BSESMT Engineering LtdHighNeutral
Announced Thu, 13 Nov · 16:26 IST

Please find enclosed detailed outcome of board meeting.

Revenue Growth 20pctPat Growth 25pctExceptional ItemNegative Operating CashflowDebt Equity ThresholdResults View source PDF

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AI summary

SMT Engineering's board approved unaudited standalone and consolidated results for Q2 and H1 FY26 (ended Sept 30, 2025). On a consolidated basis, revenue from operations jumped to Rs. 3,412.67 lakhs in Q2 (from Rs. 10.92 lakhs in Q2 FY25) and PAT rose to Rs. 635.34 lakhs (from Rs. 8.92 lakhs), with H1 PAT at Rs. 870.29 lakhs versus Rs. 13.29 lakhs last year. The big jump is largely because the results now consolidate two subsidiaries (Sai Machine Tools and Chemerix Life Sciences) acquired only in March 2025, so prior-year numbers are not comparable. The board also approved raising the authorised share capital from Rs. 17 Cr to Rs. 18.10 Cr and a preferential issue of up to 15.5 lakh equity shares at Rs. 225 each (up to Rs. 34.88 Cr) to non-promoter public category investors, subject to shareholder and stock exchange approvals. The standalone entity, which only earns interest from loans to its subsidiary, reported a small profit of Rs. 10.26 lakhs in Q2.

Likely market impact

For shareholders, the headline numbers look dramatic but reflect the recent addition of operating subsidiaries rather than organic growth — investors should compare like-for-like going forward. The preferential issue at a 22.5x premium to face value will raise fresh capital but also dilute existing holders by roughly 8-9%. Negative operating cash flow of Rs. (2,487.61) lakhs in consolidated H1 and rising debt (D/E approaching 1) are points to watch.