Admach Systems FY26 Results (BSE: 544669)
Signal: Margin expansion
The read
FY26 was a landmark year: revenue crossed ₹6,890 lakh (+29%), EBITDA margin expanded 297bps to 17.48% from operating leverage and debt elimination, and PAT doubled to ₹1,001 lakh. The IPO proceeds (₹3,835 lakh) enabled heavy capex (₹1,879 lakh) and full debt repayment. However, working capital ballooned – trade receivables jumped 70% and operating cash flow turned negative. EPS growth (41.57%) lagged PAT due to dilution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹68.91 Cr | 29.15% | N/A |
| EBIT | ₹12.05 Cr | 44.79% | |
| Net profit | ₹10.01 Cr | 58.87% | |
| EPS | ₹18.39 | 41.57% | |
| EBIT margin | 17.48% |
P&L walk
FY26 revenue ₹6,890.99 lakh (+29.15% YoY) driven by strong demand for automation solutions; EBITDA margin expanded 297bps to 17.48% from 14.51%, aided by operating leverage (employee cost +18.66% vs revenue +29.15%) and lower finance cost (-49.60% YoY). Other income surged to ₹93.04 lakh (₹34.23 lakh prior) from IPO funds yield. Net profit doubled to ₹1,001.28 lakh (+58.87% YoY). EPS grew 41.57% to ₹18.39, lagging PAT growth due to equity dilution from IPO.
Segments
Single reportable segment – machine designing and building services.
Key positives
- Revenue +29.15% to ₹6,890.99 lakh – strong demand for automation solutions.
- EBITDA margin +297bps to 17.48% – operating leverage evident; employee cost grew only 18.66% vs revenue +29.15%.
- Finance cost halved (-49.60%) – all short-term debt repaid; net cash position of ₹452.15 lakh.
- Other income surged to ₹93.04 lakh (₹34.23 lakh) – IPO funds deployed.
Key concerns
- Operating cash flow negative at -₹452.89 lakh due to massive working capital build (receivables +₹1,294.72 lakh, payables -₹858.73 lakh).
- Receivable days ~166 – elevated for an industrial OEM; collection cycle needs monitoring.
- EPS growth (41.57%) diluted by IPO share issuance; PAT growth 58.87% was partially masked.
Research and educational content only. Not investment advice.