Rectitude Holdings Ltd Announces Full-Year Financial Results for the Fiscal Year Ended March 31, 2026
SINGAPORE, July 30, 2026 (GLOBE NEWSWIRE) -- Rectitude Holdings Ltd (the “Company” or “Rectitude”), a Singapore-based provider of safety equipment and related industrial-grade hardware products, today announced its financial results for the fiscal year ended March 31, 2026.
Fiscal Year ended March 31, 2026, Full Year Highlights (amounts in US$):
- Revenues for the fiscal year ended March 31, 2026, increased 21.99%.
- Gross profit margin decreased to 32.17% of revenue, down 148 basis points.
- Selling and marketing expenses increased $560,001.
- Research and development expenses decreased to nil.
- General and administrative expenses decreased $265,065.
- Net income was $2.78 million, or $0.19 per diluted share, for the fiscal ended March 31, 2026, compared to net income of $1.66 million, or $0.12 per diluted share, for the fiscal year ended March 31, 2025.
- EBITDA for the fiscal year ended March 31, 2026, was $5.47 million, an increase of $2.08 million from $3.39 million in the prior year period.
* Note on Convenience Translations and Foreign Currency Movements: Financial metrics for the fiscal years ended March 31, 2025 and 2026, were translated from Singapore Dollars (S$) into U.S. Dollars ($) solely for the reader's convenience. Income statement items were translated at the average exchange rates of US$1.00 = S$1.3381 and US$1.00 = S$1.2871 for FY 2025 and FY 2026, respectively. Balance sheet items were translated at the period-end spot rates of US$1.00 = S$1.3445 (as of March 31, 2025) and US$1.00 = S$1.2901 (as of March 31, 2026). Due to exchange rate fluctuations between reporting periods, year-over-year percentage changes calculated using U.S. Dollar amounts will differ from year-over-year percentage changes calculated in Singapore Dollars, the Company's functional currency.
“Fiscal 2026 was a historic year of growth and operational execution for Rectitude, marked by record performance across revenue, net income, and EBITDA. They were our strongest financial metrics since becoming a publicly traded company in 2024. Our results were further propelled by highly active local market conditions, as surging public infrastructure and residential project pipelines across Singapore drove strong demand for both our safety solutions and flagship products like our All-in-one Intelligent Micro-grid System (AIMS),” said Mr. Jian Zhang, Chairman, Chief Executive Officer, and Executive Director at Rectitude. “The strategic investments we made in expanding our branch network, expanding logistics, and scaling clean energy innovations are yielding substantial returns. As we carry this momentum forward, we remain dedicated to capitalizing on robust construction tailwinds, providing reliable equipment to our job site partners, and driving maximum value for our shareholders.”
Revenues
For the fiscal year ended March 31, 2026, total revenues were $39.74 million, representing an increase of approximately $7.16 million, or 21.99%, from $32.57 million for the fiscal year ended March 31, 2025. The increase was primarily driven by key supply agreements for AIMS equipment, expanded market demand for existing and newly launched product lines, and strategic growth initiatives, including a new branch opening and collaborative partnerships.
Cost of Revenues
For the fiscal year ended March 31, 2026, cost of revenues was $26.96 million, representing an increase of approximately $5.34 million, or 24.72%, from $21.61 million for the fiscal year ended March 31, 2025. The increase in cost of revenue was driven by higher sales volumes associated with overall business growth, partially offset by ongoing product sourcing and cost-optimization efforts.
Gross profit
Gross profit for the fiscal year ended March 31, 2026, was $12.78 million, representing 32.17% of operating revenues, compared to gross profit of $10.96 million, representing 33.65% of operating revenues, for the fiscal year ended March 31, 2025. The increase in gross profit was mainly driven by overall top-line revenue growth, while the decrease in gross profit margin was due to competitive pricing pressures, partially offset by cost-optimization initiatives.
Selling and marketing expenses
Selling and marketing expenses primarily included expenses related to advertising and marketing activities and costs associated with our retail branches, which included labor costs, sales commissions and operating lease expenses. For the fiscal year ended March 31, 2026, selling and marketing expenses were $4.13 million, representing an increase of $560,001, or 15.69%, from $3.57 million in the prior year period. This increase was primarily driven by higher sales volume in line with revenue growth, which resulted in increased sales commissions, marketing support, transportation, packaging, and other distribution costs necessary to support the higher level of business.
