Creative Newtech reported strong FY26 results with a 50.85% jump in income to Rs 2,717.51 crore and a 32.35% increase in net profit to Rs 70.29 crore. Driven by demand for brands like Honeywell and Samsung, the company also announced a Rs 0.50 dividend and a new 2-lakh share ESOP scheme. Investors should note the rising debt-to-equity ratio of 1.08 as the firm expands into government sectors and cybersecurity.
Creative Newtech FY26 Profit Climbs 32% to Rs 70.29 Crore
Income reached Rs 2,717.51 crore with EPS rising to Rs 41.04 per share.
Reader Takeaway: Strong revenue growth and government project wins are tempered by rising debt levels and auditor observations.
What just happened
Creative Newtech Ltd has declared its financial results for FY 2025-26, showcasing a strong performance across key financial metrics. Total income for the year climbed to Rs 2,717.51 crore, representing a 50.85% increase over the previous year's Rs 1,801.47 crore. Profit after tax (PAT) reached Rs 70.29 crore, while the company’s Earnings Per Share (EPS) stood at Rs 41.04.
Why this matters
The growth underscores the company’s ability to scale through its diverse brand partnerships, including Honeywell, Samsung, and ViewSonic. Beyond core trading, the firm has made strategic inroads into the government sector, securing orders worth Rs 54.15 crore for disaster management kits and surveillance equipment. These results signal a shift toward higher-growth technology segments such as cybersecurity and drones.
Corporate Actions
The Board has recommended a final dividend of Re 0.50 per share (5% of face value) for FY26. Furthermore, the company has proposed the 'Creative ESOP Scheme 2026', offering up to 2,00,000 stock options to retain talent. Shareholders will also vote on a related party transaction involving trade with its Hong Kong-based subsidiary, Secure Connection Limited, valued up to Rs 750 crore.
Risks to watch
The company reported consolidated debt of Rs 324.26 crore, pushing the debt-to-equity ratio to 1.08. Investors should note that the statutory auditors pointed out delays in certain disclosures and discrepancies in stock statements provided to lenders. Management stated these issues are currently being addressed.
What to track next
Watch for the outcome of the upcoming Annual General Meeting regarding the dividend payout and the approval of the ESOP scheme. Additionally, continued monitoring of the debt-to-equity ratio is advised as the company scales its operations.