SMT Engineering Ltd (538563)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, SMT Engineering's revenue was ₹30.9 Cr (+14.6% year on year, -58.2% on the previous quarter), and net profit ₹3.8 Cr (+90.3% year on year); the operating margin was 21.6%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹30.9 | +14.6% | -58.2% |
| Operating profit | ₹6.7 | +67.0% | -68.2% |
| Net profit | ₹3.8 | +90.3% | -68.3% |
| Operating margin | 21.6% | — | — |
📢 Recent Corporate Announcements
SMT Engineering has released a corrigendum to its AGM notice regarding a preferential issue of 1,42,858 warrants to raise ₹4.00 crore. Out of the proceeds, ₹3.90 crore is allocated to step-down subsidiary Chemerix Life Sciences Private Limited for capex towards setting up a manufacturing unit, with a tentative 12-month deployment timeline. An amount of ₹0.10 crore is earmarked for general corporate purposes. The fundraise is small relative to the company's ₹734 crore market cap (0.54%) and ₹166 crore TTM revenue (2.41%).
- Preferential warrant issue comprises 1,42,858 warrants totaling ₹4,00,00,240 (₹4.00 crore).
- ₹3,90,00,240 is allocated for capex in subsidiary Chemerix Life Sciences Private Limited.
- ₹10,00,000 is earmarked for general corporate purposes.
- Tentative deployment timeline for the proceeds is within 12 months from receipt of funds.
- AGM is scheduled for September 30, 2026 at 12:30 P.M. IST via VC/OAVM.
SMT Engineering Ltd has issued the notice for its 34th Annual General Meeting scheduled for September 30, 2026. Key special business includes raising authorized share capital from ₹18.10 crore to ₹19.10 crore and issuing up to 1,42,858 convertible share warrants to promoters at ₹280 each, aggregating up to ₹4.00 crore. The total fundraise is modest, representing approximately 0.54% of the company's current market cap of ₹734 crore. Remote e-voting is scheduled from September 27 to September 29, 2026, with a cut-off date of September 23, 2026.
- Preferential issue of up to 1,42,858 convertible warrants to promoters at ₹280 per warrant
- Total issue size aggregates to ₹4,00,00,240 with 25% (₹70/warrant) payable upfront
- Increase in authorized share capital from ₹18.10 crore to ₹19.10 crore
- 34th AGM to be held on September 30, 2026, with cut-off date on September 23, 2026
SMT Engineering Ltd has scheduled a Board of Directors meeting on September 3, 2026, to consider and approve a proposal for fund raising. The proposed capital raise may take place through equity shares, convertible warrants, preferential issue, or private placement under SEBI regulations. The board will also consider convening an Annual General Meeting to obtain shareholder approval. Specific details regarding the target amount and issue price have not yet been disclosed.
- Board meeting scheduled for September 3, 2026, to evaluate a fundraising proposal
- Instruments under consideration include equity shares, convertible warrants, or other permissible securities
- Modes being evaluated include preferential issue, private placement, or other SEBI-compliant routes
- Trading window closed from August 31, 2026, until 48 hours post-declaration of the board meeting outcome
SMT Engineering's Board met on August 13, 2026, to address a fine levied by BSE for the delayed submission of the Secretarial Compliance Report for FY26. The company confirmed that the fine has been paid and attributed the delay to an inadvertent lapse. While the specific fine amount was not disclosed, the Board has implemented corrective measures to strengthen internal compliance monitoring. This follows a period of significant growth, with TTM revenue reaching ₹162 Cr and a 1308% stock price return over the last 12 months.
- Board meeting held on August 13, 2026, to address the regulatory lapse.
- Non-compliance pertains to the Secretarial Compliance Report for the financial year ended March 31, 2026.
- Initial communication from BSE regarding the fine was received via email on June 22, 2026.
- The company confirmed the applicable fine has been fully paid in accordance with SEBI Master Circulars.
SMT Engineering reported a weak set of results for Q1 FY27 (ended June 2026), with consolidated net profit dropping 75% YoY to ₹0.50 Cr from ₹2.0 Cr. While consolidated revenue grew 30% YoY to ₹35.13 Cr, it saw a sharp sequential decline of 52.5% from the ₹74.0 Cr reported in the March 2026 quarter. Profitability was severely impacted, with the net profit margin thinning to approximately 1.4%. Additionally, the company disclosed a regulatory fine levied by BSE for failing to submit its Secretarial Compliance Report for FY26 on time.
