Investors tracking turnaround stories may want to keep a close eye on this small-cap counter after its latest annual results revealed a dramatic mix of booming revenue and a surprise loss.

The company reported a sharp rise in topline numbers for FY26, but profitability took a hit due to a major accounting adjustment.

MIC Electronics Limited posted consolidated revenue from operations of ₹190.52 crore for the year ended March 31, 2026, more than double the ₹94.76 crore reported in FY25. Profit before tax also improved to ₹16.68 crore from ₹13.06 crore in the previous year, reflecting stronger business momentum.

However, the headline shock came at the net profit level. The company reported a consolidated net loss of ₹12.63 crore for FY26 versus a profit of ₹9.83 crore last year. Management said this was mainly due to reversal of deferred tax assets worth ₹29.31 crore linked to older carried-forward business losses, a non-cash adjustment that impacted earnings.

Despite the loss, operating performance appeared resilient. The March quarter alone delivered ₹51.14 crore in total income and ₹10.97 crore profit before tax. With revenue surging and core operations improving, market participants may now watch whether the stock focuses on the accounting loss-or the strong growth story underneath.