Mold-Tek Technologies Limited

Mold-Tek Technologies reported a strong Q2 FY26, with revenue increasing by 20.85% to INR 40.23 crores from INR 33.29 crores in the prior year. EBITDA saw a significant jump of 144.5%, reaching INR 5.96 crores from INR 2.44 crores. Profit After Tax (PAT) also surged by 376.47% to INR 3.24 crores from INR 0.68 crores, demonstrating strong operational leverage despite geopolitical headwinds^🌐.

A key highlight was the acquisition of Beryl Project Engineering Company, a 40-member US-based firm, for a purchase consideration of $2.7 million. Beryl, which reported revenues of $5.6 million and a profit of $0.5 million in its last financial year, specializes in residential civil engineering, permits, and approvals. This acquisition expands Mold-Tek's service offerings beyond industrial and commercial detailing, with account consolidation commencing from November 1, 2025.

The Beryl acquisition is expected to create significant synergies, allowing Mold-Tek to expand into residential and semi-commercial buildings in the US. Beryl's expertise in permits and AI-powered plan review, combined with Mold-Tek's detailing capabilities, will enable expansion from 2 to 5-6 counties within six months. Management anticipates outsourcing 25-30% of Beryl's work to India, aiming to boost Beryl's EBITDA margins from the current 7-8% to 15-20% in the next few quarters^⏳, alongside 20-25% top-line growth.

The US construction industry, particularly the pre-engineered buildings (PEB) segment, has faced challenges due to geopolitical situations and tariff confusion. This uncertainty has prevented the company from pushing certain projects, impacting performance compared to the previous year. However, management noted that traction is slowly returning, with civil engineering work on hand now exceeding $4.5 million and MES work on hand at $0.6 million.

The mechanical engineering segment is showing green shoots, especially in poles, towers, and distribution utility services, driven by demand from data centers, EV plants, and EV charging infrastructure. Mold-Tek plans to double the capacity of its poles and towers division from 60-70 resources to over 100-120 people within the next six months. The company also intends to enter higher-end services like transmission tower and conductor design within a couple of quarters.

Mold-Tek is leveraging AI, particularly through Beryl's developed tools, to streamline routine engineering tasks, plan reviews, and permit processing. While professional engineers are still required for certification, AI is expected to significantly reduce time spent on routine jobs, enhancing efficiency and potentially contributing to margin improvement. The AI platform will be accessible to Mold-Tek's team, enabling more permits and approvals to be processed.