Mangal Electrical Industries Shares Plunge 7% as Q1 PAT Drops Sharply

Mumbai, September 17, 2025 – The recently listed Jaipur-based Mangal Electrical Industries Ltd (NSE: MEIL, BSE: 544492) witnessed a slide in the stock prices by 7.12% to ₹499.75 in early trade on Wednesday. The sharp fall in the stock price was a result of the company’s steep decline in profitability for the June quarter. The Q1 FY26 numbers are quite dismal as the company’s PAT (Profit After Tax) dropped by 32.7% (Year on Year) to ₹3.7 crore. There was also a major drop in the revenue as it slipped by 21.60%, causing selling pressure on the stock.

Mangal Electrical Industries Ltd, based in Jaipur, specializes in transformer components, CRGO laminations, and EPC services for substations. The company operates five production facilities across Jaipur and Reengus and serves marquee clients, including NTPC, Adani, and ReNew Power.

Stock Price Movement

At 10:45 AM, the stock traded at ₹499.80 (down by 6.64% from the previous day’s close). The high-low ratio is ₹510 and ₹493.25. The trading volume has been close to 6 lakh share,s and it was dominated by sellers (62% sales trades). Today’s plunge takes the stock to the weakest point since its listing on August 28, 2025.

Q1 FY26 Financial Snapshot

In Q1 FY26, the company reported revenue of ₹89.7 crore, down from ₹114.3 crore in Q1 FY25 and ₹153 crore in Q4 FY25, reflecting a sharp sequential and annual decline. EBITDA stood at ₹10 crore, slightly lower than ₹11.2 crore YoY, with margins improving to 11.1% from 9.8%. PAT dropped to ₹3.7 crore versus ₹5.5 crore last year and ₹13.9 crore last quarter, with margins narrowing to 4.2%. EPS also declined to ₹1.82, signaling weaker profitability compared to both sequential and annual periods.

Management Commentary

The company’s MD, Mr Rahul Mangal, attributed the weak financial performance to poor demand, price volatility and slower EPC project mobilization. The MD also underlined that the given quarter was seasonally subdued. However, he expressed optimism about stronger momentum in H2 FY26 driven by capacity expansion and favorable industry trends.

Business Developments

The company reported key business developments, including receiving PGCIL approval for 765 kV class transformers, which opens up higher-margin opportunities. It is also developing Vacuum Circuit Breakers (VCBs), with commercial production slated for Q3 FY26. Additionally, CRGO processing capacity is being expanded from 16,200 MT to 28,000 MT by January 2026. As of June 30, the order book stood at ₹294 crore, mainly from EPC and transformer supply contracts. Further, ₹70 crore from IPO proceeds was utilized for debt repayment, strengthening the balance sheet.

REF: https://nsearchives.nseindia.com/corporate/MANGALS_16092025190916_Press_Release.pdf

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