Elecon Engineering Q4 FY26 Results: Revenue INR746 Cr, Margins Stable at 21.2%
Elecon Engineering reported Q4 FY26 consolidated revenue of INR746 crores with EBITDA margin at 21.2% and net profit of INR108 crores. For the full year FY26, adjusted revenue stood at INR2,341 crores with EBITDA margin of 21.3% and reported PAT of INR341 crores. The Gear Division revenue declined 21% YoY to INR472 crores, while the MHE Division grew 36.8% to INR274 crores. The company maintains a net cash balance of INR700 crores and has recommended a final dividend of INR1.50 per share.
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Elecon Engineering Company reported its Q4 FY26 financial results, with consolidated revenue from operations standing at INR746 crores compared to INR798 crores in the corresponding quarter of the previous year. The company delivered EBITDA of INR158 crores, maintaining a margin of 21.2%, while net profit for the quarter came in at INR108 crores, translating to a PAT margin of 14.5%. The quarter's performance was primarily impacted by slower conversion of the order pipeline into revenue, with customers recalibrating their capex schedules amid broader industry trends.
For the full year FY26, adjusted consolidated revenue stood at INR2,341 crores compared to INR2,227 crores in FY25. Adjusted EBITDA for the year reached INR498 crores with margins of 21.3%, remaining broadly stable despite near-term execution volatility. The company recognized an exceptional item including impairment of goodwill of INR102 crores. Including all exceptional and one-time items, reported PAT for FY26 stood at INR341 crores.
Segment Performance
The Gear Division, which contributed approximately 63% of consolidated revenue in Q4, reported revenue of INR472 crores, reflecting a decline of 21% year-on-year. This was primarily due to delayed order inflows, extended dispatch timelines, and customer-led deferment of delivery amid ongoing macroeconomic and geopolitical uncertainties. The division's EBIT stood at INR91 crores with margins at 19.3%. Order intake remained strong at INR550 crores during the quarter, with an open order book of INR894 crores as of March 31, 2026.
The Material Handling Equipment (MHE) Division continued its strong growth trajectory, posting a 36.8% year-on-year increase in revenue to INR274 crores from INR200 crores in Q4 FY25. This performance was driven by sustained demand across core sectors such as power, cement, mining, and ports. EBIT for the division stood at INR62 crores compared to INR59 crores in the corresponding quarter of the previous year. The division's order book closed at INR398 crores as of March 31, 2026.
| Parameter | Q4 FY26 | Q4 FY25 | FY26 |
|---|---|---|---|
| Consolidated Revenue | INR746 crores | INR798 crores | INR2,341 crores |
| EBITDA | INR158 crores | - | INR498 crores |
| EBITDA Margin | 21.2% | - | 21.3% |
| Net Profit | INR108 crores | - | INR341 crores |
| Gear Division Revenue | INR472 crores | INR597 crores | - |
| MHE Division Revenue | INR274 crores | INR200 crores | - |
Strategic Outlook and Balance Sheet
The company maintains a strong financial position with a net cash balance of approximately INR700 crores. The Board has recommended a final dividend of INR1.50 per equity share having a face value of INR1 each, subject to shareholders' approval. Regarding future guidance, the company expects growth in FY27 compared to FY26 while maintaining stable margins. However, management acknowledged that the specific amount of growth remains uncertain given the continued macroeconomic uncertainty and limited near-term visibility.
The company has established a step-down subsidiary in Mexico to strengthen its presence in the Latin American region. Capacity utilization currently stands at 56% to 60%. The company continues to focus on portfolio diversification, expansion into new sectors and geographies, and continuous strengthening of engineering and execution capabilities.
Historical Stock Returns for Elecon Engineering Company
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.96% | +23.28% | +30.55% | -8.08% | -0.66% | +1,148.96% |
How will Elecon's new Mexico subsidiary impact its competitive positioning against local manufacturers in the Latin American market?
What specific measures is Elecon implementing to accelerate order conversion and reduce customer delivery deferrals in FY27?
Will the ongoing geopolitical uncertainties lead Elecon to diversify its customer base away from steel sector dependency?
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