Company Overview
SEDEMAC Mechatronics Limited (NSE: SEDEMAC, Scrip Code: 544723) reported exceptional FY26 financial performance and completed significant corporate milestones including its successful IPO listing.
Financial Performance Highlights
Revenue from operations surged 60.76% to INR 1,058.38 crore in FY26 from INR 658.36 crore in FY25. Profit Before Tax increased 121.85% to INR 150.19 crore, while Profit After Tax more than doubled to INR 103.58 crore (up 120.15%). EBITDA grew 77.70% to INR 222.20 crore with margin expansion to 20.99% from 19.00%. Key profitability metrics improved significantly with ROCE at 40.43% (from 33.80%) and ROE at 27.53% (from 22.01%).
Capital Markets Activity
The company successfully completed its Initial Public Offering on March 11, 2026, issuing 8,043,300 equity shares at ₹1,352 per share through an offer for sale aggregating ₹1,087.35 crore. The company also executed a massive bonus issue of 43,569,934 shares in a 1499:1 ratio, capitalizing ₹43.57 crores from securities premium account.
Business Segment Performance
Mobility segment revenue grew 61.41% to INR 910.57 crore, driven by increased adoption of Sensorless ISG technology which now covers 35% of 2&3-wheelers produced in India. Industrial segment revenue increased 56.86% to INR 147.81 crore, led by EFI ECU adoption in North American genset markets. Export revenue showed strong growth of 89.33% to INR 86.03 crore.
Operational Expansion and Capacity
The company expanded manufacturing capacity with new facilities in Pune and Tamil Nadu, acquiring 13 acres at Shoolagiri. Control-intensive ECUs sold increased 60% to 3.9 million units. Employee strength crossed 500 with an engineering team of ~237 personnel. Customer concentration improved with top customer contribution reducing from 72% in FY24 to 58% in FY26.
Capital Structure and Financing
Equity share capital increased dramatically to INR 44.16 crore from INR 0.03 crore due to warrant conversions, bonus issue, and stock option exercises. The company maintained term loans with multiple banks (HDFC, EXIM, Yes Bank, Citibank) totaling ₹72.44 crore at competitive interest rates, secured against movable and immovable assets.
Management and Governance
Key appointments included Mr. Manish Sharma as Whole-Time Director, Mr. Rajesh Sheth as CFO, and Mr. Prasad Chavan as Company Secretary. The board comprised 6 directors including 3 executive directors. Mr. Anaykumar Joshi was recognized as promoter due to significant contributions.
Outlook and Risk Factors
The company expects continued momentum from Sensorless ISG adoption on new 2-wheeler models and electric vehicle MCU ramp-up. Key risks include customer concentration, electrification transition (7.4% of mobility revenue from EVs), geopolitical impacts on supply chain, and commodity price inflation. The company has opted for the new tax regime with expected effective tax rate of approximately 25.2%.
Corporate Actions and Compliance
The Board recommended no dividend for FY26 to conserve resources for expansion. The 19th AGM is scheduled for September 9, 2026, to be conducted via video conference. Statutory auditors B S R & Co. LLP continue their term, with proper compliance across all regulatory requirements.