Systematic Industries Limited reported a 16.4% YoY increase in net profit to ₹210 Mn for FY26, supported by robust demand in power transmission and telecom sectors. Total revenue expanded 23.9% YoY to ₹5,563 Mn, reflecting the company's strategic pivot toward high-value infrastructure products.

The company disclosed these figures in its investor presentation at the Arihant Capital Bharat Connect Conference on September 25, 2026. While revenue growth was strong, EBITDA margins contracted by 94 bps to 7.3%, primarily due to rising input costs and operational expenses. The company achieved net-debt-free status as on March 31, 2026, strengthening its balance sheet for future capital expenditure.

Financial Performance Overview

The company's top-line growth was outpaced by cost increases, leading to margin compression despite higher volumes. Employee benefit expenses rose 20.7% YoY, and other expenses increased 11.8% YoY, contributing to the decline in operating profitability.

Strategic Expansion and Order Wins

Systematic Industries has diversified its portfolio beyond legacy steel wires into Optical Ground Wire (OPGW) and Optical Fibre Cable (OFC). The company secured its first EPC contract from Power Grid Corporation of India Limited (PGCIL) for the 400 KV Agra–Kumher section, valued at approximately ₹824 Mn. This milestone qualifies the company for participation in upcoming OPGW tenders estimated at ₹10,000 Mn in FY27.

Additionally, the company received an order worth over ₹100 Mn from Indian Railways for armoured optical fibre cables. These wins underscore the company's technical capabilities and approved supplier status with key government entities like PGCIL, RDSO, and DRDO.

Capacity Augmentation and Market Position

The company has scaled its installed steel-wire capacity to 1,72,000 MTPA through acquisitions and organic growth. A new capacity of 72,000 MTPA is scheduled to become operational from November 2026. Systematic Industries is currently India's third-largest steel wires and cables manufacturer and the only integrated OPGW player in the country.

What the Numbers Show

A divergence exists between revenue growth and return metrics. While revenue grew 23.9% YoY, Return on Capital Employed (ROCE) declined from 30.0% in FY25 to 16.4% in FY26. This drop correlates with the significant increase in equity base due to the listing and capital infusion, which rose from ₹811 Mn in FY25 to ₹2,014 Mn in FY26. The dilution of returns suggests that while the asset base is expanding rapidly, the immediate profit generation has not yet caught up with the enlarged capital structure.

Systematic Industries has disclosed the voting results for its 26th Annual General Meeting held on September 22, 2026. All resolutions proposed in the notice of the meeting were duly transacted and approved by the members with the requisite majority.

The meeting was conducted through Video Conferencing/Other Audio Visual Means (VC/OAVM) in compliance with Ministry of Corporate Affairs and SEBI circulars. Shareholders utilized both Remote E-voting facilities and E-voting at the AGM to cast their votes. The scrutinizer’s report dated September 23, 2026, confirmed the validity of the votes cast.

Voting outcomes for key resolutions

The company reported that for Item No. 1 (Adoption of Standalone Audited Financial Statements for FY26) and Item No. 2 (Re-appointment of Vikas Navin Hegde), the promoter and promoter group held 16,396,842 shares and voted entirely in favour. Public non-institutional shareholders also voted unanimously in favour, while public institutions did not participate in the voting process for these items.

For Item No. 3 (Ratification of Cost Auditor remuneration) and Item No. 6 (Appointment of Gunjan Saboo as Independent Director), the voting pattern remained consistent with high promoter participation and zero votes against.

Related party transaction approvals

Two ordinary resolutions regarding material related party transactions received specific attention due to promoter abstention:

1. Item No. 4: Approval of material related party transactions with M/s Wire Brigade Industries Private Limited.
2. Item No. 5: Approval of material related party transaction with M/s Veritas Industries Private Limited.

For these two items, the Promoter and Promoter Group did not vote, citing interest in the resolution. Consequently, the valid votes polled consisted solely of public non-institutional shareholders (179,900 votes), all of which were cast in favour. No votes were recorded against these resolutions.

Meeting details and attendance

The meeting was deemed to be held at the registered office located at Nirmal Corporate Centre, Mumbai. All existing directors were present. Committee chairpersons from the Nomination and Remuneration, Audit, Stakeholders Relationship, and Corporate Social Responsibility committees attended. Representatives from the statutory and secretarial auditors were also present.

Chief Financial Officer Dwarika Prasad Agarwal and Company Secretary Dimple Lalwani participated throughout the meeting via video conferencing. The proceedings were uploaded to the company website in accordance with Regulation 30 of the SEBI Listing Regulations.