Research and development expenses
Research and development expenses primarily consisted of compensation cost to engineering, design and product development employees and software expenses. For the fiscal year ended March 31, 2026, research and development expenses were nil, compared to $116,733 for the fiscal year ended March 31, 2025. The decrease to nil was primarily due to ongoing R&D projects that incurred no additional cost during the quarter.
General and administrative expenses
General and administrative expenses consisted primarily of motor vehicle running expenses, transportation, property maintenance and property tax, allowance for expected credit losses and general administrative expenses such as staff costs, depreciation, legal and professional fees and other miscellaneous administrative expenses. For the fiscal year ended March 31, 2026, general and administrative expenses were $5.35 million, representing a decrease of $265,065, or 4.72%, from $5.61 million in the prior year period. The decrease was driven by cost control initiatives and improved operational efficiencies, including lower professional fees, reduced office expenses, and streamlined administrative processes.
Net Income
As a result of the factors described above, net income for the fiscal year ended March 31, 2026, was approximately $2.78 million, representing an increase of $1.12 million, or 67.25%, from $1.66 million for the fiscal year ended March 31, 2025.
Earnings per Share - Basic and Diluted
Earnings per basic and diluted share for the fiscal year ended March 31, 2026, was $0.19, representing an increase of $0.07 from $0.12 for the fiscal year ended March 31, 2025.
EBITDA
The Company also views earnings before interest, taxes, depreciation and amortization, (EBITDA) as an important measure of the results of operations. For the fiscal year ended March 31, 2026, EBITDA was $5.47 million, representing an increase of approximately $2.08 million from $3.39 million in the prior year period. The increase in EBITDA was primarily driven by an increase in profitability, partially offset by increases in interest, depreciation and amortization expenses.
Outlook
Looking ahead to Fiscal Year 2027, Mr. Zhang commented, “Building on our historic performance in Fiscal 2026, we enter the new fiscal year with strong operational momentum, supported by a vibrant construction market in Singapore and robust demand across our product lines.”
“Over the past year, we delivered directly on the strategic promises we made to our shareholders, scaling our All-in-one Intelligent Micro-grid System (AIMS) to power low-carbon construction sites, while formally establishing the Rectitude Succession Bridge (RSB) which provides a structured, risk-mitigated 'incubate-to-acquire' path for retiring first-generation SME owners. As we move into Fiscal 2027, we expect continued double-digit growth momentum for AIMS and further expansion of our RSB ecosystem across Southeast Asia.”
“Grounded in the core operational principles that have guided Rectitude for over 26 years, we remain focused on disciplined execution to drive sustainable growth and maximize long-term value for our shareholders,” Mr. Zhang concluded.
About Rectitude Holdings Ltd
Founded in 1997 in Singapore, Rectitude is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude’s products and solutions are marketed to a wide array of distributor networks and end markets, both in Singapore and increasingly throughout the Southeast Asian region, including Brunei, Cambodia, Malaysia, Indonesia, and Vietnam.
For more information, please visit the Company’s website: https://ir.rectitude.com.sg
Forward-Looking Statements
Certain statements in this press release are forward-looking statements, including, but not limited to, statements regarding the Company's future financial performance, outlook, business strategy, plans, and market opportunities. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may,” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's Annual Report on Form 20-F for the fiscal year ended March 31, 2026, and its other filings with the U.S. Securities and Exchange Commission.
