appoints MD, approves ₹100 crore preferential issue

The Board of Directors of Hind Rectifiers Limited convened a meeting on May 16, 2026, to discuss several key strategic and governance matters. The board approved the re-appointment of Mr. Suramya Nevatia as the Managing Director of the company for a term of three years, effective from August 17, 2026, to August 16, 2029. This decision is based on the recommendation of the Nomination and Remuneration Committee and is subject to the approval of shareholders.

Key Managerial Appointments

In addition to the leadership changes, the board approved the revision of remuneration and terms for Ms. Akshada Nevatia, Executive Director, also subject to shareholder approval. Mr. Suhas Pawar has been appointed as the Company Secretary and Compliance Officer with effect from May 16, 2026. He succeeds Ms. Megha Singh Shekhawat, who ceased to hold the position of Interim Company Secretary and Compliance Officer effective the close of business hours on May 16, 2026.

Preferential Issue of Equity Shares

The board has approved the issuance of 10,86,366 equity shares on a preferential basis to Tata Mutual Fund (Small Cap Fund). The shares will be issued at a price of ₹920.50 per share, aggregating to ₹100 crore. This issuance is conducted in accordance with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and is subject to necessary regulatory and shareholder approvals.

Particulars Details Investor Tata Mutual Fund (Small Cap Fund) Type of Investor Non-promoter - Institution (Mutual fund) Number of Shares 10,86,366 Equity Shares Issue Price ₹920.50 per share Total Amount ₹100 crore

Employee Stock Options

The company granted an additional 75,291 employee stock options under the Hirect Employees Stock Option Plan 2018 (ESOP 2018). These options have a face value of ₹2 each and are granted at a price of ₹470 per option. The options are convertible into one equity share each upon vesting and exercise. The granted options will vest within a period ranging from one to four years from the date of grant.

Governance and Shareholder Approval

To facilitate the re-appointment of the Managing Director and the preferential issue of equity shares, the board approved a proposal to conduct a postal ballot process. The draft notice dated May 16, 2026, was approved, and the notice will be submitted to the stock exchanges in due course. The board meeting commenced at 11:30 a.m. and concluded at 2:00 p.m.

Hind Rectifiers held its Board of Directors meeting on May 16, 2026, wherein the board unanimously approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The statutory auditor, M/s. GMJ & Co, Chartered Accountants (FRN: 103429W), issued audit reports with unmodified opinions on both standalone and consolidated financial results.

Standalone Financial Performance

Hind Rectifiers delivered strong standalone financial performance for the year ended March 31, 2026. Revenue from operations grew significantly year-on-year, while net profit also saw a robust increase. On a quarterly basis, Q4 FY26 standalone net profit rose to ₹164M from ₹102M in Q4 FY25, while revenue grew to ₹2.6B from ₹1.85B over the same period. Q4 FY26 EBITDA stood at ₹268M compared to ₹201M in Q4 FY25, with EBITDA margin at 10.15% versus 10.84% in Q4 FY25. The following table summarises the key standalone financial metrics (Rs. in Millions):

Metric: Q4 FY26 (Audited) Q3 FY26 (Unaudited) Q4 FY25 (Audited) FY26 (Audited) FY25 (Audited) Revenue from Operations: 2,640.20 2,432.71 1,850.49 9,492.12 6,553.67 Total Income: 2,644.15 2,434.80 1,853.90 9,501.75 6,568.48 Total Expenses: 2,448.80 2,258.54 1,712.27 8,751.94 6,065.77 Profit Before Exceptional Items & Tax: 195.35 176.26 141.63 749.81 502.71 Exceptional Items: (7.19) (12.77) - (19.96) - Profit Before Tax: 188.16 163.49 141.63 729.85 502.71 Net Profit: 163.81 137.28 101.49 576.71 372.71 Total Comprehensive Income: 164.46 136.84 101.82 571.04 372.67

EBITDA Metric: Q4 FY26 Q4 FY25 EBITDA: ₹268M ₹201M EBITDA Margin: 10.15% 10.84%

On a standalone basis, earnings per share (after exceptional items) for FY26 stood at ₹16.79 (basic) and ₹16.72 (diluted), compared to ₹10.87 (basic) and ₹10.85 (diluted) in FY25. Reserves excluding revaluation reserve stood at ₹2,143.90 million as at March 31, 2026, against ₹1,565.97 million in the previous year.

