Saakshi Medtech and Panels Limited: H1 FY26 Performance and Strategic Momentum

Saakshi Medtech and Panels Limited, a diversified engineering and manufacturing company, has reported a robust performance for the first half of the financial year 2025-26 (H1 FY26). The company's revenue from operations surged by an impressive 31% year-on-year, reaching Rs. 58.31 crore. This strong top-line growth was complemented by significant improvements in profitability, with EBITDA climbing to 18.71% and Profit After Tax (PAT) at 11.31%. These figures underscore the effectiveness of the company's strategic restructuring and capacity-building initiatives undertaken in the previous year.

The management highlighted that H1 FY26 marks the successful realization of these efforts, positioning Saakshi Medtech for sustainable high-value expansion. The company's core strengths lie in its in-house engineering and design capabilities, backed by comprehensive quality certifications including ISO 9001, 14001, 45001, 13485, and AS9100D. These certifications are crucial for its diverse business verticals, which span integrated control systems, precision medtech solutions, engineered metal assemblies, and wire harness manufacturing.

Segmental Performance and Growth Drivers

The growth in H1 FY26 was primarily driven by the integrated control systems segment, which includes high-volume panels for a major automation OEM, and the engineered metal assembly segment. The integrated control systems and EV solutions segment contributed 58.9% of the total revenue, amounting to Rs. 34.33 crore. Engineered metal assemblies followed with 37.4% of revenue, or Rs. 21.81 crore. Precision medtech solutions and wire harness contributed 0.36% (Rs. 0.21 crore) and 2.3% (Rs. 1.37 crore) respectively, with other segments making up the remaining 0.8% (Rs. 0.46 crore).

Notably, the aerospace sector emerged as a significant growth driver, experiencing a seven-fold increase in revenue in H1 FY26 compared to H1 FY25. This rapid growth reflects the successful ramp-up of serial production and increasing trust from OEM customers, bolstered by the company's enhanced quality processes and AS9100D certification. The company is actively engaging with new tier-1 aerospace customers and pursuing NADCAP certification, which is expected to unlock exponential growth in this high-margin segment.

Here is a financial summary of Saakshi Medtech and Panels Limited for H1 FY26:

Strategic Initiatives and Future Outlook

Saakshi Medtech is executing several strategic initiatives to sustain its growth trajectory. The most significant is the completion and imminent commissioning of its new integrated manufacturing facility. This facility, spanning 41,000 square feet, is designed to consolidate major operations, enhance operational efficiency, and is projected to save over Rs. 2 crore in annual rental costs. The second phase of this expansion is on schedule for completion by March 2026, specifically targeting high-volume and long-cycle contracts in panels, HLA, and the aviation sector.

The company is also making inroads into new business areas. The radiator business, with its new setup, is attracting significant customer interest, and production orders are expected to commence by February of the next financial year. This segment primarily caters to the power generation requirements of data centers and off-road vehicle applications. Furthermore, Saakshi Medtech is exploring opportunities in power devices and semiconductors, focusing on providing control panel solutions to OEMs in the semiconductor capital goods segment.

Despite the positive momentum, the company acknowledges certain challenges. The strategic realignment in the wind business has led to a temporary easing of order inflows and deferred orders. Delays in customer certifications and factory commissioning, particularly with GE Vernova, have impacted order flow in that specific segment. Management, however, remains confident in its ability to navigate these headwinds, emphasizing that H2 is typically stronger than H1, with an expected 15% growth between the two halves.

Financial Discipline and Management Commentary

Saakshi Medtech has maintained financial discipline while investing in growth. Total assets stand at Rs. 147.63 crore, with approximately Rs. 15 crore invested in CAPEX. Despite a decline in cash and cash equivalents due to CAPEX and working capital requirements, the company maintains a strong current ratio of 2.34 and a conservative debt-to-equity ratio of 0.17. Return on Equity (ROE) increased to 6.54%, and Return on Capital Employed (ROCE) advanced to 7.45%, reflecting effective cost control and operational optimization.

Management has provided forward-looking guidance, aiming to reach approximately Rs. 140 crore in revenue for the current financial year (FY26). The company also targets crossing the Rs. 200 crore revenue mark in the next couple of years, with the aerospace sector expected to contribute around 20% of the revenue cycle within the same timeframe. EBITDA margins are projected to remain stable around 18% in the coming years, with potential for improvement as depreciation from the new facility kicks in.

In conclusion, Saakshi Medtech and Panels Limited is demonstrating strategic clarity and disciplined execution. The company's focus on expanding into high-growth sectors like aerospace and radiators, coupled with operational efficiencies from its new manufacturing facility, positions it for continued growth and enhanced profitability. While challenges in specific segments are being addressed, the overall outlook remains positive, driven by a diversified product portfolio and a proactive management approach.