Mangal Electrical Q2 FY27: revenue +9% YoY, but PAT falls 17.5% as margins compress

Mangal Electrical Industries' standalone revenue for the quarter ended September 30, 2026 rose 9.2% YoY to ₹168.58 Cr, but net profit fell 17.5% YoY to ₹10.97 Cr (EPS ₹3.97 vs ₹5.96) as margins compressed: net profit margin narrowed to 6.51% from 8.62% a year ago, and the operating (EBITDA) margin fell to roughly 9.15% from 14.15%. There were no exceptional items in either period, so the decline reflects underlying operating performance, not a one-off — cost of materials consumed was ₹120.64 Cr (71.6% of revenue) this quarter, and finance cost (₹1.85 Cr) and depreciation (₹1.06 Cr) stayed broadly stable, pointing to the squeeze sitting in input costs rather than financing or fixed charges. Sell-side commentary on the company's preceding Q4 FY26 print (profit -8% YoY despite 20% revenue growth) attributed similar compression to copper/aluminium cost inflation the company could not fully pass through — this quarter's pattern is consistent with that.

Sequentially the quarter looks like a recovery: revenue grew 33.98% and PAT 45.89% over a soft Q1 FY27 (₹125.83 Cr revenue, ₹7.52 Cr PAT, 8.84% OPM), but per our rule YoY is primary and that comparison remains the headline story — profitability is still well below the year-ago print despite higher revenue, so this is a sequential bounce off a weak base, not a trend reversal. No analyst coverage exists for the stock (zero sell-side estimates tracked since its August 2025 IPO), so vsStreet is unknown; the company has issued no formal guidance or concall commentary in our records and this filing carries no accompanying management press release, so vsGuidance is also unknown. The quarter coincided with a CFO transition (Rohit Pokharna appointed September 16, 2026, succeeding a resigning director as of September 18, 2026) and the board designating COO Swathirajan Mulvadi Gomadam as Senior Management Personnel effective today — neither is linked to the operating numbers in the filing. Separately, the CARE Ratings monitoring report confirms nil deviation in IPO-proceeds utilisation, with ₹77.50 Cr still unutilised and parked in bank as of September 30, 2026.

The stock went into the print at ₹251.65, down 4.5% over the past month of trading.