Mehai Technology Ltd (540730)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Mehai Technology's revenue was ₹21.9 Cr (+19.7% year on year, -64.5% on the previous quarter), and net profit ₹1.3 Cr (+13.6% year on year); the operating margin was 14.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹21.9 | +19.7% | -64.5% |
| Operating profit | ₹3.2 | +20.8% | -39.2% |
| Net profit | ₹1.3 | +13.6% | -55.9% |
| EPS (₹) | 0.02 | +100.0% | -50.0% |
| Operating margin | 14.7% | — | — |
📢 Recent Corporate Announcements
Mehai Technology Limited has entered into a Share Purchase Agreement dated October 12, 2026, to acquire 100% of the equity share capital of Hi-Tech Services Private Limited for ₹4.50 crore in cash. The target company operates in IT/ITeS data processing services but has reported NIL turnover for the last three financial years (FY24, FY25, and FY26). The acquisition consideration of ₹4.50 crore represents approximately 6.4% of Mehai's current market cap of ₹70 crore and 56% of its TTM net profit of ₹8 crore.
- Acquiring 100% equity stake (28,030 equity shares) for ₹4,50,00,000 cash consideration
- Share Purchase Agreement executed on October 12, 2026
- Target company reported NIL turnover across FY 2023-24, FY 2024-25, and FY 2025-26
- Target company has a paid-up equity capital of ₹2,80,300
- Transaction does not involve related parties
Mehai Technology Limited has been assigned a credit rating of BWR BBB- with a Stable outlook by Brickwork Ratings for its bank loan facilities aggregating to ₹69.00 crore. The rated facilities include ₹67.00 crore of fund-based facilities (primarily cash credit lines across Indian Overseas Bank, PNB, and UCO Bank) and ₹2.00 crore of non-fund-based bank guarantees. The total rated bank facilities of ₹69 crore represent approximately 53.9% of the company's TTM revenue of ₹128 crore and compare to its current reported debt of ₹53 crore. Brickwork noted the company's operational track record, comfortable debt coverage, and tangible net worth in assigning the investment-grade rating.
- Brickwork Ratings assigned 'BWR BBB-/Stable' rating to ₹69.00 crore total bank facilities
- Fund-based facilities rated total ₹67.00 crore, including ₹57.00 crore sanctioned cash credit
- Non-fund-based bank guarantee facility rated at ₹2.00 crore
- Rated facilities distributed among Indian Overseas Bank, Punjab National Bank, and UCO Bank
- Rating is valid for 12 months from the date of communication (29 September 2026)
Mehai Technology Limited has incorporated a joint venture company, Mehai Manjeera Enterprise Private Limited, on August 28, 2026. Mehai holds a 49% stake with an initial equity investment of ₹49,000, while Manjeera Engineering and Construction Co. holds the remaining 51%. The JV aims to bid for mechanized cleaning, laundry, and housekeeping tenders across Indian Railways, PSUs, and government departments. Commercial operation dates and initial project pipelines remain undetermined.
- Incorporated JV 'Mehai Manjeera Enterprise Private Limited' on August 28, 2026
- Mehai holds a 49% stake with an initial capital investment of ₹49,000 (4,900 shares of ₹10 each)
- Partner Manjeera Engineering and Construction Co. holds a 51% controlling stake (5,100 shares)
- Targeting mechanized laundry and housekeeping contracts from Indian Railways, PSUs, and government bodies
Mehai Technology reported a 19.65% YoY growth in consolidated revenue from operations to ₹21.94 crore (₹2,193.58 lakhs) for Q1 FY27, compared to ₹18.33 crore in Q1 FY26, though revenue moderated sequentially from ₹61.81 crore in Q4 FY26. Consolidated net profit rose 14.02% YoY to ₹1.26 crore (₹126.12 lakhs) from ₹1.11 crore in Q1 FY26. The goods division generated ₹15.33 crore in revenue, while services contributed ₹6.60 crore. Paid-up equity share capital expanded to ₹82.90 crore from ₹74.86 crore as of March 31, 2026.
- Consolidated revenue from operations rose 19.65% YoY to ₹21.94 crore versus ₹18.33 crore in Q1 FY26
- Consolidated net profit stood at ₹1.26 crore, up 14.02% YoY from ₹1.11 crore in Q1 FY26
- Goods segment revenue stood at ₹15.33 crore while Services contributed ₹6.60 crore
- Paid-up equity share capital increased to ₹82.90 crore from ₹74.86 crore in the prior quarter
Mehai Technology reported its Q1 FY27 consolidated results with revenue from operations growing 19.65% YoY to Rs 21.94 Cr (Rs 2,193.58 lakhs) compared to Rs 18.33 Cr in Q1 FY26. Consolidated Net Profit rose 14.0% YoY to Rs 1.26 Cr (Rs 126.12 lakhs) from Rs 1.11 Cr in the corresponding quarter last year. Sequentially, revenue dropped significantly from Rs 61.81 Cr in Q4 FY26, highlighting business lumpiness, particularly in services. Segment-wise, sale of goods brought in Rs 15.33 Cr while sale of services contributed Rs 6.60 Cr.
