Mehul Telecom FY26 Revenue Hits Rs 200 Crore

Net Profit Rises 71% to Rs 9.96 Crore

Reader Takeaway: Strong top-line growth driven by retail expansion, though high geographic concentration in Gujarat poses a long-term risk.

What just happened

Mehul Telecom Limited has released its financial results for the year ended March 31, 2026. Following its BSE SME listing in April 2026, the company reported a significant 73% year-on-year rise in revenue to Rs 200.12 crore. Net profit for the period climbed 71% to Rs 9.96 crore, while Diluted EPS rose to Rs 13.07 compared to Rs 7.99 in the previous fiscal year.

Why this matters

The financial performance highlights the effectiveness of the company’s hybrid retail model, which now encompasses 80 stores—comprising 6 company-operated outlets and 74 franchise-operated locations—spread across 14 districts in Gujarat. The expansion has improved the company's EBITDA margins to 6.82%, reflecting operational leverage as the business scales.

The backstory

Since its listing, Mehul Telecom has opted to retain all profits to fund business operations rather than declaring a dividend. The board has also scheduled its 3rd Annual General Meeting for September 30, 2026, to address director re-appointments and the appointment of a new secretarial auditor.

Risks to watch

Investors should note the company's heavy geographic reliance. Currently, over 75% of revenue is derived from just two districts: Rajkot and Morbi. This high concentration makes the company's financial stability sensitive to localized economic shifts in Gujarat.

What to track next

Watch for the company's ability to maintain its growth trajectory as it attempts to expand its footprint outside its established strongholds. Capital allocation remains critical, as the decision to skip dividends suggests continued aggressive reinvestment into the retail store network.