Financial Performance FY 2025-26

Revenue and Profitability:

  • Revenue from operations: ₹58.44 crore (compared to ₹63.67 crore in FY25)
  • Profit after tax: ₹2.52 crore (compared to ₹0.26 crore in FY25)
  • Operating profit margin: 10.07% (improved from negative 5.29%)
  • Net profit margin: 4.31% (improved from 0.41%)

Key Drivers of Improvement:

  • Structural cost reduction
  • Consolidation of manufacturing processes
  • Better capacity utilisation
  • More favourable business mix
  • Improved execution
  • Lower finance costs

Financial Ratios:

  • Debtor days improved to 53 from 124
  • Debt-equity ratio reduced to 0.93 from 2.38
  • Interest coverage improved to 2.37 times from negative 1.05 times

Dividend: No dividend recommended for FY26, with available resources being directed toward strengthening the business.

Business Overview

Aplab is an Indian electronics engineering and manufacturing company incorporated in 1964 and listed on BSE Limited. The Company designs and manufactures:

  • Power-conversion systems
  • Test and measurement instruments
  • Banking and retail automation solutions
  • Related service offerings

Corporate Office and Manufacturing: Digha, Navi Mumbai

Markets Served:

  • Industrial manufacturing
  • Education and research
  • Defence
  • Avionics and space
  • Telecom and broadcasting
  • Banking and financial services
  • Other specialised markets

Quality Certifications: ISO 9001:2015 and ISO 27001:2022

Business Segment Performance

Management reviews business through four operating groups:

1. Power Control and Conversion Electronics (PCCE)

  • Contributed almost three-quarters of FY26 revenue
  • Includes UPS systems, emergency power systems, frequency converters, automatic changeover switches, power-conditioning equipment, isolation transformers
  • Specialized defence and aviation products: MIL-grade aviation ground-power units (400 Hz AC and 28 V DC supplies), high-power battery chargers and DC power systems
  • Major sectors: defence, aviation, aerospace and other strategic-sector customers
  • Revenue from defence customers moderated by approximately 2-3% during the year due to timing and deployment schedules of defence projects
  • KAAS Series currently in development and customer evaluation stage (may take up to two years for qualification)

2. Test and Measurement Instrumentation (TMI)

  • Revenue increased by approximately 30% (from a low revenue base)
  • Principal users: industrial equipment manufacturers, R&D and DPSU laboratories, technical and educational institutions
  • Products: LONAR programmable AC sources, XSP and VSP programmable DC sources
  • XSP high-efficiency programmable power-supply range launched in Q4 FY26, currently at early market development stage

3. Banking and Business Automation

  • Revenue increased by 50% compared to previous FY
  • Portfolio includes: self-service passbook printers, passbook lifecycle automation software, CTS-Ready cheque deposit self-service kiosks, retail advertising & payment kiosks
  • Management expects good growth due to RBI's two-hour window for cheque clearance requiring CTS-Ready kiosks
  • Opportunities arise through PSU bank tenders with L1-based procurement leading to pricing pressure

4. Customer Service and Support

  • Service revenue: ₹6.58 crore in FY26
  • Year-on-year decline attributed to reduction in serviceable installed base of older banking kiosks that reached end of operational life
  • Long-term aspirational goal: derive up to 50% of revenue from services (not financial guidance or time-bound target)
  • Maintenance contracts typically extend 1-2 years following initial sale
  • Equipment replacement cycles may extend to around seven years

Technology, Manufacturing and Quality

Manufacturing: Operations consolidated at Navi Mumbai facility with process improvements for safer, leaner, higher-quality production

R&D:

  • Expenditure remains modest, intended to scale progressively toward industry standards as revenues grow
  • Focus on high-efficiency power-electronics design including silicon-carbide and gallium-nitride technologies
  • Objectives: improve efficiency, power density, response and product performance

Outlook and Strategy

Opportunities identified: Critical power, defence and aviation applications, industrial testing, banking automation and lifecycle services

Challenges: Conversion timelines subject to customer procurement cycles, project schedules, competitive intensity, input costs, broader economic and geopolitical environment

No specific guidance provided: Management will not provide specific revenue, margin, order-book or conversion guidance beyond appropriately disclosed information

Governance and Communication

  • Governance framework founded on responsible conduct, reliable financial reporting, statutory compliance and continuous improvement of internal controls
  • Material developments will continue to be communicated through stock exchange in accordance with regulatory requirements