Financial Performance Highlights

FY 2025-26 Financial Results:

  • Total Income: ₹23,201.10 lakhs (₹230.37 crore) vs FY 2024-25: ₹16,822.35 lakhs (₹163.05 crore) - 41% increase
  • Total Expenses: ₹22,831.83 lakhs vs ₹16,212.58 lakhs in previous year
  • Profit Before Tax: ₹369.27 lakhs vs ₹609.77 lakhs in previous year
  • Provision for Tax: ₹24.66 lakhs vs (₹7.86) lakhs in previous year
  • Profit After Tax: ₹344.61 lakhs (₹3.45 crore) vs ₹617.63 lakhs (₹6.18 crore) in previous year - 44% decrease
  • Earnings Per Share: Basic and Diluted EPS of ₹1.34 vs ₹2.78 in previous year

Q1 FY 2026-27 Performance (Disclosed in CFO Message):

  • Revenue: ₹59.27 crore vs ₹22.43 crore in Q1 FY 2025-26 - 164% growth
  • Net Profit: ₹1.81 crore vs ₹0.15 crore in previous year Q1
  • Operating Profit: ₹4.09 crore vs ₹1.88 crore in previous year Q1

Balance Sheet Position as at 31st March 2026:

  • Total Assets: ₹23,605.49 lakhs
  • Equity Share Capital: ₹3,469.66 lakhs (34,696,551 equity shares of ₹10 each)
  • Other Equity: ₹11,633.77 lakhs
  • Total Equity: ₹15,103.43 lakhs
  • Non-current Liabilities: ₹1,556.68 lakhs
  • Current Liabilities: ₹6,945.39 lakhs
  • Inventory: ₹9,994.15 lakhs
  • Trade Receivables: ₹3,966.62 lakhs
  • Cash and Cash Equivalents: ₹695.31 lakhs

Key Financial Ratios (Significant Changes >25%):

  • Debt Service Coverage Ratio: 1.10 vs 1.85 (Previous Year) - >25% decrease
  • Current Ratio: 2.64 vs 1.78 - >25% improvement
  • Debt-Equity Ratio: 0.33 vs 0.49 - >25% improvement
  • Operating Profit Margin: 5.57% vs 9.14% - >25% decrease
  • Net Profit Margin: 1.49% vs 3.67% - >25% decrease

Capital Structure Changes

Rights Issue Completed:

  • Date of Allotment: 14th January 2026
  • Shares Allotted: 1,12,96,551 Equity Shares of ₹10 each
  • Issue Price: ₹28.32 per share (₹10 face value + ₹18.32 premium)
  • Total Amount Raised: ₹31,99,18,324.32 (₹31.99 crore)

Authorized Share Capital Increases:

1. First Increase: From ₹35 crore to ₹55 crore approved at EGM on 2nd December 2025

2. Second Increase: From ₹55 crore to ₹85 crore approved at EGM on 26th March 2026

Share Warrant Transactions:

  • 13,50,000 equity shares issued upon conversion of warrants in FY 2024-25 were listed on 13th June 2025
  • 3,00,000 share warrants forfeited on 3rd April 2025 due to non-exercise of conversion option

Strategic Business Updates

Railway Sector Expansion:

  • Supplied more than 2,500 railway wheels currently in service
  • Has orders in hand and healthy order pipeline for railway wheels and wheel-set assemblies
  • Targeting forged railway wheels as significant growth opportunity

Defense Sector Opportunities:

  • Evaluating opportunities in forged empty artillery shells and precision-forged defense components
  • Leveraging existing forging expertise for defense applications requiring strength and reliability

Energy Sector Focus:

  • Opportunities in forged turbine blades and critical turbine components for energy sector
  • Focus on higher-value-added and technically demanding products

Export Business:

  • Significant orders from customers in United States and Europe
  • Focus on value-added forged pipe fitting products and specialized components
  • Foreign exchange earnings: ₹219.38 lakhs (FOB)

Operational Initiatives:

  • Implementing Six Sigma and process-improvement practices
  • Focus on reducing wastage, improving productivity, and optimizing costs
  • Strengthening policies for procurement, inventory, working capital, and risk management

Corporate Governance & Board Details

Board Composition:

  • Mr. Yuvraj Malhotra: Chairman and Managing Director (DIN: 00225156)
  • Mr. Amit Pathak: Independent Director
  • Mr. Suryakant Mayani: Non-Executive Non-Independent Director
  • Mr. Rakesh Khajuria: Independent Director
  • Mr. Vishal Jain: Non-Executive Non-Independent Director (Retiring by rotation)
  • Ms. Himanshi Mota: Independent Woman Director

