Systematic Industries FY26 profit up 16.4% on 23.9% revenue

FY26 results: profit rises, revenue grows faster

Systematic Industries Limited (SIL) reported a 16.4% year-on-year increase in net profit for FY26, taking profit to ₹210.1 million for the year ended March 31, 2026. In FY25, the company had reported net profit of ₹180.6 million. Revenue from operations rose at a faster pace, increasing 23.9% year-on-year to ₹5,563 million from ₹4,492 million in the previous year. The company’s FY26 performance was positioned around demand across its core segments and a push into optical fibre and power transmission-linked products.

The company also highlighted balance sheet improvement during the year. Systematic Industries said it achieved net-debt free status as on March 31, 2026, following repayment of borrowings. Alongside the annual numbers, the company also disclosed that it recorded a net profit of ₹117 million on revenue of ₹3,006 million for the half year ended March 31, 2026.

Board approval and reporting dates

Systematic Industries’ Q4 FY26 results were declared on May 26, 2026. The company also referred to a board meeting held on May 26, 2026, approving audited financial results for the year ended March 31, 2026. It reported that statutory auditors issued an unmodified opinion on the financial results.

These details matter for investors tracking the timeline of audited disclosures, as well as how management frames performance and order wins in the same communication.

Operating performance: EBITDA up, margin at 7.3%

For FY26, SIL reported EBITDA of ₹405 million, up 9.7% from ₹369 million in FY25. The company reported an EBITDA margin of 7.3% for the year. Compared with revenue growth of 23.9%, the slower rise in EBITDA indicates that costs increased alongside scale-up, even as the business expanded.

Profit after tax (PAT) for FY26 was reported at around ₹210 million, and the company cited a PAT margin of 3.8%. While margins remain modest, the year’s performance was supported by higher volumes and product mix expansion into segments such as optical fibre cables (OFC) and optical ground wire (OPGW).

EPS largely flat after bonus adjustment

Basic earnings per share (EPS), adjusted to the bonus issue, stood at ₹10.74 in FY26 compared with ₹10.75 in FY25. The near-flat EPS indicates that profit growth did not translate into higher per-share earnings over the period after the stated adjustment.

For investors, EPS stability in a growth year typically increases focus on margins, capital structure changes, and how quickly new capacity or new segments contribute to the bottom line.

Q4 FY26: revenue rises, EBITDA pressure shows up

For the quarter ended March 31, 2026 (Q4 FY26), Systematic Industries reported revenue from operations of ₹3,000 million on a standalone basis. A separate market snapshot in the provided information also cited revenue of ₹3,000 million in Q4 FY26 versus ₹2,800 million in Q4 FY25.

Operationally, Q4 showed cost pressure. The same snapshot reported EBITDA of ₹187 million in Q4 FY26 versus ₹205 million in Q4 FY25, with EBITDA margin contracting to 6.25% from 7.29% year-on-year. It also stated that EBITDA dropped 8.7% year-on-year due to rising operating costs. Net profit for Q4 FY26 was cited at ₹117 million versus ₹113 million in Q4 FY25, indicating a relatively stable profit outcome despite weaker operating profitability.

Net-debt free milestone and IPO proceeds utilisation

Systematic Industries stated it became net-debt free as of March 31, 2026, supported by repayment of borrowings. The company also disclosed that the ₹1,156.0 million raised through its IPO was fully utilised. A separate fund utilisation update cited that ₹950.0 million was used for repayment of borrowings and ₹42.9 million was allocated for general corporate purposes.

For a manufacturing business expanding into EPC and optical fibre-linked products, moving to a net-debt free position can reduce interest burden and improve flexibility, although the operational results still show the importance of controlling costs during scale-up.

Order wins: PGCIL EPC entry and Indian Railways supply

A key development during the year was SIL’s first EPC contract from Power Grid Corporation of India Limited (PGCIL). The company said the contract covers end-to-end execution, including supply and installation of OPGW cable for the 400KV Agra-Kumher portion of the transmission line referenced in its disclosure.

Separately, the company received an Indian Railways order worth over ₹100 million for supply of optical fibre cables, specifically 24/48-fibre armoured optical fibre cables as described in the provided text. These wins add to visibility for product segments linked to power transmission and railway communication infrastructure.

The company also stated it exported OPGW cables at the beginning of FY27 and indicated a robust order pipeline of ₹250 million for new product segments.

Key financial and operating snapshot

Market impact: what investors are likely to track

The FY26 numbers show that Systematic Industries delivered strong revenue growth while profit grew at a slower pace, with EBITDA rising in single digits. The Q4 pattern reinforces the point that operating costs can affect margin even when revenue expands. In the market snapshot provided, the assessment was “neutral”, citing that revenue growth was encouraging but the EBITDA decline and margin contraction warranted caution until costs stabilise.

From a business perspective, the entry into EPC work for PGCIL and supply wins for Indian Railways broaden the company’s exposure beyond manufacturing-led order flows. This could change how investors evaluate execution risk, working capital needs, and margin profile, particularly for EPC-led delivery obligations.

Why the EPC qualification point matters

Management stated that the PGCIL EPC contract positions the company to qualify for upcoming OPGW tenders estimated at around ₹10,000 million in FY27. While this figure is an estimate for tenders and not company revenue guidance, it frames the opportunity set in power transmission-related optical infrastructure.

Separately, the company said it remains confident of improving profitability driven by product mix, operating leverage, and scale-up of newer businesses. Based on the disclosed numbers, the near-term marker will be whether quarterly margins move back toward the 7% range referenced in the market snapshot, alongside continued order conversion.

Conclusion

Systematic Industries closed FY26 with higher profit and faster revenue growth, improved its balance sheet by becoming net-debt free, and added visibility through a first PGCIL EPC contract and an Indian Railways optical fibre order. Q4 performance, however, highlighted margin sensitivity to operating costs. The next set of updates to watch will be progress on the ₹250 million order pipeline for new product segments and developments around OPGW exports and EPC participation in FY27.