- Consolidated Revenue stood at ₹35.13 Cr, a 30% increase over the ₹27.0 Cr reported in June 2025.
- Consolidated Net Profit plummeted to ₹0.50 Cr, down 75% from ₹2.0 Cr in the same quarter last year.
- Sequential revenue contraction of 52.5% compared to the ₹74.0 Cr achieved in Q4 FY26.
- Earnings Per Share (EPS) for the quarter fell to ₹0.30, compared to ₹6.67 in the previous quarter.
- BSE levied a fine for non-submission of the Secretarial Compliance Report for the financial year ended March 31, 2026.
SMT Engineering reported a consolidated revenue of Rs 11.19 Cr for Q1 FY27, a significant drop compared to the FY26 quarterly average of approximately Rs 40.5 Cr. Consolidated net profit for the quarter stood at just Rs 0.50 Cr, which is a fraction of the TTM PAT of Rs 22 Cr. The company also disclosed that BSE has levied a fine for the non-submission of the Secretarial Compliance Report for FY26. This performance comes as the company attempts to transition from a trading-based model to specialized manufacturing.
- Consolidated Revenue for Q1 FY27 stood at Rs 11.19 Cr, representing only 6.9% of the total FY26 revenue of Rs 162 Cr.
- Consolidated Net Profit for the quarter was Rs 0.50 Cr, significantly lower than the TTM PAT of Rs 22 Cr.
- Standalone operations contributed only Rs 0.50 Cr to the top line, indicating heavy reliance on subsidiaries.
- BSE levied a fine for non-compliance regarding the Secretarial Compliance Report for the financial year ended March 31, 2026.
- Consolidated EPS for the quarter fell to Rs 0.30, compared to the TTM EPS of Rs 13.33.
SMT Engineering Ltd has scheduled a board meeting for August 13, 2026, to approve its unaudited financial results for the quarter ended June 30, 2026. This follows a transformative FY26 where revenue surged to Rs 162 Cr from just Rs 21 Cr in FY25, reflecting a strategic pivot from trading to manufacturing. With the stock trading at a P/E of 37.0 and having gained 1473.9% over the last 12 months, these results are critical for sustaining investor confidence. The market will specifically look for the sustainability of the Rs 74 Cr revenue run rate achieved in the March 2026 quarter.
- Board meeting scheduled for August 13, 2026, to consider Q1 FY27 results.
- Financials include both Standalone and Consolidated results for the quarter ended June 30, 2026.
- Trading window for insiders is closed until 48 hours after the results are declared.
- Company reported a TTM PAT of Rs 22 Cr against a market capitalization of Rs 814 Cr.
SMT Engineering Ltd has settled a regulatory penalty of ₹1,13,280 (including GST) imposed by the BSE for the delayed submission of its Annual Secretarial Compliance Report for the financial year ended March 31, 2026. The company received the initial notice on June 22, 2026, and rectified the non-compliance by submitting the required report on July 17, 2026. The fine was paid in two installments on July 10 and July 18, 2026. While the financial impact is negligible, the event marks a procedural lapse in the company's regulatory reporting obligations.
- Total fine paid to BSE including GST amounts to ₹1,13,280
- Initial fine of ₹96,000 plus GST was levied under Regulation 24A(2)
- Secretarial compliance report for FY26 was submitted on July 17, 2026
- Final payment tranche of ₹25,960 was completed on July 18, 2026
- Company received the initial intimation from the exchange on June 22, 2026
SMT Engineering Ltd has settled a regulatory penalty of ₹1,13,280 (including GST) imposed by BSE for the delayed submission of its Annual Secretarial Compliance Report for the financial year ended March 31, 2026. The company received the initial notice on June 22, 2026, and rectified the non-compliance by submitting the report on July 17, 2026. The fine was paid in two installments on July 10 and July 18, 2026. While the financial impact is negligible, the event highlights a lapse in adhering to SEBI (LODR) timelines.
- Total fine paid to BSE amounts to ₹1,13,280 including GST
- Initial intimation of non-compliance received from the exchange on June 22, 2026
- Secretarial compliance report for FY26 finally submitted on July 17, 2026
- Final tranche of penalty (₹25,960) paid on July 18, 2026, to stop the daily accrual of fines
- Company confirms no material impact on financial or operational activities
SMT Engineering Ltd has submitted its Annual Secretarial Compliance Report for the financial year ended March 31, 2026. This filing is a mandatory requirement under Regulation 24A of SEBI (LODR) Regulations, 2015, ensuring the company adheres to statutory listing norms. The report was certified by M/s P.S. Tripathi & Associates, an external firm of Practicing Company Secretaries. As a routine administrative disclosure, it contains no new financial or operational data.
