MIRC Electronics , known for its Onida brand of consumer durables, has reported a significant increase in net loss for the first quarter of the fiscal year, alongside announcing plans for a substantial preferential share issue to raise capital.

Financial Performance

The company's financial results for Q1 revealed a notable decline in both revenue and profitability:

MIRC Electronics reported a net loss of 12.49 crore rupees in Q1 FY2026, compared to a loss of 0.44 crore rupees in the same period last year. The company's revenue from operations fell to 140.85 crore rupees from 227.79 crore rupees year-over-year, representing a significant decline of 38.17% in top-line performance.

Operational Highlights

The company faced challenges across various expense categories:

• Cost of raw materials and components consumed decreased to 18.54 crore rupees.
• Employee benefits expense remained relatively stable at 13.73 crore rupees.
• Finance costs increased to 3.47 crore rupees.
• Other expenses decreased to 17.31 crore rupees.

Preferential Share Issue

In a strategic move to strengthen its financial position, MIRC Electronics' Board of Directors has approved the issuance of up to 8,89,49,900 equity shares with a face value of 1 rupee each on a preferential basis. The issue price is set at 16.81 rupees per share, which is in accordance with SEBI regulations.

Key details of the preferential issue include:

• Total number of shares: Up to 8,89,49,900
• Number of investors: 4
• Largest allottee: Authum Investment & Infrastructure Limited, set to receive 7,83,00,000 shares

The preferential issue is subject to shareholder approval at an upcoming Extraordinary General Meeting scheduled for September 6, 2025.

Other Corporate Actions

The company also disclosed other significant corporate actions:

1. Completion of a rights issue, allotting 4,94,89,845 equity shares at 10 rupees per share.
2. Issuance of 6,000 non-convertible debentures worth 60 crore rupees in two tranches.

Management Commentary

Kaval Mirchandani, Managing Director of MIRC Electronics, stated, "While we face challenges in the current market environment, we are taking strategic steps to strengthen our financial position and improve our operational efficiency. The proposed preferential issue will provide us with the necessary capital to navigate these challenging times and position ourselves for future growth."

MIRC Electronics continues to operate in the consumer durables segment, with its operations structured under a single operating segment as per Indian Accounting Standards.

The company's shares will be closely watched by investors as it implements these financial measures and works towards improving its performance in the coming quarters.

MIRC Electronics Limited , the company behind the Onida brand, has completed a significant rights issue, resulting in an expansion of its equity share capital and increased stakes for key promoter group entities.

Rights Issue Details

The rights issue, dated August 6, 2025, saw the company's equity share capital grow from 23,09,52,619 shares to 28,04,42,464 shares, marking a substantial increase in the company's capital base.

Promoter Group Acquisitions

Two prominent promoter group entities have taken advantage of this rights issue to bolster their holdings in MIRC Electronics:

GLM Family Trust

• Acquired 11,503,797 shares (4.98% of pre-rights capital)
• Previous holding: 53,684,390 shares
• New holding: 65,188,187 shares
• Maintained overall stake at 23.24% of the enlarged share capital

Gulita Securities Limited

• Acquired 5,834,436 shares (2.53% of pre-rights capital)
• Previous holding: 27,227,372 shares
• New holding: 33,061,808 shares
• Maintained overall stake at 11.79% of the enlarged share capital

Shareholding Summary

Additional Corporate Updates

MIRC Electronics has scheduled a board meeting for August 13, 2025, to consider and approve the unaudited financial results for the quarter ended June 30, 2025. The company has also indicated that the board will discuss proposals for raising funds through various instruments, including equity shares, warrants, and convertible securities, subject to necessary regulatory and shareholder approvals.

The trading window for the company's shares will remain closed for designated persons from July 1, 2025, until 48 hours after the conclusion of the board meeting, in compliance with insider trading regulations.

These developments suggest that MIRC Electronics is actively working on strengthening its financial position and exploring growth opportunities in the coming months.