BSEH.M. Electro Mech LtdHighNeutral
Announced Fri, 29 May · 16:42 IST

Board Meeting Outcome approving Audited Financial Results for the Half year and Year Ended on 31.03.2026

Emphasis Of MatterResults View source PDF

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AI summary

H.M. Electro Mech Ltd reported audited financial results for FY2026. Revenue from operations grew to Rs 13,221.01 Lakhs from Rs 12,166.69 Lakhs in FY2025, an increase of about 8.7%. Profit after tax improved to Rs 974.93 Lakhs from Rs 835.07 Lakhs, representing a 16.75% growth. EPS for the year is Rs 7.12 compared to Rs 7.86 in the previous year, showing a slight decline. The balance sheet size increased significantly with total assets growing from Rs 9,735.67 Lakhs to Rs 13,713.92 Lakhs. Cash and cash equivalents tripled to Rs 756.88 Lakhs. The statutory auditor issued an unmodified (clean) opinion, but raised an emphasis of matter regarding inventory valuation where detailed records for Rs 2,452.59 Lakhs worth of inventory could not be verified. The company is listed on BSE's SME platform.

Likely market impact

The company showed healthy revenue and profit growth, though EPS declined slightly. The auditor's emphasis on inventory record-keeping is a concern as it affects reliability of asset valuation. Long-term borrowings increased significantly to Rs 593.81 Lakhs from just Rs 1.98 Lakhs. Overall, the results appear positive but investors should monitor the inventory valuation issue.