Mirc Electronics Ltd

Wada factory mutual settlement

• Understanding reached with majority permanent workers' union at Kudus, Wada factory for mutual settlement.
• Majority of permanent workmen tendered their resignations and agreed to settlement terms.
• Disclosure made under Regulation 30 of SEBI LODR.

Financial Performance

• Q1 FY27 revenue from operations: Rs 182.4 crores, up 29.5% YoY from Rs 140.9 crores.
• Gross margin: 17.3% vs 16.3% in Q1 FY26; +100 bps.
• Net loss: Rs 14.2 crores vs Rs 12.5 crores in Q1 FY26.
• Branded revenue: Rs 175 crores in Q1 FY27; 35.8% YoY growth.
• LED growth: 56.8% YoY; AC growth: 39.2% YoY; Washing: -1.8% YoY.

Operating Update

• Core categories: AC ~60% of turnover; LED ~25–30%; washing remaining.
• Launched 100-inch QD Mini-LED TV; Onida 2.0 focus on affordable premiumization.
• Diwali strategy: stronger washing-machines range planned.

Channel and Market

• Online channel share: high single-digit; offline remains dominant.
• Distributor + direct-dealer reach ~4,000+ stores; expansion in 6–12 months.
• Geographic presence: strong in Tier-2/3 markets; states include Gujarat, Punjab, Tamil Nadu, Maharashtra, West Bengal.
• Back-end expansion plan: 800–1000 outlets target by end of this financial year.

Balance Sheet and Liquidity

• As of June, fund-based limits almost not utilized; equity infusion addressed near-term debt.
• Borrowing balance around Rs 38-odd crores; cash parked in mutual funds for near-term needs.
• Asset monetization: not currently on the table; review cash flows and timing.
• Wada plant: not planned for shutdown; potential optimal-utilization to be evaluated.
• Net working capital days: 30–45 on average; capex is small and internally funded.

Q&A Highlights

• Pricing strategy: stay competitive while protecting margins; manage value-chain costs.
• Retail expansion: aim to double reach in 6–12 months; 800–1000 outlets targeted by FY-end.
• Turnaround trajectory: momentum expected to continue; bottom line improves with scale.
• Contract manufacturing: focus on branded business; asset-light approach; compressor JV not planned now.
• PLI status: government program still on; not actively pursuing; rely on OEM/ ODM partners.

Guidance

• Momentum to continue for rest of FY27 and the next year; qualitative outlook.

Meeting Details

• Conference call held on 10 August 2026; time not specified.
• Group investor conference call; virtual meeting.
• Event: investor conference call organised by Onida Electronics Limited.
• Key company participants: Chairman and Managing Director; senior management.
• Purpose: discuss quarterly performance for quarter ended 30 June 2026.
• Audio recording of the conference call is available.

Financial highlights

• Revenue from operations rose 29.5% YoY to ₹182.4 crore.
• Total income grew 30.6% YoY to ₹184.8 crore.
• Overall gross margin improved to 17.3% from 16.3%.
• Branded gross margin increased to 17.9% from 17.0%.

Operational highlights

• LED televisions growth 56.8% YoY driven by new products and promos.
• Air conditioner sales grew 39.2% YoY reflecting seasonal recovery.
• Branded sales grew 35.8% YoY.

Corporate actions

• Completed corporate name change to Onida Electronics Limited.

Financial results

• Unaudited standalone Q1 FY2026-27 results approved; Limited Review Report attached.
• Limited Review: unmodified opinion on quarter ended 30 June 2026.

ESOP allotment and capital change

• Allotment of 1,35,480 equity shares under ESOP 2023 at Rs 14.10 per share.
• Paid-up capital increased to Rs 36,95,27,844 comprising 36,95,27,844 shares.
• ESOP grant of 3,11,00,000 options during quarter.

Name change

• Name change from MIRC Electronics Limited to Onida Electronics Limited completed.

Operating segment

• Single Consumer Durables segment; no separate reportable segment.

Regulatory disclosures

• Annexure B provides ESOP details: exercise price Rs 14.10, ISIN INE831A01028, 1,35,480 shares.

Auditor's review

• Limited Review by M M Nissim & Co LLP; unmodified opinion; no material emphasis of matter.

Dematerialisation/rematerialisation status

• Securities received for dematerialisation were confirmed to depositories and listed on the stock exchanges.
• Physical certificates received for dematerialisation were mutilated and cancelled after verification; ownership updated in records.
• Rematerialisation requests were not received during the period.

Regulatory context

• Disclosures under Regulation 30 for the preferential issue of convertible equity share warrants.

Valuation and dilution details

• Valuation report dated May 16, 2026 obtained to determine the fair value for warrant conversion.
• ESOPs considered in the fully diluted post-issue shareholding; earlier figures did not include ESOPs.
• Post-issue shareholding shows promoters 35.70% and public 64.30%; total shares 41,91,73,299.
• Total pre-issue shares were 36,93,92,364; post-issue (indicative) 41,91,73,299.

Ownership and beneficiaries

• Annexures identify proposed allottees and their ultimate beneficial owners.
• Annexure-B lists 13 proposed allottees with identified ultimate owners.

Governance and regulatory status

• No change in board composition or control due to the preferential issue.
• NSE issued a requirement letter for in-principle approval; final outcome not disclosed.

Appointments/Resignations

• Appointment of Jayesh Gandhi as Independent Director, Additional for 5 years from 04 July 2026, subject to approval.
• Designation change: Kaval Mirchandani from MD to Whole-time Director, effective 04 July 2026, subject to member approval.
• Appointment of Gunjan Srivastava as CEO and Whole-time MD from 04 July 2026, subject to member approval.
• Resignation of Shirish Suvagia from Whole Time Director and CFO effective July 03, 2026.
• Manish Desai appointed CFO and KMP from 04 July 2026.
• Manish Desai appointed Additional Director and WTD, KMP for 3 years from 04 July 2026, subject to approval.

ESOP Grant

• Approved grant of 12,50,000 ESOPs under MIRCE Electronics Plan 2023; 30% discount to June 25, 2026 closing price.
• Vesting upon milestones with minimum one-year vesting; exercisable within two years post vesting.