Vivid Electromech Limited has approved the acquisition of a 99% stake in the partnership firm Mechtech Infrasolutions for a total consideration of ₹99,00,000. The Board of Directors granted approval for the proposal during its meeting held on May 21, 2026. The transaction involves the acquisition of 99% of the capital contribution and profit and loss sharing ratio of the target entity.

Transaction Details

The acquisition is a related party transaction, as the promoters and promoter group have an interest in Mechtech Infrasolutions. The company confirmed that the deal is being conducted on an arm's length basis. The consideration for the acquisition will be paid in the form of cash capital contribution. The transaction is expected to be completed within seven working days, subject to the completion of customary conditions and receipt of necessary statutory approvals.

Strategic Rationale

Mechtech Infrasolutions is engaged in the trading of electrical products and serves as a Licensed Partner of Siemens Limited. The firm is involved in the manufacture and assembly of SIEPAN 8PU Low Voltage Switchboards, catering to industrial, commercial, and infrastructure sectors. Through this acquisition, Vivid Electromech aims to strengthen its presence in the electrical infrastructure and industrial automation segment. The company intends to leverage the target entity's existing customer relationships and technical capabilities to expand into the value-added manufacturing of LT/HT panels and customized control panels.

Financial Overview of Target

Mechtech Infrasolutions was incorporated on January 5, 2021, and operates domestically. The firm is classified as an SME with an estimated workforce of 20-50 employees. The indicative turnover for the last three financial years shows significant growth.

The acquisition aligns with Vivid Electromech's long-term strategy of forward integration and the expansion of its technology-driven electrical solutions portfolio. No governmental or regulatory approvals are required for the completion of this acquisition.

Vivid Electromech Limited announced its audited financial results for the year ended March 31, 2026, reporting a significant surge in profitability. The company achieved a record revenue of ₹200.14 crore, representing a year-on-year growth of 28.9%. Profit After Tax (PAT) for the fiscal year increased by 61.9% to ₹31.61 crore, compared to ₹19.52 crore in the previous year. The Board of Directors approved the results during a meeting held on May 14, 2026.

Operational Performance

The strong financial performance was driven by robust order execution and a richer product mix. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew by 60.7% to ₹46.16 crore. Consequently, the EBITDA margin expanded by 456 basis points to 23.06% for FY26, up from 18.50% in FY25. Profit Before Tax (PBT) also saw substantial growth, rising 66.2% to ₹43.75 crore.

The following table summarizes the key financial metrics for the period (₹ in Crores):

Strategic Developments and Expansion

FY26 marked a transformational milestone for the company with its successful listing on the NSE SME Emerge platform on April 7, 2026. To support its next phase of growth, Vivid Electromech is establishing a new manufacturing facility at Ambernath, Thane. Spread across approximately 85,800 sq. ft., the facility is expected to nearly triple manufacturing capacity once fully operational. The company targets completing the ramp-up by the end of Q1 FY27.

Financial Position and Outlook

The company deployed ₹22.17 crore in Property, Plant, and Equipment (PPE) during the year, with Capital Work-in-Progress standing at ₹13.37 crore. Net Worth expanded to ₹73.40 crore, resulting in a Return on Equity (RoE) of approximately 43%. Looking ahead, management targets revenue growth of approximately 35–40% in FY27 while maintaining corresponding margins, supported by a healthy order pipeline and increased capacity.