- Submission of Annual Secretarial Compliance Report for the Financial Year ended March 31, 2026
- Compliance fulfilled under Regulation 24A of SEBI (LODR) Regulations, 2015
- Report certified by external firm M/s P.S. Tripathi & Associates, Practicing Company Secretaries
- Filing completed on July 17, 2026, following the close of the 2025-26 fiscal year
Financial Performance
Revenue Growth by Segment
Total revenue from operations grew by 720.24% YoY, reaching INR 21.02 Cr in FY 2024-25 compared to INR 2.56 Cr in FY 2023-24. The company is primarily engaged in trading activities, but is transitioning to manufacturing.
Profitability Margins
Net profit margin improved significantly to 2.42% in FY 2024-25 from a negative margin of (67.81%) in FY 2023-24. Return on Equity (ROE) turned positive at 0.57% compared to (26.55%) in the previous year.
EBITDA Margin
EBITDA margin was 12.89% in FY 2024-25, a sharp decline from 62.32% in FY 2023-24, despite the substantial increase in absolute revenue.
Capital Expenditure
Not disclosed in available documents; however, the company amended its main object clause on May 12, 2025, to diversify into manufacturing, which will require future capital expenditure.
Credit Rating & Borrowing
The company reported no interest expense for FY 2024-25, indicating zero or negligible interest-bearing debt. The Interest/Debt Service Coverage Ratio was (100%) due to the lack of interest costs.
Operational Drivers
Raw Materials
Steel scrap, carbon steel, alloy steel, and non-ferrous metals for the newly approved manufacturing operations.
Capacity Expansion
The company is transitioning from trading to manufacturing metal fabrications, machine tools, turbines, and furnaces. Current installed capacity is not disclosed.
Raw Material Costs
Not disclosed in available documents as the manufacturing shift is subsequent to the FY 2024-25 financial results.
Manufacturing Efficiency
Not disclosed in available documents as manufacturing operations are in the setup phase.
Strategic Growth
Growth Strategy
The company is diversifying into manufacturing metal fabrications, machine tools, turbines, furnaces, and steel-based components. This strategic shift, approved on May 12, 2025, aims to leverage initiatives like 'Make in India' and the 'National Steel Policy' to move away from the volatility of trading-based operations.
Products & Services
Metal fabrications, machine tools, turbines, engines, furnaces, castings, forgings, grinding media, pipes, and tubes.
New Products/Services
New manufacturing lines for turbines, furnaces, and forged components are expected to contribute to future revenue following the object clause amendment.
Market Expansion
The company is targeting the industrial manufacturing ecosystem to offer more stable growth avenues compared to its previous trading focus.
External Factors
Industry Trends
The industry is shifting towards domestic manufacturing supported by policy initiatives like the National Steel Policy. The company is positioning itself to move from trading to manufacturing to capture value in the evolving industrial ecosystem.
Competitive Moat
The company is attempting to build a moat by transitioning into specialized manufacturing (turbines, machine tools) which offers higher barriers to entry and more scalability than pure commodity trading.
Macro Economic Sensitivity
Highly sensitive to global economic conditions, inflationary pressures, and shifts in monetary policy which influence commodity and capital markets.
Geopolitical Risks
Geopolitical tensions are cited as a primary cause for increased market fluctuations and declining profitability in the commodity segment.
Regulatory & Governance
Industry Regulations
Operations are subject to the Companies Act 2013, Ind AS, and SEBI (LODR) Regulations. Future manufacturing will be subject to industrial standards and pollution control norms.
Environmental Compliance
Not disclosed in available documents, though future foundry and steel melting operations will require strict adherence to environmental norms.
Risk Analysis
Key Uncertainties
The primary uncertainty is the successful execution of the transition from a trading-based model to a manufacturing-based model, alongside commodity price volatility risks.
Technology Obsolescence Risk
The company recognizes technology and products are fairly standardized but relies on human resource talent to maintain a competitive edge.
Credit & Counterparty Risk
Trade receivables turnover ratio improved to 6.49 in FY 2024-25 from 2.00 in FY 2023-24, indicating improved collection efficiency.
