Board Meeting Details
The Board of Directors meeting was held on Tuesday, August 11, 2026, starting at 12:15 PM IST and ending at 3:40 PM IST. The Board approved:
- Unaudited Standalone and Consolidated Financial Statements for quarter ended June 30, 2026
- Statutory Auditor's Draft Limited Review Auditors Report (Standalone and Consolidated) as per Ind AS
Standalone Financial Results (Quarter ended June 30, 2026)
Financial Performance:
- Total Income: ₹17,326.39 lakhs
- Total Expenses: ₹15,821.66 lakhs
- Profit before exceptional item and tax: ₹1,504.73 lakhs
- Exceptional items: ₹397.02 lakhs (compensation received from customer)
- Profit before tax: ₹1,901.75 lakhs
- Tax expense: ₹414.00 lakhs (Current tax: ₹98.65 lakhs, Deferred tax: ₹315.35 lakhs)
- Profit for the quarter: ₹1,487.76 lakhs
- Other comprehensive income: ₹18.21 lakhs
- Total comprehensive income: ₹1,505.97 lakhs
- Paid up equity share capital: ₹9,498.58 lakhs (Face value ₹10 each)
- Earnings per share: Basic ₹1.57, Diluted ₹1.57
Exceptional Items Details
Standalone exceptional items for quarter ended June 30, 2026:
- Compensation received from customer: ₹397.02 lakhs
Historical exceptional items:
- Quarter ended March 31, 2026: ₹263.15 lakhs (Compensation: ₹243.83 lakhs, Labour Codes impact: ₹19.32 lakhs)
- Year ended March 31, 2026: ₹(4,889.99) lakhs (Compensation: ₹1,195.13 lakhs, Labour Codes impact: ₹(95.55) lakhs, Impairment of Investment: ₹(3,000.00) lakhs, Impairment of loan: ₹(2,745.00) lakhs, Impairment on accrued interest: ₹(244.57) lakhs)
Subsidiary Insolvency Impact
The Company's step-down subsidiary, MFT Motoren und Fahrzeugtechnik GmbH, Germany, filed an application for initiation of insolvency and liquidation proceedings before the Dresden District Court. The Court admitted the application and provisional liquidator was appointed on September 08, 2025.
As the subsidiary is under liquidation, its financial statements are being prepared on a liquidation basis. Management reassessed the recoverable amount and recognized an impairment loss of ₹5,775.57 lakhs during year ended March 31, 2026, representing entire carrying value of the investment and loan outstanding (including accrued interest).
New Labour Codes Impact
On November 21, 2025, Government of India notified four labour codes consolidating 29 existing labour laws. The Company estimated liability for employee benefits resulting in incremental expense:
- Past service cost of gratuity liability: ₹256.33 lakhs
- Leave encashment liability: ₹53.22 lakhs
Total: ₹309.55 lakhs during year ended March 31, 2026
The Company continues to monitor finalization of Central and State Rules and clarifications from the Government.
Consolidated Financial Results (Quarter ended June 30, 2026)
Financial Performance:
- Total Income: ₹20,085.76 lakhs
- Total Expenses: ₹19,214.09 lakhs
- Profit before exceptional item and tax: ₹871.67 lakhs
- Exceptional items: ₹397.02 lakhs
- Profit before tax: ₹1,268.69 lakhs
- Tax expense: ₹424.00 lakhs (Current tax: ₹98.65 lakhs, Deferred tax: ₹325.35 lakhs)
- Profit for the quarter: ₹844.69 lakhs
- Other comprehensive income: ₹71.86 lakhs
- Total comprehensive income: ₹916.55 lakhs
- Paid up equity share capital: ₹9,498.58 lakhs
- Earnings per share: Basic ₹0.89, Diluted ₹0.89
Consolidated Entities:
1. Memco Engineering Private Limited (Wholly Owned Subsidiary)
2. PCL (International) Holding B.V., Netherlands (Wholly Owned Subsidiary)
3. MFT Motoren und Fahrzeugtechnik GmbH, Germany (Step Down Wholly Owned Subsidiary up to September 08, 2025)
4. Emoss Mobile Systems B.V., Netherlands (Step Down Wholly Owned Subsidiary)
Consolidated Exceptional Items
For quarter ended June 30, 2026:
- Compensation received from customer: ₹397.02 lakhs
Historical consolidated exceptional items:
- Quarter ended March 31, 2026: ₹261.72 lakhs
- Year ended March 31, 2026: ₹1,056.78 lakhs (including gain on de-consolidation of MFT: ₹935.04 lakhs)
Auditor Review
Statutory auditors M/S K A & Associates LLP issued unmodified conclusion on both standalone and consolidated financial results. For consolidated results, they relied on review reports of other auditors for 3 subsidiaries representing total revenues of ₹2,742.20 lakhs and total net loss after tax of ₹626.21 lakhs for the quarter.
Additional Information
- Figures for quarter ended March 31, 2026 are balancing figures between audited annual figures and published nine-month figures
- Previous quarter/year figures have been regrouped/rearranged where necessary
- The Company operates as a single operating segment in auto components manufacturing
- Results prepared in accordance with Ind AS 34 and SEBI Regulations