Brady & Morris Engineering reported a significant decline in FY26 performance, with profit after tax falling to Rs 5.57 crore from Rs 24.01 crore in the previous year. The board has skipped dividends to conserve cash and is seeking shareholder approval for a Rs 300 crore borrowing and guarantee facility from its holding company to support future expansion.
Brady & Morris Engineering FY26 Profit Declines to Rs 5.57 Crore
Profit After Tax (PAT) stood at Rs 5.57 crore in FY 2025-26, down from Rs 24.01 crore in the previous year. Gross income for the fiscal year fell to Rs 75.90 crore, compared to Rs 90.90 crore in FY 2024-25.
Reader Takeaway: Weak FY26 performance due to market headwinds; focus shifts to Rs 300 crore borrowing plan for recovery.
What just happened
Brady & Morris Engineering has released its annual results for FY 2025-26, revealing a contraction in financial metrics. The company reported an Earnings Per Share (EPS) of Rs 24.78, a sharp decline from the Rs 106.73 reported in FY 2024-25. The board has decided not to recommend a dividend for the fiscal year, prioritizing cash conservation. Additionally, the company announced its 80th Annual General Meeting is scheduled for September 26, 2026.
Why this matters
The company attributed its muted performance to geopolitical shifts and difficult market conditions. Investors should note that the previous year’s profit included an exceptional income gain of Rs 19.32 crore, which exaggerated the year-on-year variance. The proposed Rs 300 crore in corporate guarantees and borrowing facilities from W. H. Brady And Company Limited is intended to provide the necessary liquidity for project execution and business growth over the next decade.
Governance and Management Update
Following the passing of Director Ms. Mita Jha, the company has appointed Mrs. Chitralekha Hiremath as an Independent Director. In the secretarial department, Mr. Sanyo Rodrigues has taken over as the Company Secretary and Compliance Officer effective June 01, 2026.
Risks to watch
Management highlighted that the business remains vulnerable to inflationary pressures, rising raw material costs, and broader economic volatility. The heavy reliance on borrowing facilities from the holding company necessitates monitoring of the company's leverage and debt-servicing capabilities moving forward.
What to track next
Shareholders will be looking for signs of operational recovery in FY 2026-27. Management has emphasized a strategic focus on productivity improvements and revenue growth to navigate the current competitive environment.