Mehai Technology Ltd

Acquisition at a glance

• Target: Hi-Tech Services Private Limited, an Indian IT/ITeS data processing services company.
• Acquisition of 100% of issued and paid-up equity capital (28,030 shares).
• Total consideration ₹4.5 crore in cash.
• Not a related-party transaction; promoter group has no interest.
• Aims to expand business and gain control over data processing services.
• Regulatory approvals not required.
• Completion subject to conditions precedent and transfer formalities per SPA dated 12 Oct 2026.
• Background: Indian private company; CIN U72300WB1984PTC037826; turnover NIL (FY 2023-24 to 2025-26).

Dematerialisation/Rematerialisation status

• No dematerialisation/rematerialisation requests were received during quarter ended 30 September 2026.

Rating Action

• Brickwork assigns BBB- long-term rating with Stable outlook to Mehai Technology bank facilities totaling Rs 69 crore.

Instruments Rated

• Fund Based - Long Term: Rs 67.00 crore, BBB- / Stable.
• Non-Fund Based - Long Term: Rs 2.00 crore, BBB- / Stable.

Agency & Rationale

• Agency: Brickwork Ratings India Private Limited (BWR).
• Operational track record and experienced management support rating.
• Diversified operations across electronics trading, IT services, and government projects.
• Tangible net worth Rs 219.23 crore; Debt/TNW 0.24x.
• ISCR 4.14x; DSCR 3.51x (FY26).
• Revenue FY26 Rs 101.85 crore; PAT Rs 7.36 crore.
• Geographic concentration: WB about 98% of FY26 revenue.
• Promoter stake diluted to 36.45% post-rights; monitoring.
• Liquidity adequate; net cash accrual FY26 Rs 7.60 crore.
• Projected net cash accrual FY27 about Rs 20.50 crore.
• ESG profile: Satisfactory.

Rating Sensitivities

• Upward: scale growth, margin expansion, and TNW accretion.
• ISCR >4x and DSCR >3x with stable liquidity.
• Downward: revenue/profitability decline; ISCR <2x or DSCR <1.5x.
• Promoter stake remains unchanged; no further dilution.

Outlook & Material Changes

• Outlook: Stable.
• New initial rating assignment; no prior rating available.

Financial Highlights

• FY26 revenue Rs 101.85 crore; EBITDA Rs 12.18 crore; PAT Rs 7.36 crore.
• Tangible Net Worth Rs 219.23 crore; Total Debt/TNW 0.24x; Current ratio 2.69x.
• ISCR 4.14x; DSCR 3.51x.

AGM details

• AGM held on 29 September 2026 at 01:00 IST through VC/OAVM.
• 54 members attended; no proxies due to VC/OAVM.
• Meeting duration 01:00 to 01:53 IST.
• Remote e-voting and Insta-Poll conducted; results to be announced after Scrutinizer's Report.
• Secretarial Auditor expressed unqualified opinion for FY 2025-26.

Resolutions presented

• Adopt standalone and consolidated financial statements for the year ended March 31, 2026.
• Re-appoint Rekha Bhagat as director, retiring by rotation.
• Appoint S.K. Basu & Co as statutory auditors for five years; fix remuneration.
• Appoint Ankita Dey & Associates as Secretarial Auditor for five years.

Voting status

• Voting results will be communicated after the Consolidated Scrutinizer's Report.
• Results will be submitted to stock exchanges and placed on the company's website.

Mehai Technology Limited trading window closed from October 1, 2026 until 48 hours after the declaration of the unaudited standalone and consolidated financial results for the quarter ended September 30, 2026.

Financial performance

• Standalone total income Rs 10,307.64 lakh; up from Rs 10,006.84 lakh.
• Standalone PAT Rs 735.60 lakh; up 2.48% YoY.
• Consolidated total income Rs 12,541.95 lakh; up 4.87%.
• Consolidated PAT Rs 774.91 lakh; up 2.48%.
• EPS basic Rs 0.10; EPS diluted Rs 0.10 (Standalone/Consolidated).
• Dividend not proposed for FY2025-26.
• Standalone net worth Rs 21,923.03 lakh.

Capital structure & capital raising

• Issued capital rose to Rs 74.86 crore via warrants and right issue.
• Total issued equity capital: 7,486.20 lakh shares.
• Four equity issuances: warrants converted; one rights issue completed.

Operations and product segments

• Consolidated segment revenue: Products Rs 3,161.80 lakh; Services Rs 7,023.19 lakh.
• Total revenue from operations (consolidated) Rs 10,184.99 lakh.
• Management notes strong order book and growth momentum.

