MIC Electronics Share Price Climbs on Securing Major Indian Railways Contract
MIC Electronics Limited witnessed a positive movement in its stock price during Wednesday's trading session, registering a gain of nearly 1%. This uptick followed the company's official announcement of receiving a significant Letter of Acceptance (LoA) from Indian Railways. The stock reached an intraday high of ₹42.32, marking a 1.2% increase from its previous closing price of ₹41.82.
Recent Stock Performance and New Order Details
In the short term, MIC Electronics' share price has demonstrated resilience, appreciating by 2.67% over the last five trading sessions and approximately 7% over the past month. However, a broader view reveals challenges, with the stock declining by 11.30% over six months and a substantial 40% over the last year.
The catalyst for the recent gain is a new contract awarded by the Howrah Division of the Eastern Railway Zone. The contract, valued at ₹4.45 crore (₹4,45,01,602.40), involves the installation of Coach Indication Boards (CIB) and Train Indication Boards (TIB) at multiple railway stations including PRGR, SKIP, BZLE, SALE, MGAE, SDI, MRR, and RJG. The company has been allotted a six-month timeframe to execute this order.
This award comes shortly after another recent success. Earlier in the week, MIC Electronics secured a separate LoA from the Firozpur Division of the Northern Railway Zone. That contract pertains to providing a coach guidance and public address (PA) system at SVDK and SINA stations under the Jammu Division.
Analysis of Q3 FY26 Financial Results
The Hyderabad-based manufacturer of LED display systems and electronic equipment reported its financial results for the December quarter of Fiscal Year 2026, presenting a mixed picture.
The company's revenue performance was exceptionally strong. Net sales skyrocketed by 667.91% year-on-year to ₹90.23 crore, a dramatic increase from ₹11.75 crore in the same quarter of the previous fiscal year. Sequentially, revenue also saw impressive growth, rising 138% from ₹37.89 crore recorded in the September quarter (Q2 FY26).
However, profitability told a different story. Net profit for the quarter stood at ₹1.88 crore, reflecting a decline of 13.36% both compared to the year-ago period (₹2.17 crore in December 2024) and the preceding quarter (₹2.17 crore in September 2025).
The small-cap firm, which commands a market capitalisation of ₹998 crore, is facing evident margin pressures. The operating margin contracted sharply to 4.40% from 10.06% in Q2 FY26. Similarly, the Profit After Tax (PAT) margin declined to 2.08% from 5.73% on a sequential basis, indicating rising costs or pricing pressures despite the surge in top-line growth.
Disclaimer: This financial news article is prepared for informational and educational purposes only. It is not intended as investment advice. Readers are strongly advised to consult with a qualified investment advisor before making any financial decisions.
