Systematic Industries Reports 58.3% Revenue Growth in H1FY26
Systematic Industries Limited announced robust financial results for H1 FY2026, with total income rising 58.3% to Rs 26,211.15 lacs and profit increasing 36.6% to Rs 928.48 lacs. The company's growth was driven by diversification into telecommunication products. Systematic Industries completed its IPO, raising Rs 10,779.60 lacs, which was used to repay borrowings and achieve debt-free status. The company aims for 10x growth by 2031 and projects a 25-30% annual growth rate.
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Systematic Industries Limited (BSE: 544541), India's third-largest steel wire and specialty cable manufacturer, has announced its unaudited financial results for the half-year ended September 30, 2025, showcasing robust growth and strategic developments. The company, which recently completed its initial public offering (IPO), has reported significant improvements in its financial performance and made key appointments.
Financial Highlights
The company's financial results for H1 FY2026 reveal impressive growth:
| Metric | H1 FY2026 | H1 FY2025 | YoY Change |
|---|---|---|---|
| Total Income | 26,211.15 | 16,562.46 | 58.3% ↑ |
| Profit | 928.48 | 679.82 | 36.6% ↑ |
| Basic & Diluted EPS | 5.52 | 4.05 | 36.3% ↑ |
All financial figures in lacs of Indian Rupees (Rs)
Systematic Industries achieved a 58.3% total income growth and a 36.6% profit growth in H1FY26. The company's total income reached Rs 26,211.15 lacs, while total expenses were Rs 24,577.90 lacs for the period.
Strategic Diversification and Growth
The company's growth was driven by diversification into high-growth telecommunication products, including optical fiber cables and OPGW cables under the DuraFiber brand. Systematic Industries has secured strategic approvals from BSNL and RDSO, and obtained L2 position in a PGCIL order.
Future Outlook
Systematic Industries aims for 10x growth by 2031 while maintaining its debt-free status. The company projects a 25-30% annual growth rate.
Balance Sheet Strengthening
Systematic Industries has significantly improved its liquidity position:
- Cash and cash equivalents increased to Rs 11,988.49 lacs from Rs 460.85 lacs in the previous period.
- The company's total assets grew to Rs 33,432.07 lacs as of September 30, 2025, compared to Rs 20,016.57 lacs on March 31, 2025.
Initial Public Offering (IPO)
During the period, Systematic Industries successfully completed its IPO:
- Issued 5,528,000 equity shares at Rs 195 each.
- Total funds raised: Rs 10,779.60 lacs.
- Utilization of IPO proceeds:
- Repayment of borrowings: Rs 9,500.00 lacs
- Issue-related expenses: Rs 850.61 lacs
- General corporate purposes: Rs 428.99 lacs
The company has utilized the IPO funds for debt repayment, contributing to its debt-free status.
Corporate Governance
The Board of Directors has made a key appointment to enhance corporate governance:
- M/s KDA Associates, Practicing Company Secretaries, appointed as Secretarial Auditors for FY 2025-26.
Operational Performance
The company's revenue from operations increased significantly to Rs 25,368.10 lacs in H1 FY2026 from Rs 16,467.97 lacs in H1 FY2025, indicating strong market demand for the company's products or services.
Conclusion
Systematic Industries' improved financial position, successful IPO, and strategic diversification have strengthened its market position. The repayment of borrowings using IPO proceeds has contributed to the company's debt-free status, potentially reducing finance costs in future periods. With its ambitious growth targets and expansion into high-growth telecommunication products, the company's performance in the coming quarters will be of significant interest to investors and stakeholders.
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