BSEMehul Telecom LtdHighNeutral
Announced Mon, 25 May · 17:46 IST

We have enclosed the financial results for the half year and year ended March 31,2026 and other disclosures.

Pat Growth 25pctRevenue Growth 20pctRelated Party TransactionsNegative Operating CashflowResults View source PDF

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AI summary

Mehul Telecom Ltd reported strong financial performance for FY2025-26 with revenue from operations of Rs 20,012 lakhs, a 73% increase from Rs 11,547 lakhs in the previous year. Profit after tax grew 71% to Rs 995.39 lakhs from Rs 581.84 lakhs. EPS improved significantly to Rs 13.07 from Rs 7.99. However, the company faced working capital pressure with negative operating cash flow of Rs 37.30 lakhs, driven by a sharp increase in trade receivables (Rs 1,192.35 lakhs) and inventory buildup (Rs 1,049.31 lakhs). The balance sheet shows total assets of Rs 5,775.17 lakhs, up from Rs 3,370.91 lakhs, with short-term borrowings reduced significantly to Rs 88.48 lakhs. The statutory auditor issued an unmodified (clean) opinion confirming the financial statements present a true and fair view.

Likely market impact

The company delivered robust double-digit growth in both revenue and profit, which is positive for shareholders. However, the negative operating cash flow despite strong profitability signals potential working capital stress that investors should monitor closely. The clean audit opinion removes key audit concern risks.