Synopsis:
Mazda Ltd. delivered strong YoY performance in Q1 FY26, driven by robust sales growth and improved profitability, though sequential numbers showed a slight decline.
The company is a diversified engineering company engaged in the manufacturing of vacuum systems, pollution control equipment, and food processing machinery, catering to both domestic and international markets
With market capitalization of Rs. 607 cr, the shares of Mazda Ltd are currently trading at Rs. 300 per share, increasing 10% in today’s intraday session making a high of Rs. 318.80 from its previous close of Rs. 289.75 per share.
About the company
Mazda Ltd. is primarily engaged in the manufacturing of engineering products such as vacuum systems, evaporators, pollution control equipment, and food processing machinery. The company serves industries like power, chemical, and food processing, offering both standard and custom-engineered solutions for domestic and international clients.
Mazda Ltd. maintains a strong financial profile with a ROCE of 15.2% and ROE of 11.2%, indicating efficient capital use. The company is almost debt-free and has consistently maintained a healthy dividend payout of 23.5%, reflecting stable returns to shareholders.
Q1FY26 Results
Mazda reported a solid year-on-year (YoY) performance for the Q1FY26. Sales grew by 37% YoY to Rs. 49.6 crore compared to Rs. 36.2 crore in Q1FY25. The company’s profitability improved significantly, with EBIDT rising 88% YoY to Rs. 3.23 crore and net profit increasing by 69% YoY to Rs. 4.91 crore.
However, on a quarter-on-quarter (QoQ) basis, the company saw some moderation. Sales declined by 7.48% from Rs. 53.5 crore Q4FY25, and EBIDT dropped sharply by 59.07% from Rs. 7.89 crore. Net profit also fell by 11.69%, down from Rs. 5.56 crore in the previous quarter. Despite the QoQ dip, the strong YoY growth indicates a solid improvement over the longer term.
Written by Manideep Appana
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