MIC Electronics Stock Hits Upper Circuit After December Quarter Results
The share price of MIC Electronics Ltd, a Hyderabad-based manufacturer of LED display systems and electronic equipment, hit its 5% upper circuit at ₹42.82 on Monday, February 2. This surge followed the announcement of the company's financial results for the December quarter of fiscal year 2026 (Q3FY26).
Q3 FY26 Financial Performance: Revenue Soars, Profit Declines
MIC Electronics reported a mixed set of numbers for the quarter ending December 2025. The company's net sales witnessed an extraordinary year-on-year growth of 667.91%, reaching ₹90.23 crore compared to ₹11.75 crore in the same quarter of the previous fiscal year. Sequentially, revenue jumped 138% from ₹37.89 crore reported in the September 2025 quarter (Q2 FY26).
However, profitability metrics presented a contrasting picture. Net profit for the quarter stood at ₹1.88 crore, marking a 13.36% decline both year-on-year and quarter-on-quarter. This compares to a net profit of ₹2.17 crore reported in both the December 2024 quarter and the September 2025 quarter.
Margin Pressure Despite Revenue Growth
The small-cap company, with a current market capitalisation of approximately ₹998 crore, experienced significant margin compression despite the sharp rise in revenue. This development has raised questions about the sustainability of its recent topline-driven growth trajectory.
Operating margin narrowed sharply to 4.40% from 10.06% in the previous quarter (Q2 FY26). Similarly, the Profit After Tax (PAT) margin contracted to 2.08% from 5.73% on a sequential basis.
MIC Electronics Share Performance Analysis
The stock has demonstrated significant underperformance across various recent timeframes:
- Down 45% over the last one year
- Declined 16% in the past six months
- Slipped 19% over three months
- Down 4.5% in the last one month
However, taking a longer-term perspective reveals a different story. The stock has delivered multibagger returns over the past five years, rising more than 870% during this period.
Recent Business Developments and Contract Wins
MIC Electronics recently secured a substantial domestic contract valued at approximately ₹114.10 crore from the Nava Raipur Atal Nagar Vikas Pradhikaran. This project involves infrastructure development at a common facility centre in Chhattisgarh and spans design, construction, and long-term maintenance over a 10-month period.
This significant win follows another order secured under the Amrit Bharat Scheme. The company received a contract from the Central Railway's Nagpur Division to upgrade telecom assets and passenger facilities across seven railway stations.
These competitive tender victories underscore MIC Electronics' growing presence in two crucial sectors: urban infrastructure development and railway modernisation projects across India.
Company Background and Business Segments
Established in 1988, MIC Electronics Ltd operates across multiple technology domains:
- Manufacturing LED display systems for indoor, outdoor, and mobile applications
- Lighting solutions and telecom equipment
- Railway electronics and software solutions
- Medical equipment including oxygen concentrators and batteries
Disclaimer: This analysis is for educational purposes only. Investors are advised to consult with qualified investment advisors before making any investment decisions.
