Financial Performance
MIC Electronics Limited reported a significant deterioration in financial performance for FY 2025-26. The company posted a consolidated net loss of ₹126.34 crore, a sharp reversal from the net profit of ₹96.94 crore in FY25. This resulted in negative earnings per share of ₹(0.53) compared to positive EPS of ₹0.40 in the previous year.
The net loss was primarily driven by the reversal of Deferred Tax Assets aggregating ₹293.13 crore pertaining to carried forward business losses of FY 2017-18 upon expiry of the permissible carry-forward period under the Income-tax Act.
Revenue and Operational Metrics
Total consolidated revenue stood at ₹190.52 crore for FY26. Cost of materials consumed increased to ₹50.70 crore from ₹32.96 crore in FY25. Employee benefit expense rose to ₹10.45 crore from ₹7.47 crore, while financial costs increased to ₹6.05 crore from ₹4.61 crore.
Balance Sheet and Asset Quality
Trade Receivables: Showed a concerning increase to ₹195.89 crore from ₹84.11 crore in FY25. The ageing schedule revealed ₹32.77 crore in credit-impaired receivables older than 3 years, with a full allowance provided. Additionally, ₹21.27 crore in receivables 1-2 years old carried significant credit risk with a ₹1.06 crore allowance.
Inventories: Increased to ₹29.11 crore from ₹16.15 crore, with work-in-progress rising to ₹25.06 crore from ₹10.67 crore.
Cash Position: Deteriorated significantly to ₹0.29 crore from ₹6.65 crore.
Borrowings: Total secured loans stood at ₹348.73 crore as of March 31, 2026, including vehicle loans and term loans from HDFC Bank, Toyota Financial Services, Bank of Maharashtra, and Canara Bank.
AGM and Corporate Governance
The 38th Annual General Meeting is scheduled for September 16, 2026, at the company's Hyderabad registered office. Key agenda items include:
- Adoption of audited standalone and consolidated financial statements for FY26
- Re-appointment of Mr. Sivanand Swamy Mitikiri as director
- Re-appointment of M/s. Bhavani & Co. as statutory auditors for a second term
- Approval of related party transactions worth up to ₹100 crore with four group entities for FY 2027-28
Remote e-voting will be available through CDSL's platform from September 13-15, 2026.
Strategic Initiatives and Capital Structure
The Board approved a significant preferential issue of 5.69 crore shares at ₹41.38 per share to acquire an 89.65% stake in Neo Semi SG Pte Ltd, Singapore, for a total consideration of ₹357.60 crores. Post-issue, the promoter holding will stand at 41.83%.
Authorized share capital was increased to ₹90.00 crore while paid-up capital remained unchanged at ₹48.20 crore comprising 24.10 crore equity shares of ₹2 each.
Subsidiaries and Related Party Transactions
The consolidated financial statements include subsidiaries SOA Electronics Trading LLC (100% owned), Cellular Galaxy Electronics LLC (99% owned), and MICK Digital India Limited (100% owned). Detailed disclosures were provided for related party transactions, including remuneration to KMP of ₹2.69 crore.
Key Ratios and Compliance
Key financial ratios showed deterioration: Current Ratio declined to 1.91 from 2.22, Return on Equity turned negative at (0.06) from 0.06, and Net Profit Ratio fell to (0.07) from 0.10. The company confirmed compliance with all regulatory requirements and disclosed no material orders from regulators during the year.