For investor and media inquiries, please contact:
Rectitude
Investor Relations
Email: ir@rectitude.com.sg
Jackson Lin
LLYC
Phone: +1 (646) 717-4593
Email: jian.lin@llyc.global
| RECTITUDE HOLDINGS LTD CONSOLIDATED BALANCE SHEETS | ||||||||||||
| As of March 31, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| S$ | S$ | US$ | ||||||||||
| Assets | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | 6,646,788 | 6,054,617 | 4,693,236 | |||||||||
| Accounts receivable, net | 11,547,018 | 15,505,209 | 12,018,863 | |||||||||
| Inventories, net | 7,578,048 | 8,113,271 | 6,289,002 | |||||||||
| Other receivables | 645,462 | 984,591 | 763,206 | |||||||||
| Advance to supplier | 800,000 | 3,043,674 | 2,359,304 | |||||||||
| Advances to related parties | 236,811 | 706,647 | 547,758 | |||||||||
| Total current assets | 27,454,127 | 34,408,009 | 26,671,369 | |||||||||
| Non-current assets | ||||||||||||
| Financial instrument | 236,771 | 233,715 | 181,164 | |||||||||
| Loan receivables | 5,180,380 | 2,410,860 | 1,868,778 | |||||||||
| Property, plant and equipment, net | 6,399,557 | 7,505,578 | 5,817,949 | |||||||||
| Right-of-use assets – operating leases | 4,420,627 | 4,065,355 | 3,151,260 | |||||||||
| Total non-current assets | 16,237,335 | 14,215,508 | 11,019,151 | |||||||||
| Total assets | 43,691,462 | 48,623,517 | 37,690,520 | |||||||||
| Liabilities and shareholders’ equity | ||||||||||||
| Current liabilities | ||||||||||||
| Bank loans, current portion | 400,016 | 487,266 | 377,704 | |||||||||
| Finance lease liabilities, current portion | 199,320 | 206,352 | 159,954 | |||||||||
| Accounts payable | 7,571,503 | 8,861,968 | 6,869,355 | |||||||||
| Operating lease liabilities, current portion | 1,298,058 | 1,513,298 | 1,173,033 | |||||||||
| Other payables | 2,208,350 | 1,688,558 | 1,308,885 | |||||||||
| Provision for income taxes | 454,005 | 856,433 | 663,864 | |||||||||
| Total current liabilities | 12,131,252 | 13,613,875 | 10,552,795 | |||||||||
| Non-current liabilities: | ||||||||||||
| Bank loans, non-current portion | 2,834,183 | 3,518,428 | 2,727,309 | |||||||||
| Finance lease liabilities, non-current portion | 593,510 | 627,176 | 486,155 | |||||||||
| Operating lease liabilities, non-current portion | 3,363,357 | 2,814,797 | 2,181,890 | |||||||||
| Deferred tax liabilities | 1,446 | 1,446 | 1,121 | |||||||||
| Total non-current liabilities | 6,792,496 | 6,961,847 | 5,396,475 | |||||||||
| Total liabilities | 18,923,748 | 20,575,722 | 15,949,270 | |||||||||
| Commitments and contingencies (Note 20) | — | — | — | |||||||||
| Shareholders’ equity | ||||||||||||
| Ordinary shares, US$0.0001 par value, authorized 500,000,000 shares, issued 14,500,000 and 14,500,000 shares outstanding as of March 31, 2025 and March 31, 2026, respectively* | 1,978 | 1,978 | 1,533 | |||||||||
| Additional paid-in capital | 11,382,600 | 11,382,600 | 8,823,222 | |||||||||
| Retained earnings | 13,444,178 | 17,035,463 | 13,205,041 | |||||||||
| Accumulated other comprehensive losses | (61,042 | ) | (372,246 | ) | (288,546 | ) | ||||||
| Total shareholders’ equity | 24,767,714 | 28,047,795 | 21,741,250 | |||||||||
| Total liabilities and shareholders’ equity | 43,691,462 | 48,623,517 | 37,690,520 | |||||||||
|
RECTITUDE HOLDINGS LTD CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||
| For the Years ended March 31, | ||||||||||||||||
| 2024 | 2025 | 2026 | 2026 | |||||||||||||
| S$ | S$ | S$ | US$ | |||||||||||||
| Revenue | 41,353,555 | 43,796,144 | 51,263,918 | 39,737,227 | ||||||||||||
| Cost of revenue | (26,645,034 | ) | (29,057,985 | ) | (34,774,738 | ) | (26,955,638 | ) | ||||||||
