H.M. Electro Mech , a company listed on the BSE SME platform, has announced its unaudited financial results for the half year ended September 30, 2025. The company's Board of Directors approved these results at a meeting held on November 13, 2025.

Financial Highlights

The company has shown significant growth in its financial performance compared to the previous year. Here are the key highlights:

Operational Performance

The company has demonstrated strong top-line growth, with revenue from operations increasing by 67.9% year-over-year. This substantial growth indicates a significant expansion in the company's business activities and market presence.

Profitability

Despite the impressive revenue growth, the company's profitability metrics show a decline compared to the same period last year:

• EBITDA decreased by 28.4%, suggesting increased operational costs or pricing pressures.
• PBT and PAT declined by 26.8% and 20.4% respectively, indicating challenges in maintaining profit margins amidst rapid growth.

Balance Sheet Strength

As of September 30, 2025, H.M. Electro Mech's financial position remains solid:

• Total assets increased to ₹10,260.16 lakhs from ₹9,735.67 lakhs as of March 31, 2025.
• Shareholders' funds rose to ₹6,782.92 lakhs from ₹6,546.03 lakhs, indicating retained earnings and improved net worth.

Cash Flow and Liquidity

The company's cash flow statement reveals:

• Net cash used in operating activities: ₹(544.13) lakhs
• Net cash from investing activities: ₹566.79 lakhs
• Net cash used in financing activities: ₹(235.50) lakhs

The closing balance of cash and cash equivalents stood at ₹30.99 lakhs, down from ₹243.83 lakhs at the beginning of the period, suggesting a need for careful liquidity management.

Management Commentary

Dipak Palya, Chairman and Managing Director (DIN: 02188199), stated, "We are pleased with our strong revenue growth in the first half of FY2026. While we face some challenges in maintaining our profit margins due to rapid expansion, we are confident that our strategic initiatives will drive long-term value for our shareholders."

Auditor's Review

SVJK and Associates, the company's statutory auditors, conducted a limited review of the financial results. They reported that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices and policies.

Future Outlook

With its robust revenue growth and strong balance sheet, H.M. Electro Mech appears well-positioned for future expansion. However, the company may need to focus on cost management and operational efficiency to improve its profitability metrics in the coming quarters.

Investors and stakeholders will be watching closely to see how the company balances its growth trajectory with profitability in the second half of the fiscal year.

Note: This article is based on the unaudited financial results of H.M. Electro Mech for the half year ended September 30, 2025, as approved by the company's Board of Directors and reviewed by its statutory auditors.

H.M. Electro Mech has announced a significant new contract, marking a notable development in the company's business operations. The company has secured a work order worth Rs. 15.75 crores from Twinsag Enterprise LLP, demonstrating its growing presence in the renewable energy sector.

Contract Details

The contract involves a comprehensive scope of work for a solar power project:

• Design, engineering, procurement, supply, erection, testing, and commissioning of a 15 MW (AC) Solar PV project
• To be executed on a turnkey basis
• Includes an initial operations and maintenance period of three years

Project Specifics

Company Disclosure

In compliance with regulatory requirements, H.M. Electro Mech has made the following disclosures:

1. The contract does not fall under related party transactions.
2. Neither the promoters nor any group companies have any interest in Twinsag Enterprise LLP, the entity awarding the contract.

Market Implications

This contract represents a significant opportunity for H.M. Electro Mech to strengthen its position in the solar energy sector. The substantial value of the project and its multi-year duration suggest potential for steady revenue generation and operational growth for the company in the coming years.

The announcement, made in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, underscores the company's commitment to transparency and regulatory compliance.

As the renewable energy sector continues to grow in India, contracts of this nature may indicate increasing opportunities for companies like H.M. Electro Mech in the solar power infrastructure domain.