Salzer electronics Limited has announced a strategic acquisition to expand its presence in the digital energy management sector. The company has acquired a 30% shareholding in Aurawin Solutions Private Limited for Rs. 30,000/-, marking a significant step in its growth strategy.

Acquisition Details

The investment involves the purchase of 3,000 equity shares of Rs. 10/- each in Aurawin Solutions Private Limited. The transaction was completed on February 13, 2026, through cash consideration.

About Aurawin Solutions

Aurawin Solutions Private Limited is a recently incorporated company, having been established on August 05, 2024. The company operates as a subsidiary of BCITS Private Limited and specializes in providing comprehensive solutions in digital energy management and smart grid technologies.

Strategic Alignment

The acquisition represents a strategic move by Salzer Electronics to strengthen its position in the energy management sector. The investment aligns with the company's broader strategy to expand its footprint in:

• Digital energy management solutions
• Smart grid technologies
• Digital infrastructure solutions
• Related energy services

The company has confirmed that this investment falls within the scope of its main business operations, ensuring strategic coherence with existing operations.

Regulatory Compliance

The acquisition has been disclosed in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed that:

• No related party transactions are involved
• Promoter/promoter group/group companies have no interest in the acquired entity
• No governmental or regulatory approvals are required
• The transaction is conducted at arm's length

This strategic investment positions Salzer Electronics to explore new opportunities in the rapidly growing digital energy management sector while leveraging Aurawin's specialized expertise in smart grid solutions.

Salzer Electronics Limited has published its Q3FY26 unaudited financial results and conducted an earnings conference call on February 12, 2026, providing comprehensive insights into the company's performance and future outlook.

Q3FY26 Financial Performance Overview

The company demonstrated strong revenue growth across both standalone and consolidated operations for the quarter ended December 31, 2025. Management highlighted that revenue increased by 24% year-on-year, driven primarily by higher demand for industrial switchgear and wire and cable businesses.

Standalone Results Q3FY26

Consolidated Results Q3FY26

Business Segment Performance

During the earnings call, management provided detailed insights into divisional performance. The industrial switchgear division contributed 56% of total revenues in Q3 and grew by 12% year-on-year with EBITDA margins of 12%. The wires and cables business contributed 39% of revenues with impressive 49% year-on-year growth, though margins remained at 5% due to commodity price pressures.

Management Commentary on Market Challenges

Joint Managing Director Rajesh Doraismamy highlighted significant commodity cost pressures during the quarter. Silver and copper prices experienced unprecedented increases, with copper rising from ₹800 per kilogram to ₹1,300 per kilogram, impacting margins by approximately 200 basis points. The company implemented price increases in November and planned major price hikes for February and March 2026.

Smart Meter Business Update

Smart meter revenues stood at ₹1.25 crore for Q3, bringing nine-month FY26 revenues to ₹25 crores. Management acknowledged challenges in securing large-scale orders due to stringent eligibility criteria for new entrants, evolving tender conditions, and aggressive pricing dynamics. The company has created capacity for 4 million meters and obtained approvals from multiple DISCOMs across Gujarat, Maharashtra, Andhra Pradesh, Tamil Nadu, and Karnataka.

Strategic Developments and Future Outlook

The company announced the appointment of Raman Krishnamoorthy as Chief Financial Officer effective April 1, 2026. Management highlighted positive policy developments including the U.S.-India interim trade agreement reducing tariffs from 50% to 18%, which should benefit export competitiveness. The union budget allocation of ₹12.2 lakh crore for public capital expenditure and ₹18,000 crores for RDSS supports the company's market positioning.

FY27 Guidance and Growth Strategy

Management reiterated guidance of 20% revenue growth for FY27, excluding smart meters, with gradual margin improvement expected. The growth is primarily expected from the industrial switchgear segment, particularly three-phase transformers and control gears. Blended EBITDA margins are targeted at 9.5%-10% for FY27. The company continues to focus on data centers, renewables, and EV charging infrastructure as key growth markets.