| Gross profit | 14,708,521 | 14,738,159 | 16,489,180 | 12,781,589 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling and marketing expenses | (3,423,531 | ) | (4,798,465 | ) | (5,326,659 | ) | (4,128,960 | ) | ||||||||
| Research and development expenses | (76,386 | ) | (156,947 | ) | — | — | ||||||||||
| General and administrative expenses | (7,044,966 | ) | (7,545,515 | ) | (6,898,110 | ) | (5,347,070 | ) | ||||||||
| Total operating expenses | (10,544,883 | ) | (12,500,927 | ) | (12,224,769 | ) | (9,476,030 | ) | ||||||||
| Income from operations | 4,163,638 | 2,237,232 | 4,264,411 | 3,305,559 | ||||||||||||
| Other income/(expense) | ||||||||||||||||
| Other income, net | 198,440 | 421,223 | 662,458 | 513,504 | ||||||||||||
| Interest expense | (214,462 | ) | (200,638 | ) | (175,245 | ) | (135,841 | ) | ||||||||
| Total other income/(expense), net | (16,022 | ) | 220,585 | 487,213 | 377,663 | |||||||||||
| Income before income tax | 4,147,616 | 2,457,817 | 4,751,624 | 3,683,222 | ||||||||||||
| Income tax expense | (792,207 | ) | (219,952 | ) | (1,160,339 | ) | (899,436 | ) | ||||||||
| Net income | 3,355,409 | 2,237,865 | 3,591,285 | 2,783,786 | ||||||||||||
| Other comprehensive loss | ||||||||||||||||
| Foreign currency translation adjustments | — | (61,042 | ) | (311,204 | ) | (241,230 | ) | |||||||||
| Comprehensive income | 3,355,409 | 2,176,823 | 3,280,081 | 2,542,556 | ||||||||||||
| Weighted average number of ordinary shares | ||||||||||||||||
| Basic and diluted* | 12,500,000 | 14,056,164 | 14,500,000 | 14,500,000 | ||||||||||||
| Earnings per share | ||||||||||||||||
| Basic and diluted | 0.27 | 0.16 | 0.25 | 0.19 | ||||||||||||
|
RECTITUDE HOLDINGS LTD CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
| Ordinary shares | Additional |
Accumulated other |
Total | |||||||||||||||||||||
| Number of | paid-in | Retained | comprehensive | shareholders’ | ||||||||||||||||||||
| shares | Amount | capital | earnings | income | equity | |||||||||||||||||||
| S$ | S$ | S$ | S$ | S$ | ||||||||||||||||||||
| Balance as at April 1, 2023* | 12,500,000 | 1,707 | 3,377,293 | 7,850,904 | — | 11,229,904 | ||||||||||||||||||
| Net income | — | — | — | 3,355,409 | — | 3,355,409 | ||||||||||||||||||
| Balance as at March 31, 2024 | 12,500,000 | 1,707 | 3,377,293 | 11,206,313 | — | 14,585,313 | ||||||||||||||||||
| Issuance of ordinary shares | 2,000,000 | 271 | 8,005,307 | — | — | 8,005,578 | ||||||||||||||||||
| Net income | — | — | — | 2,237,865 | — | 2,237,865 | ||||||||||||||||||
| Foreign currency translation adjustments | — | — | — | — | (61,042 | ) | (61,042 | ) | ||||||||||||||||
| Balance as at March 31, 2025 | 14,500,000 | 1,978 | 11,382,600 | 13,444,178 | (61,042 | ) | 24,767,714 | |||||||||||||||||
| Net income | — | — | — | 3,591,285 | — | 3,591,285 | ||||||||||||||||||
| Foreign currency translation adjustments | — | — | — | — | (311,204 | ) | (311,204 | ) | ||||||||||||||||
| Balance as at March 31, 2026 | 14,500,000 | 1,978 | 11,382,600 | 17,035,463 | (372,246 | ) | 28,047,795 | |||||||||||||||||
| Balance as at March 31, 2026 (US$) | 1,533 | 8,823,222 | 13,205,041 | (288,546 | ) | 21,741,250 | ||||||||||||||||||
| RECTITUDE HOLDINGS LTD CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| Years ended March 31, | ||||||||||||||||
| 2024 | 2025 | 2026 | 2026 | |||||||||||||
| S$ | S$ | S$ | US$ | |||||||||||||
| Cash flows from operating activities | ||||||||||||||||
| Net income | 3,355,409 | 2,237,865 | 3,591,285 | 2,783,786 | ||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||
| Depreciation of property, plant and equipment | 536,013 | 609,711 | 682,365 | 528,935 | ||||||||||||
