Mangal Electrical Industries Limited , a player in the power infrastructure and electrical equipment sector, has reported no material deviation from its stated objectives in utilizing the proceeds from its Rs. 400 crore Initial Public Offering (IPO), according to the monitoring agency CARE Ratings Limited. The report covers the quarter ended September 30, 2025.

Fund Utilization Breakdown

The company has utilized Rs. 180.61 crore of the IPO proceeds across various objectives. Here's a detailed breakdown of the utilization:

Key Highlights

1. Loan Repayments: The company has utilized Rs. 75.32 crore for repayment of various bank borrowings, which aligns with its stated objective.

2. Working Capital and General Corporate Purposes: A total of Rs. 82.58 crore has been used for working capital requirements and general corporate purposes. This includes creation of fixed deposits for margin against non-fund-based limits, payments to Trade Receivables Discounting System, employee expenses, and factory-related expenses.

3. Capital Expenditure: Only a small portion (Rs. 0.27 crore) has been used so far for capital expenditure, including civil works for expanding the facility at Unit IV.

4. Issue Expenses: Rs. 22.44 crore has been spent on issue-related expenses, including reimbursements.

Unutilized Funds

The remaining Rs. 219.39 crore of the IPO proceeds have been deployed as follows:

Implementation Timeline

The monitoring agency report indicates that the implementation of various objectives is ongoing, with no reported delays. The company plans to complete the utilization of funds for most objectives by FY26, with capital expenditure extending into FY27.

Mangal Electrical Industries Limited's adherence to its stated objectives in fund utilization demonstrates a commitment to transparency and efficient use of IPO proceeds. Investors can take confidence in the company's disciplined approach to deploying the raised capital for its growth and operational needs.

Mangal Electrical Industries Limited (MEIL) has reported mixed financial results for the second quarter, showing revenue growth but a decline in profitability.

Financial Highlights

MEIL reported the following key figures for the quarter:

• Net profit: ₹133.00 million, down from ₹143.00 million in the same period last year
• Revenue: Increased to ₹1,540.00 million from ₹1,330.00 million year-over-year
• EBITDA: Declined to ₹218.40 million from ₹239.50 million
• EBITDA margin: Compressed to 14.15% from 18.05% in the previous year

Revenue Growth

The company witnessed a significant year-on-year growth in its revenue, which increased by approximately 15.79% compared to the same quarter last year. This growth indicates strong demand for MEIL's products and services.

Profitability Challenges

Despite the revenue growth, MEIL faced challenges in maintaining its profitability:

• Net profit decreased by about 6.99% year-over-year
• EBITDA saw a decline of approximately 8.81%
• EBITDA margin contracted by 390 basis points

These figures suggest that the company may be facing increased operational costs or competitive pressures that are impacting its bottom line.

Market Implications

The mixed results present a nuanced picture for investors and stakeholders:

• The revenue growth demonstrates MEIL's ability to expand its market presence and sales.
• However, the decline in profitability metrics may raise questions about the company's cost management and operational efficiency.

Looking Ahead

As Mangal Electrical Industries navigates these mixed results, key areas to watch include:

• Initiatives to improve operational efficiency and cost management
• Strategies to maintain revenue growth while addressing profitability challenges
• Any guidance or outlook provided by the management for future quarters

Investors and analysts will likely be keen to see how MEIL plans to balance its growth trajectory with profitability improvement in the coming periods.