Announcement Unaudited Financial Results of the company as on 30.09.2025
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Awaiting price reaction for this filing.
H.M. Electro Mech Ltd, which recently listed on the BSE SME platform in January 2025, reported its H1 FY26 (April–September 2025) results on 13 November 2025. Revenue from operations fell sharply to Rs. 33.78 crore from Rs. 76.27 crore in H1 FY25, a year-on-year drop of roughly 56%. Profit before tax declined to Rs. 3.31 crore (vs Rs. 6.89 crore) and profit after tax stood at Rs. 2.37 crore (vs Rs. 5.02 crore), down about 53% YoY. Despite the steep revenue fall, operating margins were broadly maintained because raw material costs fell proportionally. However, cash flow from operations remained deeply negative at Rs. -5.44 crore, driven by a Rs. 10.29 crore build-up in inventories and higher receivables. The statutory auditor SVJK and Associates issued an unqualified (clean) limited review report with no qualifications or emphasis-of-matter paragraphs. Most IPO proceeds have been deployed, with Rs. 20.78 crore of the Rs. 27.74 crore raised used for working capital as planned.
Weak half-year print with revenue nearly halving year-on-year is a clear negative for sentiment, even though margins held and the auditor flagged no issues. The persistent negative operating cash flow, combined with rising inventory levels, is a yellow flag for working-capital health and may pressure the stock in the near term until revenue stabilises.