- Consolidated revenue from operations grew 19.65% YoY to Rs 2,193.58 lakhs vs Rs 1,833.37 lakhs in Q1 FY26
- Consolidated Net Profit increased 14.0% YoY to Rs 126.12 lakhs from Rs 110.61 lakhs in Q1 FY26
- Sequential revenue declined 64.5% QoQ from Rs 6,181.34 lakhs recorded in Q4 FY26
- Goods segment generated Rs 1,533.09 lakhs in revenue (segment profit Rs 167.52 lakhs) and Services contributed Rs 660.49 lakhs
Mehai Technology Ltd has scheduled a board meeting on August 14, 2026, to approve its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. This follows a fiscal year (FY26) where the company generated ₹124 crore in revenue and ₹8 crore in PAT. Investors will be watching for performance consistency after the March 2026 quarter reported a significant revenue of ₹61.81 crore. The stock has faced extreme pressure, declining 93.6% over the last 12 months, alongside a notable reduction in promoter holding from 54.21% to 36.45% within the last year.
- Board meeting date set for August 14, 2026, to review Q1 FY27 performance
- Financial results to cover the three-month period ended June 30, 2026
- Trading window for insiders has been closed since June 27, 2026
- Company reported a TTM revenue of ₹124 crore against a market cap of ₹74 crore
Financial Performance
Revenue Growth by Segment
Total income grew 521.94% YoY from INR 16.09 Cr to INR 100.07 Cr. Segment contributions: Sale of Services and allied activities (INR 52.42 Cr, 52.38%), Sale of Products (INR 44.92 Cr, 44.89%), and Job Processing Fees (INR 2.61 Cr, 2.61%).
Geographic Revenue Split
The company focuses on the Bihar market for premium appliance brands. Registered office is in Jaipur, Rajasthan, and corporate office is in Kolkata, West Bengal. Specific percentage split by region is not disclosed.
Profitability Margins
Net Profit Ratio improved from 4.11% in FY24 to 7.04% in FY25, an increase of 293 basis points. Return on Net Worth increased due to achieving higher profits during the current year.
Credit Rating & Borrowing
Debt-Equity Ratio increased from 0.09 in FY24 to 0.24 in FY25, reflecting higher leverage to support the 521.94% revenue growth.
Operational Drivers
Raw Materials
Electronic components and sub-components used for assembly and trading of electronic goods.
Import Sources
Global supply chain sourcing that touches three or more continents before reaching the end-consumer.
Raw Material Costs
Not disclosed as a specific percentage of revenue, but identified as a key risk factor due to cost volatility in the global electronics market.
Manufacturing Efficiency
Inventory turnover ratio improved by 173.7% from 5.48 to 15.00, indicating higher manufacturing efficiency and better alignment of inventory with demand spikes.
Strategic Growth
Growth Strategy
Focusing on technologically advanced and more profitable product segments, aggressive productivity and efficiency improvements, and cost reduction. Leveraging premium appliance brands in the Bihar market to bolster profitability.
Products & Services
Electronic goods, premium appliance brands, and job processing services.
Brand Portfolio
Premium appliance brands (specific names not disclosed).
New Products/Services
Successful launch and scale of premium appliance brands in markets across Bihar.
Market Expansion
Targeting growth in the Bihar market for premium appliances and leveraging the 'Make in India' initiative for domestic manufacturing expansion.
External Factors
Industry Trends
Indigenization of component manufacture through regulatory support (Make in India, National Policy of Electronics); shift toward Net Zero Imports and Zero Defect Zero Effect manufacturing.
Competitive Landscape
Tough competition from global players in China, Japan, Taiwan, South Korea, and low-cost manufacturing destinations like Vietnam.
Competitive Moat
Moat is built on leveraging superior technologies and regional brand strength in the Bihar market; sustainability depends on upgrading the value chain to adapt to disruptive innovation.
Macro Economic Sensitivity
Highly sensitive to Indian GDP growth and economic volatility which causes fluctuations in production and cyclical demand.
Consumer Behavior
Consumer preference spikes can cause demand fluctuations for individual products, requiring efficient lean capabilities to keep inventory aligned.
Geopolitical Risks
Global political and economical environment exerts influence on performance; competition from established manufacturing ecosystems in China, Japan, Taiwan, and South Korea.
Regulatory & Governance
Industry Regulations
Make in India, National Policy of Electronics, Net Zero Imports in Electronics, and Phased Manufacturing Plans for electronic categories.
Environmental Compliance
ESG compliance focused on 'Zero Defect Zero Effect' and accountability for manufacturing processes and recycling under emerging cleaner technology standards.
Taxation Policy Impact
Identified risk in tax laws and GST aberrations on the demand side that need correction to sustain domestic manufacturing growth.
Legal Contingencies
Unclaimed dividend of INR 1,350 for FY18-19 is due for transfer to IEPF on November 3, 2026; other specific litigation values not disclosed.
Risk Analysis
Key Uncertainties
Supply chain complexity and uncertain demand volatility are primary risks; disruptive innovation requires continuous value chain upgrades.
Geographic Concentration Risk
Significant market focus on Bihar for premium appliance brands; registered office in Rajasthan and corporate office in West Bengal.
Third Party Dependencies
High dependency on global component suppliers and interdependencies between OEMs and suppliers for advanced technology components.
Technology Obsolescence Risk
High risk due to constant changes in the electronics industry from disruptive innovation, requiring continuous upgrades to product design.
