Lakshmi Electrical Control Systems Limited (LECS) has announced its financial results for the second quarter ended September 30, 2025, revealing a mixed performance with revenue growth but a decline in profitability.

Revenue Growth

The company reported revenue from operations of ₹5,832.43 lakhs for Q2 FY2026, marking an increase from ₹5,342.13 lakhs in the corresponding quarter of the previous year. This represents a year-on-year growth of 9.18%. For the half-year period, revenue grew to ₹11,071.92 lakhs from ₹10,484.06 lakhs, showing a 5.61% increase.

Profit Decline

Despite the revenue growth, LECS experienced a significant drop in profitability. The profit for Q2 FY2026 declined to ₹48.26 lakhs, compared to ₹205.30 lakhs in Q2 FY2025, representing a substantial decrease of 76.49%. For the half-year period, profit fell sharply to ₹61.78 lakhs from ₹347.00 lakhs in the previous year, a decline of 82.20%.

Segment Performance

LECS operates across three segments: electricals, plastics, and wind power generation. The segment-wise performance for Q2 FY2026 is as follows:

The electricals segment remains the largest contributor to the company's revenue, while the plastics segment reported a loss for the quarter.

Financial Position

As of September 30, 2025, LECS reported total assets of ₹35,295.52 lakhs, with an equity base of ₹27,428.73 lakhs. The company's financial position appears stable, with a low debt-to-equity ratio.

Management Commentary

Nethra J.S. Kumar, Chairperson and Managing Director of LECS, stated, "While we are pleased with our revenue growth this quarter, we acknowledge the challenges that have impacted our profitability. We are implementing measures to improve operational efficiency and expect to see positive results in the coming quarters."

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on November 3, 2025. The company's statutory auditors have carried out a limited review of these results.

Investors and stakeholders should note that these results are unaudited and subject to limited review by the company's statutory auditors.

Lakshmi Electrical Control Systems Limited (LECS) held its 44th Annual General Meeting (AGM) on August 25, 2025, where shareholders approved several key changes to the company's board and management structure.

Board Appointments and Re-appointments

New Appointments

• Sri. Sudesh Koti Reddy appointed as Non-executive Independent Director for a five-year term, effective June 5, 2025.

  • Koti Reddy, 62, brings 37 years of experience in engineering and manufacturing.
  • Previously served as Managing Director of Sucharita Precision Gears Private Limited until April 2025.

• Sri. Vedhanth Senthilkumar's appointment as Non-executive Non-Independent Director regularized.

  • Holds B.Eng. (Honors) in Manufacturing and Mechanical Engineering from the University of Warwick.
  • Experience with TVS Group, Tata Motors, and LMW Limited.

Re-appointment

• Sri. Arjun Balu re-appointed as Independent Director for a second five-year term, beginning May 28, 2026.
  • Business management graduate with over 25 years of experience.
  • Previously served as Joint Managing Director of Sri Balasubramania Mills Limited until 2016.

Board Retirement

Sri. Sanjay Jayavarthanavelu retired from the board at the conclusion of the AGM. The vacancy created by his retirement will not be filled at this time.

Auditor Appointment

M/s. MDS & Associates LLP appointed as Secretarial Auditors for five consecutive financial years from 2025-26 to 2030-31.

Financial Decisions

• Dividend declared: Rs. 4.00 per equity share (40%) for the financial year 2024-2025.
• Total dividend amount: Rs. 98.32 lakhs, subject to tax deductions.

Related Party Transactions

Shareholders approved material related party transactions:

These transactions are approved for the period until the next AGM.

The board changes and strategic decisions reflect LECS's commitment to strengthening its governance structure and positioning itself for future growth in the electrical control systems sector.