Mangal Electrical September profit falls as revenue rises

Mangal Electrical Industries Limited reported profit for the period of Rs 10.97 crore for the quarter ended September 30, 2026, down 17.50% from Rs 13.30 crore a year earlier. Revenue from operations rose 9.23% to Rs 168.58 crore, but higher material, stock-purchase and employee costs coincided with lower earnings.

What were Mangal Electrical’s September-quarter results?

Mangal Electrical reported revenue from operations of Rs 168.58 crore in the quarter ended September 30, 2026, compared with Rs 154.33 crore in the September 2025 quarter. Other income rose to Rs 2.10 crore from Rs 1.31 crore, taking total income to Rs 170.67 crore, while total expenses increased to Rs 156.06 crore from Rs 137.81 crore.

Profit before tax declined to Rs 14.61 crore from Rs 17.83 crore in the comparable quarter, a reduction of Rs 3.22 crore. Tax expense fell to Rs 3.64 crore from Rs 4.52 crore, but profit for the period still decreased to Rs 10.97 crore from Rs 13.30 crore. Basic and diluted earnings per share, not annualised, were Rs 3.97 against Rs 5.96.

For the half year ended September 30, 2026, revenue from operations was Rs 294.41 crore, compared with Rs 243.99 crore in the prior-year half. Half-year profit before tax was Rs 24.71 crore versus Rs 22.90 crore a year earlier, showing that the September-quarter decline followed a June quarter in which profit before tax was Rs 10.10 crore.

Which costs changed in Mangal Electrical’s September quarter?

Mangal Electrical’s cost of materials consumed rose to Rs 120.64 crore in the September 2026 quarter from Rs 112.60 crore a year earlier, an increase of Rs 8.04 crore. Purchases of stock in trade increased by Rs 4.65 crore to Rs 16.70 crore, and employee benefit expense rose by Rs 1.94 crore to Rs 8.21 crore.

Other expenses increased to Rs 7.87 crore from Rs 6.97 crore, while the inventory movement was a reduction of Rs 0.29 crore, compared with a reduction of Rs 8.09 crore in the September 2025 quarter. These changes occurred alongside a Rs 14.25 crore year-on-year increase in revenue, leaving total expenses Rs 18.25 crore higher.

Finance costs declined to Rs 1.85 crore from Rs 3.99 crore, and depreciation expense fell to Rs 1.06 crore from Rs 1.34 crore. Engineering, procurement and construction, or EPC, project erection and civil-work expense also declined to Rs 0.02 crore from Rs 2.69 crore, but those reductions did not offset the increases in material, stock-purchase, employee and other expenses.

How did Mangal Electrical’s segments perform?

Mangal Electrical’s manufacturing and trading segment generated Rs 163.25 crore of revenue during the September 2026 quarter, up from Rs 142.31 crore a year earlier. The segment covers electrical transformers, cold rolled grain-oriented steel, or CRGO, electrical accessories and other related items, and accounted for most of the company’s Rs 168.58 crore revenue from operations.

The manufacturing and trading segment result, before finance cost, depreciation, amortisation and other income, fell to Rs 16.58 crore from Rs 19.33 crore. Thus, segment revenue increased by Rs 20.95 crore while its disclosed segment result decreased by Rs 2.75 crore over the same period.

The EPC segment reported revenue of Rs 5.33 crore, down from Rs 12.02 crore in the September 2025 quarter. Its segment result was a loss of Rs 1.15 crore, compared with a profit of Rs 2.51 crore a year earlier. The filing defines EPC revenue as the supply of electrical items together with related civil, erection and installation work.

What changed in Mangal Electrical’s balance sheet?

Mangal Electrical’s total assets were Rs 743.54 crore at September 30, 2026, compared with Rs 707.05 crore at March 31, 2026. Current assets increased to Rs 596.88 crore from Rs 560.79 crore, led by inventories of Rs 251.48 crore, compared with Rs 192.05 crore at the financial year-end.

Trade receivables rose to Rs 221.52 crore at September 30 from Rs 204.40 crore six months earlier. Cash and cash equivalents declined to Rs 0.67 lakh from Rs 5.79 crore, while bank balances other than cash equivalents fell to Rs 77.50 crore from Rs 85.13 crore. Other current assets decreased to Rs 43.16 crore from Rs 69.13 crore.

Total equity increased to Rs 608.43 crore from Rs 590.37 crore, including other equity of Rs 580.80 crore at September 30, 2026. Current liabilities rose to Rs 129.86 crore from Rs 112.48 crore, with current borrowings increasing to Rs 47.08 crore from Rs 43.42 crore and trade payables due to others rising to Rs 64.76 crore from Rs 40.65 crore.

What does Mangal Electrical’s half-year cash flow show?

Mangal Electrical reported net cash used in operating activities of Rs 14.59 crore for the half year ended September 30, 2026, compared with an outflow of Rs 40.72 crore in the prior-year half. Working-capital movements included a Rs 59.43 crore increase in inventory and a Rs 18.44 crore increase in trade receivables, partly offset by a Rs 23.67 crore increase in trade payables.

Investing activities generated Rs 7.44 crore in the 2026 half year, compared with cash used of Rs 147.73 crore a year earlier. The period included Rs 21.60 crore spent on property, plant, equipment and capital work in progress, while changes in non-current financial assets contributed Rs 22.43 crore and changes in bank balances other than cash equivalents contributed Rs 7.63 crore.

Financing activities generated Rs 1.37 crore during the six months, compared with Rs 291.20 crore in the previous-year half. Net cash and cash equivalents decreased by Rs 5.79 crore, taking the closing balance to Rs 0.67 lakh. The cash-flow statement says it includes unutilised net initial public offering, or IPO, proceeds to be used in accordance with the August 25, 2025 prospectus.

Conclusion

Mangal Electrical’s September-quarter results show a divergence between sales and earnings: revenue increased by Rs 14.25 crore year on year, while profit for the period decreased by Rs 2.33 crore. Manufacturing and trading added Rs 20.95 crore of revenue but recorded a lower segment result, while EPC revenue fell by Rs 6.70 crore and the segment moved to a Rs 1.15 crore loss.

The next disclosures to watch are working-capital movements and the use of unutilised IPO proceeds. CARE Ratings Limited reported nil deviation from the IPO objects for the quarter ended September 30, 2026, and said utilisation was in line with the offer document; inventories of Rs 251.48 crore, receivables of Rs 221.52 crore and cash equivalents of Rs 0.67 lakh will be measurable items in later statements.