1. Toys Phase 2 - export-focused injection-molding plant - A \~₹100 crore investment for battery-operated ride-ons and role-play toys is planned to begin in H2 FY26, with setup taking 6-10 months, and the project qualifies for the ₹100 crore slab under the upcoming PLI scheme for toys. Phase 2 is built primarily for export markets, where US tariffs of 145% on Chinese toys versus 10% on India create a structural cost advantage.
2. Air filtration - MANN+HUMMEL exclusive licensing - Subsidiary MRH Technologies holds a 10-year exclusive manufacturing and distribution licence for MANN+HUMMEL air purifiers in India, with a commercial launch targeted in FY26. IIT Delhi trials demonstrated over 80% reduction in PM levels, and with 5,619 schools in Delhi alone each representing a ₹60-70 lakh opportunity, this opens a new, uncorrelated revenue stream.
3. Toy export tailwinds from tariff realignment - The US has imposed a 145% tariff on Chinese toys while India faces only 10%, with bilateral talks potentially reducing India's rate to 5-6%, and zero-duty access already exists under pre-trade agreements with the UAE, Middle East and Australia. The company is in active discussions with large US and European toy companies for JVs and contract manufacturing, positioning it to capture orders as global brands accelerate the China-plus-one shift.
4. Automotive - new non-CV customer wins - Partnerships with Vestas (windmill components) and Indocool, plus a strategic order from Escorts for construction and agricultural verticals, are expected to contribute meaningfully from FY26. These wins diversify the auto segment beyond commercial vehicles, insulating revenue even if the CV cycle softens.
5. Preferential allotment and balance-sheet repair - A preferential issue of \~2 crore equity shares at ₹17.25 and 1 crore warrants at ₹20 was approved in February 2025, with 50 lakh shares already allotted upon warrant exercise. Fresh equity infusion alongside a stated focus on debt reduction can lower interest cost and improve coverage from the current 1.13x, directly lifting net profit.