Shares of Hyderabad-headquartered MIC Electronics Limited (MICEL) gained nearly 7 per cent on Wednesday amid a rally in the benchmark indices Sensex and Nifty. Indian benchmark indices mirrored a rally in global markets and a drop in crude oil prices below the USD 100 per barrel mark, amid hopes of renewed talks between the United States and Iran. The 30-share BSE Sensex jumped 1,422.85 points to 78,270.42 in early trade. The 50-share NSE Nifty climbed 438.25 points to 24,280.90. Amid this, the stock started the trading session in the green at Rs 39.09 against the previous close of Rs 38.45 on the BSE. It further advanced to touch a high of Rs 41.08, representing a gain of 6.84 per cent. Last seen, the stock was trading at Rs 40.72, and the market cap of the company stood at Rs 981.40 crore.
Received LoA from Indian Railways
The company recently announced in a filing that it has received a Letter of Acceptance (LOA) from the Sambalpur Division of the East Coast Railway Zone of the Indian Railways. The order involves the installation of CIB and TIB systems at railway stations. The total cost of this project is approximately Rs 2.12 crore. Work will be carried out on various platforms at stations such as BGBR, NPD, JNRD, AMB, and RGL, strengthening the company’s order book.
Sales increased by 80% in Q3
Hyderabad-based LED display and electronic components manufacturer MIC Electronics Ltd reported mixed results for Q3 FY26. Net sales rose 80 per cent year-on-year to Rs 90.23 crore, up from Rs 50 crore a year earlier. However, net profit fell 13.36 per cent to Rs 1.88 crore.
Despite strong revenue growth, the company’s profitability is clearly under pressure. Operating margins declined to 4.40 per cent in Q2 FY26 from 10.06 per cent, while PAT margins also fell to 2.08 per cent from 5.73 per cent. The stock has declined nearly 45 per cent in the past year, while the Sensex has gained during the same period. This has raised investors’ concerns about whether the company’s strong sales growth will translate into sustainable profits in the long run.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