Key Managerial Personnel:

  • Mr. Mohak Malhotra: Chief Financial Officer
  • Ms. Richa Shah: Company Secretary

Board Meetings:

  • 15 Board Meetings held during FY 2025-26
  • Maximum interval between meetings did not exceed prescribed gap

Committee Composition:

  • Audit Committee: Mr. Amit Pathak (Chairman), Mr. Yuvraj Malhotra, Ms. Himanshi Mota
  • Nomination and Remuneration Committee: Mr. Amit Pathak (Chairman), Mr. Rakesh Khajuria, Ms. Himanshi Mota
  • Stakeholders' Relationship Committee: Ms. Himanshi Mota (Chairman), Mr. Yuvraj Malhotra, Mr. Suryakant Mayani

Auditor Appointments

Statutory Auditors:

  • M/s. Anil Bansal & Associates reappointed for second term of five years until conclusion of 23rd AGM in 2028
  • Total Fees Paid: ₹9,00,000 (excluding taxes)

Cost Auditors:

  • Mr. Ritesh N Talati of M/s. V. J Talati & Co. appointed for FY 2025-26 and proposed for FY 2026-27

Secretarial Auditor:

  • Ms. Shreya Shah, Practicing Company Secretary appointed for five years from FY 2025-26 to FY 2029-30

Internal Auditors:

  • M/s. Paresh Kapasi & Associates, Chartered Accountants

Regulatory Compliance Matters

Secretarial Audit Observations:

Delayed filing of following e-Forms after payment of additional fees:

1. e-Form MGT-14 (SRN AB8587227) on 27th October 2025 for registering member resolutions passed at 20th AGM

2. e-Form MGT-15 (SRN AB9171564) on 25th November 2025 for registering report on 20th AGM

3. e-Form MGT-14 (SRN AC2351784) on 18th February 2026 for resolution to increase Authorised Share Capital

4. e-Form SH-7 (SRN AC2352144) on 18th February 2026 for registering increase in Authorised Share Capital

Previous Year Compliance Issues:

  • FY 2024-25: Non-compliance with Regulation 17(1) of SEBI LODR Regulations for not having half of Board as Independent Directors
  • Penalties paid to BSE and NSE for this violation

Corporate Social Responsibility (CSR)

CSR Expenditure FY 2025-26:

  • Average Net Profit (last 3 years): ₹703.45 lakhs
  • 2% CSR Obligation: ₹14.00 lakhs
  • Amount Available for Set-off: ₹1.07 lakhs
  • Total CSR Obligation: ₹12.93 lakhs
  • Actual CSR Spent: ₹14.19 lakhs (exceeding obligation by ₹1.26 lakhs)

CSR Projects Implemented:

1. Sponsoring Hearing aids for specially abled patients: ₹2.17 lakhs through Cancer Foundation (CSR00026600)

2. Setting health camps for weaker sections: ₹12.02 lakhs through Heet Social Welfare Foundation (CSR00043732)

Other Significant Disclosures

Related Party Transactions:

  • All transactions with related parties were in ordinary course of business at arm's length
  • No materially significant transactions in conflict with company's interest
  • Loans from related parties: Mr. Yuvraj Malhotra (₹682.82 lakhs), Diksha Malhotra (₹109.46 lakhs), others

Contingent Liabilities:

  • Goods & Service Tax Appeal: ₹758 lakhs with Commissioner for period July 2017 to March 2020
  • Disputed by company, not provided for in books

Employee Statistics:

  • Total Permanent Employees: 55 as on 31st March 2026
  • Median Remuneration Increase: 8.10%
  • Managerial Remuneration Increase: 5.12%
  • Sexual Harassment Complaints: None received during the year

Energy Conservation Initiatives:

  • Multiple energy conservation measures implemented including prevention of air infiltration, load management, improved burner design
  • Focus on reducing energy consumption through technological improvements

Foreign Exchange Transactions:

  • Foreign Exchange Earnings: ₹219.38 lakhs (FOB)
  • Foreign Exchange Outgo: ₹29.55 lakhs (reimbursement of expenses on behalf of client)

Credit Rating:

  • Long Term Bank Facilities: CARE D
  • Short Term Bank Facilities: CARE D

Dividend Information

  • No dividend recommended for FY 2025-26
  • No unpaid/unclaimed dividends requiring transfer to IEPF

Forward-looking Statements

Management highlighted opportunities in railway wheels, defense components, turbine parts, and export markets, with focus on value addition and margin improvement through better product mix and operational efficiencies.

#Tags: #HiltonMetalForging #AnnualReport #SEBIDisclosure #FY2026Results #RightsIssue #ManufacturingSector #Neutral