Stock Below Rs 100 Secures Two Data Centre Assignments, Reports Highest-Ever Quarterly Profit; Watch Out!

Mold-Tek Technologies has been widening its engineering services portfolio in the US through civil, structural, residential and utility-related assignments, while reducing its dependence on automobile engineering. The strategy is beginning to show in profitability, with the company reporting its highest-ever quarterly profit for the quarter ended September 30, 2026.

Consolidated revenue rose 51 per cent YoY to Rs 60.81 crore in Q2 FY27, while profit after Tax (PAT) nearly trebled to Rs 9.62 crore from Rs 3.24 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased to Rs 14.58 crore from Rs 5.96 crore, lifting the EBITDA margin by 9 percentage points to 24 per cent.

The improvement extended through the first half. Consolidated revenue for H1 FY27 grew 63.70 per cent YoY to Rs 120.35 crore, while PAT rose about 4.8 times to Rs 18.62 crore. The first-half EBITDA margin improved to 24 per cent from 11 per cent, while PAT margin rose to 15 per cent from 5 per cent. Return on capital employed stood at 34.08 per cent.

Sequentially, Q2 revenue increased 2.13 per cent from Rs 59.54 crore in Q1 FY27. EBITDA rose 4.85 per cent and PAT increased 6.83 per cent, indicating that the sharp YoY improvement was accompanied by continued QoQ profit growth. Mold-Tek said operational profit excluding foreign exchange gains and losses rose to Rs 11.42 crore from Rs 10.39 crore.

The Civil and Structural Division had work-on-hand of about USD 4 million at the time of the announcement. During Q2, it secured two data centre assignments worth about USD 0.5 million each and a convention centre project worth about USD 0.5 million from a Dubai-based fabricator. The company is also building teams for estimation, modelling and detailing, while pursuing opportunities in Semiconductor facilities, bridges and pre-engineered metal buildings.

Beryl Engineering has broadened Mold-Tek’s US offering into residential engineering, permits, plan reviews and building inspection. The Mechanical Division is simultaneously pursuing transmission and distribution, plant engineering, special-purpose machinery, utility infrastructure and data centre engineering, reducing its earlier concentration in Body-in-White engineering services.

As of 3:55 pm on November 5, 2026, Mold-Tek Technologies shares were trading at Rs 101.95, down 1.03 per cent from the previous close. The stock was about 11.3 per cent below its 52-week high of Rs 114.95, while remaining well above its 52-week low of Rs 51.50. The company’s market capitalisation stood at Rs 593.44 crore. Over one year, the stock had gained 4.5 per cent, compared with a 4.13 per cent decline in the BSE 500.

What This Means for Investors

The quarter strengthens the case that Mold-Tek’s margin recovery is being supported by execution and business mix rather than revenue growth alone. Civil and Structural work-on-hand, data centre wins and expansion into higher-value design, permit and inspection services improve near-term revenue visibility. The 24 per cent EBITDA margin and 16 per cent Q2 PAT margin also mark a substantial improvement over the prior-year base.

The development is potentially supportive for the company’s medium-term growth strategy, particularly if US civil, utility and data centre assignments convert into repeat business. The key test will be whether margins remain resilient as Beryl expands and the Mechanical Division builds newer service lines. Beryl’s integration and the need to recruit and train specialised engineering talent remain important execution variables, especially as the company seeks to scale higher-value US projects.

Disclaimer: The article is for informational purposes only and not investment advice.