Small-Cap Stock Completes Rs 53.8 Cr Investment In Dubai-Based Subsidiary After Q2 Results

MIC Electronics Limited has declared that the investment procedure in its step-down subsidiary, Cellular Galaxy Electronics LLC, Dubai, had been successfully completed. The Management Committee of the Board noted that SOA Electronics Trading LLC, a fully owned subsidiary of MIC Electronics, has invested Rs 53.8 Cr in Cellular Galaxy Electronics LLC, in accordance with the company's regulatory filing under the SEBI (LODR) Regulations.

MIC's subsidiary now holds 99% of the paid-up capital of the step-down subsidiary, and the investment was made at arm's length and this strategic move strengthens MIC Electronics' global footprint and business diversification in the Middle East market, according to the company.

The competent authorities in Dubai have issued all requisite approvals and documents for the investment. The Dubai-based entity, incorporated on August 17, 2023, operates in the electrical and electronic appliances trading sector and reported a turnover of AED 37.34 million for FY 2024.

A new registration certification for MIC Electronics Limited's microprocessor controller for roof-mounted AC package units used in LHB and double-decker coaches has been issued by the Ministry of Railways' Research Designs and Standards Organization (RDSO). The approval, linked to item ID 3100369 and request ID 25111 dated July 31, 2024, marks a significant milestone for the company in strengthening its position in the railway automation and equipment industry. According to MIC Electronics' regulatory filing on October 20, the "microprocessor controller for roof-mounted AC package unit for LHB coaches and double-decker coaches" has been approved.

From a financial standpoint, the company's September 2025 net sales of Rs 37.89 crore represented a rise of 38 percent over Rs 27.46 crore reported in the same quarter of the previous fiscal year. The net profit for the September 2025 quarter was Rs. 2.17 crore, which was 1.98% more than the net profit for the September 2024 quarter, which was Rs. 2.13 crore. From Rs. 3.87 crore in Q2FY25 to Rs. 4.34 crore in Q2FY26, EBITDA grew by 12.14%.

Although sales growth over the previous 10 years has been negative (-5%) over a longer time frame, 5-year compounded sales growth is robust at around 119%, and 3-year growth is roughly 28%, according to Screener statistics. Although the TTM profit (trailing twelve-months) statistic indicates a decline of 83%, profit growth has also demonstrated a 10-year CAGR of about 30% and a 5-year rise of roughly 19%.

Recently Brickwork Ratings awarded MIC Electronics Limited a credit rating for its bank loan facilities valued at Rs 74.23 crore. The company's short-term non-fund-based bank guarantee facilities were rated BWR A4+, while its long-term fund-based facilities, such as term loans and cash credit, were rated BWR BB with a stable outlook. These ratings reflect the company's current financial position and repayment capability, as assessed by the agency. The rating is valid for 12 months from October 31, 2025, and will remain under surveillance during this period.

MIC Electronics Limited announced the results of its November 5, 2025, board meeting. The board decided to raise up to Rs 250 crores through qualified institution placements (QIPs) or other acceptable methods, and up to USD 15 million through the issuance of Foreign Currency Convertible Bonds (FCCBs), both subject to regulatory and shareholder approval. Furthermore, the Board accepted the draft EGM Notice and designated Mr. Y Ravi Prasada Reddy as the scrutinizer for the Extra-Ordinary General Meeting (EGM), which is set for Monday, December 1, 2025, at 11:45 a.m. (IST).

MIC Electronics Ltd has officially announced the voting results of its 1/2025-26 Extra-ordinary General Meeting (EGM), held on December 1, 2025. Through both in-person voting at the venue and remote electronic voting, every resolution included in the EGM notice was passed with the necessary majority. Two significant special resolutions were approved by shareholders: one authorized the issue of Foreign Currency Convertible Bonds (FCCBs) up to USD 15 million through private placement, and the other approved funding requirements of up to Rs 250 crores through Qualified Institutions Placement (QIP). A total of 194 members participated in the voting process, including 148 by e-voting and 46 through physical ballots.