crore from ₹80.2 crore in FY25. This reduction in interest expense contributed directly to the bottom-line improvement, highlighting the impact of the company's deleveraging strategy.

Balance Sheet Strength

Systematic Industries achieved net-debt-free status as of March 31, 2026, having utilized proceeds from its initial public offering (IPO) to repay borrowings. The IPO raised ₹1,077.96 crore, with ₹950 crore specifically allocated for debt repayment. Consequently, the debt-equity ratio improved dramatically to 0.05 from 1.22 in FY25. Cash and cash equivalents stood at ₹129.4 crore, providing liquidity for future capex and working capital needs.

Strategic Developments

The company secured its first Engineering, Procurement, and Construction (EPC) contract from Power Grid Corporation of India Limited (PGCIL) for the supply and installation of OPGW cables. This milestone positions Systematic Industries to participate in upcoming OPGW tenders. Additionally, the firm bagged contracts for OPGW cable supply in Odisha and Andhra Pradesh and initiated exports of OPGW cables at the start of FY27.

AGM Details

Shareholders holding shares as on the cut-off date of Tuesday, September 15, 2026, are eligible to vote. Key agenda items include the re-appointment of Whole-time Director Vikas Navin Hegde and the ratification of material related-party transactions with Wire Brigade Industries Private Limited and Veritas Industries Private Limited. Shareholders will also vote on the appointment of Gunjan Saboo as an Independent Director.

In compliance with SEBI Listing Regulations, the notice for the AGM and the Integrated Annual Report for FY25-26 have been sent electronically to shareholders with registered email addresses. Shareholders without registered emails were provided a weblink to access the documents on the company’s website. The remote e-voting facility is provided by National Securities Depository Limited (NSDL).

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE1KLZ01011/55559548-6854-459d-8aef-068e5183e1e9.pdf