Emkay Tools Limited (ETL)
Latest quarterly results (H1 FY26)
📢 Recent Corporate Announcements
Emkay Tools Limited has issued a notice convening an Extraordinary General Meeting (EGM) on November 05, 2026. The meeting seeks shareholder approval to appoint M/s. Vijay Agrawal and Co., Chartered Accountants, as statutory auditors to fill a casual vacancy created by the resignation of M/s. P S Thakre & Co on September 24, 2026. Additionally, shareholders will vote on a special resolution allowing Managing Director Mr. Ajayprakash Kanoria to continue in his role after turning 70 years old on May 13, 2027, through the remainder of his term ending May 28, 2028.
- EGM scheduled for November 05, 2026 at 11:00 AM at the registered office in Nagpur
- Casual vacancy caused by the resignation of statutory auditor M/s. P S Thakre & Co effective September 24, 2026
- Proposed appointment of M/s. Vijay Agrawal and Co. as statutory auditors until conclusion of the next AGM
- Special resolution to approve continuation of MD Ajayprakash Kanoria beyond age 70 (attaining May 13, 2027) up to May 28, 2028
Emkay Tools Limited held a Board Meeting on October 12, 2026, approving the appointment of M/s. Vijay Agrawal and Co. as Statutory Auditors to fill a casual vacancy caused by the resignation of M/s. P S Thakre & Co. effective September 24, 2026. The Board also approved the continuation of Managing Director Mr. Ajayprakash Kanoria beyond age 70 (from May 13, 2027 to May 28, 2028), subject to shareholder approval. An Extraordinary General Meeting (EGM) is scheduled for November 5, 2026, to vote on these resolutions.
- Accepted resignation of Statutory Auditor M/s. P S Thakre & Co. effective September 24, 2026
- Appointed M/s. Vijay Agrawal and Co. (FRN: 138350W) as new Statutory Auditors to fill casual vacancy
- Approved continuation of Managing Director Ajayprakash Kanoria past age 70 until May 28, 2028
- Called 1st Extraordinary General Meeting (EGM) on November 5, 2026 at 11:00 AM
Emkay Tools Limited concluded its 3rd Annual General Meeting on September 25, 2026, with shareholders passing all resolutions via 100% assent on poll votes. Key approved items include a final dividend of Rs 3.00 per equity share of face value Rs 1/-. Shareholders also approved the audited financial statements for FY26, the reappointment of Director Ajayprakash Kanoria, and a related-party transaction with Nagpur Tools Private Limited.
- Final dividend of Rs 3.00 per share approved on face value of Rs 1/-
- All resolutions passed with 100% assent via poll voting
- Total of 8,060,250 valid votes cast for the dividend resolution
- Related-party transaction with Nagpur Tools Private Limited approved with 1,954,050 public votes
- 10 shareholders attended the AGM held at the Nagpur registered office
Statutory auditor M/s P S Thakare & Co. tendered its resignation from Emkay Tools Limited effective September 24, 2026. The auditor was originally appointed on September 04, 2024, to hold office until the 5th AGM in 2029. In their resignation letter, the firm cited other professional considerations that made it difficult to devote requisite time and confirmed there were no concerns or other material reasons. The Board and Audit Committee will appoint a new statutory auditor to fill the casual vacancy.
- Resignation effective from closing business hours on September 24, 2026
- Auditor tenure was originally scheduled to run from September 04, 2024 until the 5th AGM in 2029
- Latest audit report issued by the auditor was dated May 29, 2026, for the year ended March 31, 2026
- Auditor confirmed no concerns or other material issues regarding company management
Emkay Tools Limited has notified the stock exchange that September 11, 2026, has been fixed as the record date for determining shareholder eligibility for dividend distribution. The filing was submitted on August 31, 2026. The specific dividend quantum per share was not detailed in this brief record date intimation. Shareholders holding shares on or before the record date will be eligible for the payout.
- Record date for dividend entitlement fixed as September 11, 2026
- Intimation submitted to the stock exchange on August 31, 2026
- Dividend quantum per share not disclosed in the intimation extract
Emkay Tools Limited has notified the stock exchange regarding its upcoming Annual General Meeting (AGM) scheduled for September 25, 2026. The announcement is a standard corporate compliance filing to inform shareholders of the meeting schedule. No additional financial disclosures or special corporate actions were specified in the excerpt.
- Annual General Meeting scheduled to take place on September 25, 2026
- Notice submission digitally signed on August 31, 2026
- Filing is a procedural intimation under exchange compliance regulations
The Board of Directors of Emkay Tools Limited recommended a final dividend of Rs. 3.00 per equity share at its meeting held on August 31, 2026. The proposed dividend is subject to approval by shareholders at the forthcoming Annual General Meeting. This distribution reflects capital return to shareholders following the company's demerger into a specialized taps and cutting tools manufacturer.
- Recommended final dividend of Rs. 3.00 per equity share
- Board meeting held on August 31, 2026
- Dividend is subject to requisite shareholder approval
Financial Performance
Revenue Growth by Segment
The Manufacturing of Taps & Cutting Tools segment generated INR 11,688.80 lakh in FY 2024-25. For the half-year ended September 30, 2025, segment revenue reached INR 6,266.88 lakh, representing a 15.91% growth compared to INR 5,406.91 lakh in the same period of the previous year.
Geographic Revenue Split
The company operates from a single location in Nagpur, Maharashtra. As per the segment reporting, there are no separate geographical segments, meaning 100% of revenue is derived from its domestic operations in India.
