Elpro International Limited has announced its financial results for the second quarter ended September 30, 2025, revealing a mixed performance with a significant revenue decline but improved profitability margins.

Revenue and Profit

The company's consolidated net profit for Q2 fell to ₹112.20 million from ₹322.00 million in the same quarter last year. Total revenue declined sharply to ₹535.00 million from ₹2.06 billion year-over-year.

Margin Improvement

Despite the lower revenue and profitability, Elpro International saw a substantial expansion in its EBITDA margin, which increased to 41.87% from 13.64% in the corresponding quarter of the previous year. The absolute EBITDA figure stood at ₹224.00 million compared to ₹282.00 million in Q2 of the previous fiscal year.

Segment Performance

The company's financial results show varied performance across its business segments:

Balance Sheet Highlights

As of September 30, 2025:

The company's board of directors approved these unaudited financial results at their meeting held on November 14, 2025.

Investors and analysts may note that while the company faced challenges in terms of revenue generation, its ability to improve margins significantly could be seen as a positive sign for operational efficiency.

Elpro International Limited has announced plans to seek shareholder approval for related party transactions totaling Rs 355 crores through a postal ballot. The company aims to provide interest-bearing inter-corporate deposits (ICDs), loans, or guarantees to four related entities over a one-year period.

Proposed Transactions

The company has outlined the following proposed transactions:

Key Terms and Conditions

• Interest Rate: 11% per annum for loans and ICDs
• Commission: 0.50% for guarantees
• Tenure: One year
• Security: Unsecured

Voting Process

• E-voting Period: October 19 to November 17, 2025
• Cut-off Date: October 10, 2025 (for determining eligible shareholders)
• Scrutinizer: Mrs. Jayshree A. Lalpuria appointed to oversee the postal ballot process

Regulatory Compliance

The proposed transactions exceed 10% of Elpro International's annual consolidated turnover, necessitating shareholder approval under SEBI regulations. The company has stated that these transactions are aimed at deploying funds efficiently and will be conducted at arm's length.

Management Commentary

While specific management quotes were not provided, the company's rationale for these transactions appears to be focused on efficient fund deployment and supporting the business activities of related entities.

Investor Considerations

Shareholders should note that these transactions represent a significant portion of the company's financial activities. The interest rates and commission structures are stated to be in line with prevailing market standards, which may provide some assurance of fair dealing.

As Elpro International moves forward with this proposal, investors will need to carefully evaluate the potential benefits and risks associated with these related party transactions before casting their votes.