Hind Rectifiers Limited has announced a postal ballot notice seeking shareholder approval for the issuance of bonus shares in a 1:1 ratio. The company's board of directors approved and recommended this proposal at their meeting held on February 11, 2026.

Bonus Share Issue Details

The company proposes to issue bonus equity shares by capitalizing funds from its securities premium account. The key parameters of the bonus issue are structured as follows:

The bonus shares will be issued to existing shareholders whose names appear in the Register of Members or Register of Beneficial Owners maintained by the Depositories as on the cut-off date.

E-Voting Schedule and Process

The company has engaged NSDL to provide e-voting facilities for all shareholders. The voting timeline has been established with specific dates for the entire process:

Shareholders can cast their votes electronically through the NSDL platform during the specified period. The postal ballot notice is being sent only through electronic mode to shareholders whose email addresses are registered with the company or depositories.

Corporate Governance and Compliance

GMJ & Associates, Practicing Company Secretaries, has been appointed as the scrutinizer for conducting the postal ballot process. The appointment ensures fair and transparent conduct of the voting process. The scrutinizer will submit their report to the Chairman after completion of scrutiny.

The company has confirmed compliance with various regulatory requirements, including no defaults in payment of statutory dues, fixed deposits, or debt securities. Additionally, none of the promoters or directors is a fugitive economic offender, and the bonus issue is not in lieu of dividend.

Share Capital Structure

The current share capital structure provides adequate headroom for the proposed bonus issue:

The proposed bonus issue will remain within the limits of authorized share capital, eliminating the need for any amendment to the Capital Clause of the Memorandum of Association.

Implementation Timeline and Regulatory Compliance

According to SEBI ICDR Regulations, the bonus issue must be implemented within two months from February 11, 2026, subject to receiving shareholders' approval. The new bonus shares will be allotted in dematerialized form only and will rank pari passu with existing equity shares.

For shareholders holding physical shares without registered demat account details, the bonus shares will be credited to the company's Demat Suspense Account until proper documentation is provided. The results of the postal ballot will be announced within two working days and communicated to stock exchanges, depositories, and the registrar.

Hind Rectifiers Limited conducted its Q3FY26 earnings conference call on February 12, 2026, providing comprehensive insights into the company's financial performance and strategic developments. The management team, led by Chairman and Managing Director Suramya Nevatia, discussed the quarter's achievements and outlined future growth prospects.

Strong Financial Performance

The company reported impressive consolidated financial results for Q3FY26, demonstrating robust growth across key metrics. Consolidated revenue from operations reached ₹277.40 crores, marking a substantial 64.20% year-on-year growth. The nine-month performance was equally strong, with consolidated revenue growing 52.90% to ₹719.30 crores compared to ₹470.30 crores in the previous year.

The company maintained a healthy order book of ₹1,103 crores as of December 31, 2025, reflecting sustained demand momentum across key product lines from Indian Railways and leading OEM customers.

Propulsion System Milestone

A significant development during the quarter was the commencement of propulsion system trials at Western Railway. The trials are expected to complete the 50,000-kilometer milestone within three to four months. The company currently holds propulsion system orders worth approximately ₹50 crores for roughly 40 systems, with expectations of additional orders following successful trial completion.

Strategic Initiatives and Leadership

The company strengthened its leadership team with the appointment of Douglas Bailey as Global CEO, bringing over three decades of experience in semiconductor and power electronics industries. His expertise in Wide Bandgap Technologies such as GaN and SiC adds significant depth to the management team.

The Board approved an investment of ₹90 lakhs in wholly-owned subsidiary Coincade Studios Private Limited to strengthen its capital base and support business expansion plans. Additionally, the company granted 1,00,000 employee stock options under ESOP 2018 scheme at ₹800 per option.

Operational Developments

The backward integration project for specialized copper conductors at the Sinnar facility continued to stabilize and scale up. The company successfully commenced deployment of in-house manufactured conductors in transformers supplied to Indian Railways. Management expects this segment to deliver positive results from Q1 FY27 onwards, with full benefits materializing from Q2 FY27.

Growth Outlook and Market Opportunities

Management expressed confidence in maintaining 30% year-on-year growth, driven by existing business and product lines. The union budget's record capital expenditure allocation of ₹2.93 lakh crores for Indian Railways, along with plans for 1,700 electric locomotives in the next year, provides strong demand visibility.

The company is actively developing approximately 40 products across various categories, including completely new products, upgrades, and engineering improvements. Most products are focused on railways, with some targeting non-railway sectors including defense and electronics.

Margin Recovery Strategy

While EBITDA margins moderated by 120 basis points year-on-year due to expansion investments and raw material cost increases, management expects margin recovery from Q4 FY26. The real upside is anticipated from Q2 FY27 onwards when the CTC factory reaches full operational capacity, improving cost efficiencies and supply chain reliability.