Profitability Margins
ETL maintained high profitability in FY 2024-25 with a Net Profit Margin of 38.17% (INR 4,448.64 lakh PAT on INR 11,654.99 lakh gross revenue). For H1 FY26, the PAT margin stood at 38.81% (INR 2,435.66 lakh PAT on INR 6,275.00 lakh total income), showing a slight improvement in efficiency.
EBITDA Margin
The EBITDA margin for FY 2024-25 was 52.88%, with a PBDIT of INR 6,162.74 lakh. This high margin reflects strong value-add in the specialized cutting tools manufacturing process.
Capital Expenditure
As of March 31, 2025, the company held segment assets of INR 8,624.46 lakh in its manufacturing division. Total assets grew from INR 7,797.49 lakh in September 2024 to INR 11,044.93 lakh by March 2025, indicating significant asset allocation following the demerger.
Credit Rating & Borrowing
Finance costs are minimal at INR 9.16 lakh for FY 2024-25, representing only 0.08% of revenue. Interest costs for H1 FY26 further decreased to INR 0.71 lakh from INR 5.97 lakh YoY, suggesting the company is largely debt-free or utilizing internal accruals.
Operational Drivers
Raw Materials
The documents specify 'Cost of materials consumed' which accounted for INR 1,224.40 lakh (10.5% of revenue) in FY 2024-25 and INR 1,003.41 lakh in H1 FY26.
Import Sources
Not explicitly disclosed in the provided documents; however, operations are centralized at the Nagpur, Maharashtra facility.
Capacity Expansion
Current segment assets for manufacturing are valued at INR 8,624.46 lakh. While specific unit capacity is not listed, the 15.9% YoY revenue growth in H1 FY26 indicates an increase in production throughput.
Raw Material Costs
Raw material costs were INR 1,224.40 lakh for FY 2024-25. In H1 FY26, material costs were INR 1,003.41 lakh, which is 16% of total income, compared to 18.5% in H1 FY25, indicating improved procurement efficiency or better product pricing.
Manufacturing Efficiency
Manufacturing expenses as a percentage of revenue were 21.2% in H1 FY26. The company achieved a 23.45% YoY increase in Profit Before Tax (INR 3,310.48 lakh vs INR 2,681.71 lakh), outpacing revenue growth and indicating high operational leverage.
Logistics & Distribution
Other expenses, which include distribution, were INR 295.03 lakh in H1 FY26, representing 4.7% of total income.
Strategic Growth
Expected Growth Rate
16%
Growth Strategy
Growth is being driven by the successful demerger of the 'Tools Business' from Emkay Taps and Cutting Tools Limited (effective Nov 19, 2024). This allows ETL to operate as a specialized entity focused solely on high-margin Taps and Cutting Tools. The strategy involves leveraging the existing Nagpur manufacturing base to increase market penetration, as evidenced by the 15.9% YoY revenue increase in the first half of FY26.
Products & Services
Manufacturing and sale of industrial Taps and Cutting Tools used in precision engineering and machining.
Brand Portfolio
Emkay Tools.
New Products/Services
Not specifically detailed, though the company is focused on the 'Manufacturing of Taps & Cutting Tools' segment.
Market Expansion
The company is currently consolidating its position following the demerger, focusing on its primary manufacturing line in Nagpur.
Strategic Alliances
The company underwent a Scheme of Arrangement for Demerger with Emkay Taps and Cutting Tools Limited, which was approved by the NCLT on October 28, 2024.
External Factors
Industry Trends
The industry is shifting toward high-precision and automated manufacturing, which increases demand for high-quality cutting tools. ETL's 53.24% Return on Net Worth indicates it is well-positioned to capture this high-value demand.
Competitive Landscape
The company competes in the industrial tools market, specifically in the taps and cutting tools sub-segment.
Competitive Moat
ETL's moat is built on specialized manufacturing expertise in the Taps and Cutting Tools niche, evidenced by its 38% net margins. This is sustainable due to the technical precision required in tool manufacturing and the established infrastructure in Nagpur.
Macro Economic Sensitivity
The company is sensitive to industrial GDP growth; the 23.45% growth in PBT suggests high sensitivity to manufacturing sector demand.
Consumer Behavior
Industrial customers are increasingly seeking tools that offer higher durability and precision to reduce downtime in automated production lines.
Geopolitical Risks
Trade barriers on specialized steel or high-speed steel imports could impact raw material costs, as these are essential for cutting tool production.
Regulatory & Governance
Industry Regulations
The company operates under the Companies Act, 2013 and follows Accounting Standard 17 for segment reporting and IND AS for measurement principles. It must comply with industrial manufacturing standards and MIDC regulations in Nagpur.
Taxation Policy Impact
The effective tax rate for FY 2024-25 was 25.19% (INR 1,501.00 lakh tax on INR 5,958.35 lakh PBT).
Legal Contingencies
The company disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements, though specific case values were not detailed in the summary reports.
Risk Analysis
Key Uncertainties
The primary uncertainty is the transition period following the demerger from the parent company. Any failure to maintain the historical client base of the demerged entity could impact revenue by up to 100% as it is the sole business line.
Geographic Concentration Risk
100% of manufacturing is concentrated in Nagpur, Maharashtra, creating a high risk of localized operational disruption.
Third Party Dependencies
The company relies on third-party suppliers for raw materials (10.5% of revenue cost), though specific vendor names are not disclosed.
Technology Obsolescence Risk
The cutting tools industry is subject to changes in metallurgy and coating technologies; failure to upgrade manufacturing processes could lead to loss of market share.
Credit & Counterparty Risk
Trade receivables stood at INR 2,862.49 lakh as of March 31, 2025, representing 24.5% of annual revenue, indicating a significant credit exposure to industrial clients.