Corporate actions & AGM

• 13th AGM scheduled for 29 September 2026 via VC/OAVM.
• Notice/Explanatory Statement issued; e-voting from 26 to 28 September 2026.
• Alteration of Main Object Clause approved on 8 May 2026; broadens scope to IT, energy, pharma, etc.

Governance & board

• Board size eight; MD Jugal Kishore Bhagat; Aditi Maity appointed Independent Director on 25 Sep 2025.
• Priya Rudra resigned as Independent Director w.e.f. 6 Oct 2025.
• KMP changes: Sandipan Lai appointed Company Secretary 5 Mar 2026; Dilip Kumar Duari CFO.
• Audit/Nomination committees active; new Secretarial Auditor Ankita Dey & Associates proposed (5-year term).

Audits & internal controls

• Proposed Statutory Auditor: M/s S. K. Basu & Co for 2026-31; current Bijan Ghosh & Associates until AGM.
• Secretarial Auditor: M/s Ankita Dey & Associates; remuneration Rs 30,000 for 2025-26.
• Internal Auditor: Neha D Jain & Co; no material weaknesses reported.
• MR-3 Secretarial Audit flagged reconciliation of share capital; recommends year-wise records.

Related party transactions & compliance

• Related party transactions disclosed; arm's-length; details in Form AOC-1/2 annexures.
• Key related parties include Dynamic Services & Security Limited, Destiny Logistics, Bharat Battery, KBS Corporate, etc.

CSR & risk management

• CSR expenditure Rs 5.45 lakh; average net profit Rs 2.72 crore; CSR obligation fulfilled.
• CSR activity: donation to Yug Sanskriti Nyas Charitable Trust.
• Risk management policy in place; board reviews risk and liquidity plans.

Subsidiaries & consolidation

• Mehai Aqua Private Limited is a subsidiary; KBS Corporates Private Limited exited on 30 Sep 2025.
• Annexure I/II discloses subsidiary/associates; Mehai Aqua turnover and profits disclosed.

Outlook & important risks

• Altered MOA broadens opportunities in IT, energy storage, and related sectors.
• Industry tailwinds from electronics manufacturing growth; competition and supply-chain fragilities cited as risks.

AGM Details

• AGM on 29 Sep 2026 at 1:00 PM IST via VC/OAVM.
• E-voting window: 26 Sep 2026 9:00 AM to 28 Sep 2026 5:00 PM.
• Record date for voting: 22 Sep 2026.
• Register/transfer books closed 04-23 Sep 2026 to 28 Sep 2026.

Resolutions Put to Vote

• Adopt standalone and consolidated financial statements for year ended 31 Mar 2026.
• Re-appoint Rekha Bhagat as Non-Executive Director, liable to retire by rotation.
• Appoint M/s S. K. Basu & Co as Statutory Auditors for five years.
• Appoint Ankita Dey & Associates as Secretarial Auditors for five years.

Voting Results

• Voting results not disclosed in this filing.

Dividend

• Dividend not proposed for FY 2025-26.

Director Changes

• Priya Rudra resigned as Independent Director on 6 Oct 2025.
• Aditi Maity appointed Independent Director from 01 Sep 2025; regularization for 5-year term from 25 Sep 2025.
• Rekha Bhagat to be re-appointed as Non-Executive Director (liable to rotate).

Auditor Appointments

• Appointment of M/s S. K. Basu & Co as Statutory Auditors for five years.
• Appointment of Ankita Dey & Associates as Secretarial Auditor for five years; Rs 30,000 for 2025-26.

Material Related Party Transactions

• Related party transactions occurred in ordinary course; approvals under RPT policy.
• Counterparties include entities in which KMPs have influence and relatives of directors.
• Transactions include director remuneration, goods sales, and service purchases; disclose values in Form AOC-2.

Other Material Approvals

• Capital-raising through warrants, preferential allotments, and right issue completed in 2025.
• Alteration of MOA main object clause approved to broaden business scope.

AGM notice and online access

• 13th AGM scheduled Sept 29, 2026 at 11:00 IST via VC/OAVM.
• Electronic copies of AGM notice and annual report sent to shareholders with registered email IDs.
• Shareholders without registered emails will access documents online via the company site.
• Notice and annual report available at https://mehaitech.co.in/site_content/annual_reports.
• Shareholders should update KYC with DP/RTA for electronic or physical shareholding.
• FY 2025-26 is the financial year covered by the AGM materials.