Detailed Narrative
Q4 FY26 Performance and Turnaround
Mold-Tek Technologies reported a significant turnaround in Q4 FY26, achieving a profit of ₹2.28 crores compared to a loss of ₹1.6 crores in Q4 FY25. This was accomplished despite a substantial mark-to-market (MTM) loss of ₹4 crores due to rupee depreciation. While the full year PAT for FY26 stood at ₹10.09 crores, a 17% drop from ₹12.16 crores in FY25, the Q4 results indicate an improving trend, with EBITDA rising from a negative ₹0.42 crores in Q4 FY25 to ₹3.79 crores in Q4 FY26.
Strategic Restructuring of MES Division
The company undertook a major restructuring of its Mechanical Engineering Services (MES) division, specifically the BIW auto sector. This segment had been bleeding the company for 1.5-2 years, resulting in an annual loss of approximately ₹7 crores. By the end of March 2026, the team was downsized from 160 to 60 people, a move expected to add ₹7-8 crores back to profitability from FY27. Conversely, the MES poles and towers and electrical substation work in the United States is rapidly expanding, with the team growing from 45-50 to 80 people.
Growth in Civil Work and CES Orders
The civil work on hand has shown substantial improvement, increasing from $4 million at the beginning of the last year to $5 million by the end of Q4 FY26. This growth reflects enhanced execution and a higher quantum of work in the Civil Structural Division. Additionally, CES (Civil Engineering Services) orders on hand have seen a significant jump of 60-70%, growing from $2.84 million in June 2024 to $5 million currently, contributing positively to the overall order book.
Beryl Acquisition and Integration Progress
The acquisition of Beryl in November 2025 has added residential building design, inspection, and expert services to Mold-Tek's portfolio. Beryl contributed ₹23 crores in turnover over its first five months (November 2025 to March 2026), though it incurred a loss of ₹0.7 crores in Q4 FY26 due to the typical low workload during winter. Management reported zero attrition from Beryl's 40-member team since the acquisition, and integration efforts include training Indian teams to support Beryl's design capabilities, with 30% of the acquisition monies held in lock-in for a three-year retention period.
Evolution from Detailing to High-Value Design Services
Mold-Tek has strategically evolved its service offerings from low-end Pre-Engineering Metal Buildings (PEMB) to structural steel detailing, which now accounts for 90% of civil services revenue. The company is actively expanding into higher-value structural design services, which currently represent 8-10% of civil revenues. The goal is to increase design services to 30-40% of total revenues within the next 3-4 years, pursuing both organic growth and potential acquisitions in this segment.
Financial Outlook and Margin Targets for FY27
Management projects a top line of ₹250 crores for FY27, building on the Q4 FY26 run rate of ₹59 crores. The EBITDA margin is targeted to improve from the current 11% to at least 15%. Standalone engineering services are expected to grow by 15-20% with an EBITDA margin of 15-16% in FY27. Furthermore, a 20% improvement in productivity is targeted for FY27, which is anticipated to significantly boost the company's bottom line.
Hedging Policy Revision and Nashik Office Savings
Following a ₹4 crore MTM loss in Q4 FY26 due to rupee depreciation, Mold-Tek has revised its hedging policy to limit forward contracts to 25-50% of turnover, down from 100%. Starting this financial year, operational EBITDA will be reported separately from MTM gains/losses for greater transparency. Additionally, the company is developing a new office in Nashik, expected to be operational by the end of FY27, which is projected to generate annual cost savings of ₹2-2.5 crores from FY27-28.