Consolidated Financial Performance

On a consolidated basis, which includes the results of three subsidiaries — Coincade Studios Private Limited, Hirect FZ LLC, and Elventive France SAS (formerly Belink Hirect SAS) — the group reported the following results (Rs. in Millions):

Metric: Q4 FY26 (Audited) Q3 FY26 (Unaudited) Q4 FY25 (Audited) FY26 (Audited) FY25 (Audited) Revenue from Operations: 2,798.15 2,773.89 1,850.49 9,991.25 6,553.67 Total Income: 2,808.99 2,775.98 1,853.90 10,007.71 6,568.48 Total Expenses: 2,793.34 2,610.03 1,713.85 9,448.64 6,067.35 Profit Before Exceptional Items & Tax: 15.65 165.95 140.05 559.07 501.13 Exceptional Items: (7.19) (12.77) - (19.96) - Profit Before Tax: 8.46 153.18 140.05 539.11 501.13 Net Profit/(Loss): (15.89) 126.97 99.91 385.97 371.13 Total Comprehensive Income/(Loss): (13.58) 128.47 100.23 382.25 371.08

Consolidated earnings per share (after exceptional items) for FY26 were ₹13.10 (basic) and ₹13.05 (diluted). Consolidated reserves excluding revaluation reserve stood at ₹2,016.98 million as at March 31, 2026.

Segment-Wise Performance

Hind Rectifiers operates across three reportable segments on a consolidated basis. The CTC/PICC/EPICC segment was identified as a separate operating segment with effect from November 3, 2025, and accordingly, prior period comparatives are not available. The segment-wise revenue and results for FY26 are presented below (Rs. in Millions):

Segment: FY26 Revenue FY26 Segment Result CTC/PICC/EPICC: 207.51 (14.36) Engineering Products: 9,492.60 1,140.75 EMS: 498.29 (188.56)

Dividend and Capital Actions

The Board of Directors recommended a dividend of Rs. 1.40 per equity share of Rs. 2 each (70% of face value) for FY26, subject to shareholder approval at the ensuing Annual General Meeting. The dividend will be paid within 30 days of its declaration by shareholders. This compares to a dividend of Rs. 2 per equity share declared in the previous year.

During the year, the company allotted 1,71,83,807 bonus equity shares in a 1:1 ratio on March 27, 2026, by capitalisation of Securities Premium, increasing the paid-up equity share capital from 1,71,83,807 equity shares to 3,43,67,614 equity shares. The bonus issue had no impact on the net worth of the company.

Key Corporate Developments

Several notable corporate developments were disclosed alongside the financial results. Elventive France SAS (formerly Belink Hirect SAS) was incorporated on September 30, 2025 as a subsidiary of Hind Rectifiers, with the effective date of business takeover being October 1, 2025. Pursuant to a shareholders' special resolution dated July 29, 2025, the company approved a preferential issue of up to 2,00,000 convertible warrants at ₹1,368.23 per warrant, aggregating ₹27,36,46,000; 25% of the consideration (₹6,84,11,500) was received during the period and parked in fixed deposits of Rs. 6,80,00,000. The company also recognised a one-time exceptional item of ₹19.96 million representing past service cost arising from reassessment of employee benefit obligations following the enactment of the New Labour Codes effective November 21, 2025. Additionally, the company opted for the concessional tax rate of 25.168% under Section 115BAA of the Income Tax Act, 1961 from FY2025-26, resulting in reversal of MAT Credit Entitlement of Rs. 0.11 million.

Standalone Balance Sheet Highlights

The standalone balance sheet as at March 31, 2026 reflects significant growth in the company's asset base (Rs. in Millions):

Parameter: March 31, 2026 March 31, 2025 Total Assets: 6,126.12 4,175.79 Property, Plant & Equipment: 1,466.92 866.45 Trade Receivables: 2,270.97 1,095.50 Inventories: 1,352.80 1,207.32 Total Equity: 2,212.64 1,600.29 Non-Current Borrowings: 325.04 284.00 Current Borrowings: 1,897.76 1,305.81

The declaration was signed by Anil Kumar Nemani, Chief Financial Officer, and the results were approved under the authority of Suramya Nevatia, Chairman & Managing Director (DIN: 06703910), at Mumbai on May 16, 2026.

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