Mangal Electrical drops after reporting weak Q1 numbers

Profit before tax (PBT) fell 31.49% YoY to Rs 5.07 crore in Q1 FY26.

During the quarter, EBITDA declined 9.09% to Rs 10 crore, compared with Rs 11 crore posted in same quarter last year. EBITDA margin contracted to 11.1% in Q1 FY26 as against 9.8% in Q1 FY25.

Cold-rolled grain-oriented (CRGO) sales remained flat compared to Q1FY25, however, transformer sales declined due to a temporary slowdown in tendering process, particularly on distribution side. EPC project mobilization was slower, impacting revenue contribution for the quarter.

As of 30 June 2025, the company's order book stood at Rs 294 crore, largely comprising unexecuted EPC contracts and transformer supply orders. CRGO laminates has a short order cycle and generally works on spot ordering basis, providing visibility for the upcoming quarters.

The company plans to enhance its CRGO capacity from 16,200 MT to 28,000 MT, with completion targeted by January 2026. It is also diversifying into new products with the development of vacuum circuit breakers (VCBs), with commercial production scheduled to begin in Q3 FY26.

Rahul Mangal, managing director, Mangal Electrical Industries, stated: Q1FY26 was impacted by price volatility, softer demand, and slower EPC mobilization, leading to muted performance. The quarter 's results featured with seasonal softness, but we expect stronger momentum in H2FY26, supported by improved execution, capacity expansion, and industry tailwinds. Our business fundamentals remain strong, supported by a diversified product mix, trusted customer relationships, and a strong order book.

A significant milestone was the receipt of PGCIL approval for 765 kV class transformers, which expands our addressable market and opens up higher-margin opportunities. We are also pleased to share that development is underway for our upcoming Vacuum Circuit Breaker (VC B) product line, further strengthening our offerings.

Looking ahead, we are optimistic about our growth trajectory, driven by rising demand of power transmission and distribution infrastructure, led by the rising energy demand and encouraging power generation through renewable thrust, With IPO proceeds being deployed towards capacity expansion at our Jaipur and Reengus facilities, along with strengthening of working capital, we are well-positioned to improve execution efficiency and scale up our operations.

Mangal Electrical Industries specialize in processing and manufacturing of transformer components and transformers for the power infrastructure industry. It also offers EPC services for setting up electrical substations. The company's customer base spans government bodies, municipal utilities and private sector energy producers.