Wardwizard Innovations & Mobility Limited , a company listed on the BSE (Scrip Code: 538970), has recently completed a rights issue that has resulted in a significant change in its shareholding structure. The company's promoters, including Yatin Sanjay Gupte, Wardwizard Solutions India Private Limited, and Garuda Mart India Private Limited, have reported a decrease in their equity shareholding percentages following the allotment of fully paid-up equity shares to public shareholders.

Impact on Share Capital

The rights issue has led to a substantial increase in the company's total equity share capital:

This expansion in the share capital represents an increase of approximately 15.33% in the total number of outstanding shares.

Regulatory Compliance

In compliance with Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, the promoters have filed the necessary disclosures reporting the change in their shareholding. These disclosures were submitted to both the BSE Limited and the Board of Directors of Wardwizard Innovations & Mobility Limited.

Promoter Actions

Yatin Sanjay Gupte, a key promoter of the company, personally filed a declaration detailing the decrease in his equity shareholding percentage. Similarly, Wardwizard Solutions India Private Limited, another promoter entity, submitted its disclosure regarding the reduction in its shareholding stake.

Implications

The dilution of promoter shareholding as a result of the rights issue indicates an expansion of the company's public float. This could potentially lead to:

1. Increased liquidity in the stock
2. A more diverse shareholder base
3. Possible changes in the company's governance structure

It's important to note that while the promoters' percentage stake has decreased, this is a result of the expansion of the overall share capital rather than a sale of shares by the promoters.

Investors and market participants are advised to take note of this change in the company's capital structure and its potential implications for the stock's trading dynamics and future corporate actions.

The company's management has not provided any commentary on the strategic implications of this change in shareholding structure. Stakeholders may want to watch for any future announcements or disclosures that might shed light on the company's plans following this capital expansion.

Wardwizard Innovations & Mobility Limited , a leading manufacturer of electric vehicles under the brands 'Joy e-bike' and 'Joy e-rik', has reported a turnaround in its financial performance for the second quarter of fiscal year 2026, despite facing challenges in the Indian EV sector.

Q2 FY26 Financial Highlights

The company's consolidated financial results for Q2 FY26 show:

Despite a 40.86% year-on-year decline in total revenues to ₹344.92 million, Wardwizard Innovations has managed to turn profitable. The company reported a consolidated profit after tax of ₹1.44 million, compared to a loss of ₹62.16 million in the same quarter last year. This represents a significant improvement in profitability, with the PAT margin increasing by 1108 basis points.

The EBITDA for Q2 FY26 stood at ₹61.08 million, a substantial improvement from the negative EBITDA of ₹16.42 million in Q2 FY25. The EBITDA margin expanded to 17.71%, up by 2053 basis points year-on-year.

Management Commentary

Mr. Yatin Gupte, Chairman & Managing Director of Wardwizard Innovations & Mobility Ltd., commented on the Q2 performance: "We delivered stronger profitability in Q2 FY'26, with EBITDA improving to ₹61.08 million from a loss last year and PAT turning positive. This improvement reflects our disciplined cost controls, better operational efficiencies, and focus on fleet-driven demand."

He added, "While the quarter remained challenging for the Indian EV sector, with subdued two-wheeler and three-wheeler demand, we continued to strengthen our foundation through key partnerships and technology upgrades."

Strategic Developments

Fleet Operations Expansion

The company has expanded its presence into fleet operations and last-mile delivery mobility, with active deployments across key cities including Hyderabad, Kolkata, Ahmedabad, and Pune.

MoU with XiCon International

Wardwizard has signed a Memorandum of Understanding for the lease of 7,500 electric scooters, to be deployed in metropolitan cities such as Mumbai, Ahmedabad, Delhi, and Pune by FY 2026-27.

Saudi Arabia Joint Venture

In a significant move, the company has approved the establishment of a joint venture in Saudi Arabia. The Board of Directors has given the green light for:

• Setting up an Electric Vehicle (EV) Assembly plant in Saudi Arabia
• Establishing a state-of-the-art EV Battery manufacturing facility
• Serving both domestic and international markets

The joint venture will be formed with Royal Highness Abdulaziz Bin Turki Bin Talal Abdulaziz Al Saud, who will hold a 51% equity stake, while Wardwizard Innovations & Mobility Limited will hold the remaining 49%.

Outlook

While facing headwinds in the Indian EV market, Wardwizard Innovations appears to be focusing on operational efficiency and strategic expansion. The company's ability to turn profitable despite revenue decline suggests effective cost management. The new joint venture in Saudi Arabia could potentially open up new markets and growth opportunities for the company in the Middle East region.

Investors and market watchers will likely keep a close eye on how these strategic moves translate into financial performance in the coming quarters, especially given the current challenges in the EV sector.