| Amortization of right-of-use assets | 986,420 | 1,291,797 | 1,442,271 | 1,117,976 | ||||||||||||
| Operating lease modifications | (7,025 | ) | (30,798 | ) | — | — | ||||||||||
| Gain on disposal of property, plant and equipment | (5,000 | ) | (957 | ) | (34,530 | ) | (26,766 | ) | ||||||||
| Allowance for inventories write-down | 56,415 | — | 89,298 | 69,219 | ||||||||||||
| Provision for allowance for expected credit losses – third parties | 68,436 | 358,426 | 33,074 | 25,637 | ||||||||||||
| Fair value change in financial instrument | (9,502 | ) | (5,478 | ) | 3,056 | 2,369 | ||||||||||
| Changes in operating assets and liabilities | ||||||||||||||||
| Accounts receivable, net | (899,646 | ) | (397,380 | ) | (3,991,265 | ) | (3,093,829 | ) | ||||||||
| Other receivables | 35,705 | (148,153 | ) | (339,129 | ) | (262,878 | ) | |||||||||
| Advance to supplier | — | (800,000 | ) | (2,243,674 | ) | (1,739,184 | ) | |||||||||
| Advances to related parties | — | 121,208 | (469,836 | ) | (364,193 | ) | ||||||||||
| Inventories | (524,506 | ) | (1,328,153 | ) | (624,521 | ) | (484,097 | ) | ||||||||
| Accounts payable | (229,789 | ) | 1,130,409 | 1,290,465 | 1,000,304 | |||||||||||
| Other payables | 1,602,687 | (850,431 | ) | (519,792 | ) | (402,917 | ) | |||||||||
| Finance lease liabilities – interest portion of lease payment | (80,461 | ) | (39,858 | ) | (44,666 | ) | (34,623 | ) | ||||||||
| Operating lease liabilities | (816,855 | ) | (1,224,960 | ) | (1,420,319 | ) | (1,100,960 | ) | ||||||||
| Income tax payable | 131,736 | (723,114 | ) | 402,428 | 311,942 | |||||||||||
| Net cash provided by/(used in) operating activities | 4,200,037 | 200,134 | (2,153,490 | ) | (1,669,279 | ) | ||||||||||
| Cash flows from investing activities: | ||||||||||||||||
| Purchases of property, plant and equipment | (235,355 | ) | (615,809 | ) | (197,410 | ) | (153,022 | ) | ||||||||
| Proceeds from disposal of property, plant and equipment | 5,000 | 1,000 | 34,450 | 26,704 | ||||||||||||
| Disbursement of loan to third parties | — | (7,680,380 | ) | — | — | |||||||||||
| Repayment of loan from third parties | — | 2,500,000 | 2,458,316 | 1,905,564 | ||||||||||||
| Net cash (used in)/provided by investing activities | (230,355 | ) | (5,795,189 | ) | 2,295,356 | 1,779,246 | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||
| Proceeds from common shares issued for cash | — | 9,505,469 | — | — | ||||||||||||
| Repayment to shareholders, net | (186,950 | ) | — | — | — | |||||||||||
| Dividends paid | (2,000,000 | ) | — | — | — | |||||||||||
| Deferred IPO expenses | (543,076 | ) | — | — | — | |||||||||||
| Repayments of bank loans | (126,628 | ) | (566,835 | ) | (524,875 | ) | (406,857 | ) | ||||||||
| Payments for finance lease liabilities – principal portion | (76,991 | ) | (165,385 | ) | (209,162 | ) | (162,132 | ) | ||||||||
| Net cash (used in)/ provided by financing activities | (2,933,645 | ) | 8,773,249 | (734,037 | ) | (568,989 | ) | |||||||||
| Net changes in cash and cash equivalents | 1,036,037 | 3,178,194 | (592,171 | ) | (459,022 | ) | ||||||||||
| Cash and cash equivalents at beginning of the year | 2,432,557 | 3,468,594 | 6,646,788 | 5,152,258 | ||||||||||||
| Cash and cash equivalents at end of the year | 3,468,594 | 6,646,788 | 6,054,617 | 4,693,236 | ||||||||||||
| Supplement disclosures of cash flow information | ||||||||||||||||
| Income taxes paid | (660,471 | ) | (943,066 | ) | (757,911 | ) | (587,482 | ) | ||||||||
| Interest paid | (214,462 | ) | (200,638 | ) | (175,245 | ) | (135,838 | ) | ||||||||
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