Jaipur-based transformer component maker Mangal Electrical Industries Limited (MEIL) reported profit after tax (PAT) of ₹11.0 crore for Q2 FY27 (July–September 2026) on 31 October 2026, against ₹13.3 crore a year earlier. Revenue rose to ₹168.6 crore from ₹154.3 crore. CARE Ratings Limited, which monitors its initial public offering (IPO) proceeds, said only ₹12.06 crore of ₹87.86 crore earmarked for capital expenditure (capex) had been used by 30 September 2026. The slower pace could delay the project, it said.
Key Details
The company’s results and press release give these standalone figures against Q2 FY26:
- EBITDA (earnings before interest, tax, depreciation and amortisation): ₹15.4 crore, down 29.4% from ₹21.8 crore, with the margin at 9.2% against 14.2%
- PAT margin: 6.5%, against 8.6%
- Earnings per share: ₹3.97, against ₹5.96
- First half of FY27: revenue of ₹294.4 crore against ₹244.0 crore, and PAT of ₹18.5 crore against ₹17.0 crore
The Q2 FY27 filings give no order book, transformer volumes or split between government and private customers. They also give no reason for the lower margin.
Sales Shift to Components
Transformer components revenue rose 46.6% to ₹148.8 crore from ₹101.5 crore. Transformer revenue fell 73.4% to ₹9.7 crore from ₹36.5 crore, and engineering, procurement and construction (EPC) and other revenue fell to ₹10.0 crore from ₹16.3 crore. The company said it stayed selective on orders amid intense pricing competition in distribution transformers, which lowered transformer sales. The EPC segment posted a loss of ₹1.15 crore before finance cost, depreciation and other income, against a profit of ₹2.51 crore.
Volumes of cold-rolled grain-oriented (CRGO) steel, the core material for transformers, rose about 63% year on year. The company called this its highest quarterly volume growth. It gave no percentage for the change in CRGO realisations, saying only that they show signs of normalisation after a prolonged price correction. In Q1 FY27, volumes rose about 32% year on year while realisations fell about 18%.
IPO Funds and the Capex Delay
MEIL raised ₹400 crore through a fresh issue at ₹561 per share and listed on 28 August 2025. Its results state that ₹322.50 crore had been used by 30 September 2026, with ₹77.50 crore lying with its bank. The monitoring report, filed under Regulation 32 of the Securities and Exchange Board of India listing regulations, shows two objects still open:
- Loan repayment: ₹98.18 crore used of ₹101.27 crore, leaving ₹3.09 crore
- Capex, including civil works, to expand Unit IV: ₹7.30 crore used in Q2 FY27, mainly vendor payments for machinery, leaving ₹75.80 crore
The two balances total ₹78.89 crore. The ₹1.39 crore difference from the bank balance is an over-utilisation on working capital in Q3 FY26.
CARE said the plan was to use ₹49.93 crore of the capex money in FY26 and ₹37.93 crore in FY27. It found no material deviation from the offer document. The Board attributed the capex delay to finalising quotations, which await approval from the Project Procurement Committee set up on 28 January 2026. It attributed the loan repayment delay to foreclosure charges.
CARE also noted a share price of ₹234.50 on 26 October 2026, about 58% below the issue price. The Board said this reflects market conditions and investor sentiment, and does not affect operations or the IPO objectives.
Management Comment
Chairman and Managing Director Rahul Mangal said sequential improvement in realisations gave early signs of market stabilisation, and that the upcoming transformer manufacturing facility will strengthen the company’s position. The timing has moved. In January 2026, MEIL expected its transformer capacity expansion by Q3 FY27, and in July 2026 by the end of FY27. The Q2 FY27 release gives no date. The filings also do not say whether this facility is the Unit IV expansion.
Policy Backdrop
MEIL lists governmental and municipal utilities among its customers. The Revamped Distribution Sector Scheme (RDSS), launched in July 2021 with an outlay of ₹3,03,758 crore, gives financial assistance to distribution utilities, excluding private ones, for loss reduction and smart metering works. The Ministry of Power told the Rajya Sabha on 27 July 2026 that 18.50 lakh distribution transformer meters had been installed by 30 June 2026, of 52.53 lakh sanctioned. MEIL does not link its results to the scheme, and the reply covers metering rather than transformer purchases.
About Mangal Electrical
The company says on its website that it was established in 1990. It processes CRGO slit coils, cut laminations, wound cores and core assemblies, and offers EPC services for electrical substations. It runs five production facilities at Jaipur and Reengus in Rajasthan. Its promoters are Rahul Mangal, Ashish Mangal, Saroj Mangal and Aniketa Mangal. In FY26, revenue was ₹579.7 crore and PAT was ₹43.2 crore, with transformer components contributing ₹409.4 crore.
The Company’s Recent Pipeline
- January 2026: Q3 FY26 revenue was ₹156.3 crore and PAT was ₹13.4 crore, with EPC orders in hand of ₹140 crore.
- July 2026: Q1 FY27 revenue rose 40% to ₹125.8 crore and PAT rose 101% to ₹7.5 crore.
- October 2026: The Board approved Swathirajan Mulvadi Gomadam as Chief Operating Officer for CRGO and as Senior Management Personnel from 31 October 2026.
Outlook
MEIL targets higher capacity utilisation to support annual volume growth of 25–30% over the next three years. It plans a radiator manufacturing facility by the first half of FY28, at a capex of about ₹25 crore, and is exploring export markets and more private sector transformer customers. The step to watch at Unit IV is the committee’s decision on the pending quotations. Q3 FY27 results and CARE’s next report will show whether transformer sales and capex spending recover.
Official Sources
- Mangal Electrical Industries Limited – Press Release, Q2 FY27 Results (NSE, 31 October 2026): https://nsearchives.nseindia.com/corporate/MANGALS_31102026173331_Press_Release.pdf
- Mangal Electrical Industries Limited – Board Meeting Outcome, Results and Monitoring Agency Report (NSE, 31 October 2026): https://nsearchives.nseindia.com/corporate/MANGALS_31102026164103_BM_Outcome.pdf
- Mangal Electrical Industries Limited – Press Release, Q1 FY27 Results (NSE, 30 July 2026): https://nsearchives.nseindia.com/corporate/MANGALS_30072026110625_press_release_final_for_june_30_2026.pdf
- Mangal Electrical Industries Limited – Press Release, Q3 FY26 Results (NSE, 28 January 2026): https://nsearchives.nseindia.com/corporate/MANGALS_28012026183412_Press_Release_31122025.pdf
- Ministry of Power – Rajya Sabha Replies, including Unstarred Question Nos. 950 and 953 (27 July 2026): https://www.powermin.gov.in/static/uploads/2026/07/f59419a881df9acc24bed8753f6d9fda.pdf
- Mangal Electrical Industries Limited – Company Website: https://mangals.com/
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