Financial Performance Highlights
Munjal Showa reported revenue growth of 5.2% to ₹1,315.42 crore for FY 2025-26 from ₹1,250.45 crore in the previous year. However, profit declined significantly with Profit Before Tax decreasing to ₹295.78 crore from ₹351.65 crore and Profit After Tax declining 24.3% to ₹218.72 crore from ₹288.70 crore. The decline was attributed to input-cost volatility, digital infrastructure investments, lower other income (₹1,955.06 lakhs vs ₹3,027.24 lakhs), and an exceptional past service cost of ₹220.02 lakhs due to implementation of new Labour Codes impacting gratuity.
Dividend and Capital Structure
The Board recommended a final dividend of ₹4.50 per equity share (225%) maintaining the same level as previous years, amounting to ₹1,799.78 lakhs with record date set for August 5, 2026. The company maintains a debt-free capital structure with share capital unchanged at ₹799.93 lakhs and equity reserves of ₹67,002.78 lakhs.
Operational and Strategic Developments
The company operates three manufacturing facilities at Gurugram, Manesar, and Haridwar with technical collaboration from Astemo Ltd. Japan. During the year, it strengthened engineering capabilities through collaborations with Soben (France) and TFX Suspension (Netherlands) for advanced suspension technologies and successfully completed its transition from SAP ECC to SAP S/4HANA. Employee strength increased to 2,299 from 2,088 previous year.
Corporate Governance and AGM Details
The 41st Annual General Meeting is scheduled for August 24, 2026, with key agenda items including adoption of financial statements, dividend declaration, and re-appointment of directors. The Board proposed re-appointment of Mr. Yogesh Chander Munjal as Chairman & Managing Director for 5 years from September 1, 2026, with a remuneration package including basic salary of ₹32,50,000 per month, special pay of ₹3,00,000 per month, and commission up to 1% of net profits.
Key Financial Disclosures
The financial statements revealed significant customer concentration with one customer accounting for 86% of total revenue (₹1,13,395.68 lakhs). Contingent liabilities stood at ₹10.35 crore including income tax demands of ₹852.74 lakhs (₹745.74 paid under protest), ESI demand of ₹50.76 lakhs, and customs demands of ₹131.68 lakhs. The company maintained adequate internal financial controls throughout the year.
Risk Factors and Compliance
The company identified several risk factors including intensifying competition, raw material price increases, dependence on collaborators, economic downturn risks, and transition to electric mobility impacting conventional components. Secretarial audit noted minor compliance issues including delayed submissions and incomplete UPSI capture in Structured Digital Database. The company incurred ROC penalties of ₹16,000 for delayed filings.
Related Party Transactions and CSR
All related party transactions were conducted at arm's length, including dividend payments to Astemo Ltd. Japan (₹448.20 lakhs) and Dayanand Munjal Investment Pvt. Ltd. (₹721.80 lakhs). CSR expenditure of ₹74.13 lakhs exceeded the requirement of ₹72.43 lakhs, focused on education, health, and water sanitation projects through the Mahatma Satyanand Munjal Charitable Clinic.