Harsha Engineers International Ltd has accepted the resignation of Lokesh Miglani from his role as Senior General Manager and Head of the Brass Strategic Business Unit (SBU). The company confirmed that Miglani’s last working day would be August 21, 2026, marking the end of a three-year tenure with the organization.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In a letter to the stock exchanges, the company stated that Miglani submitted his resignation on account of new opportunities. The resignation was accepted with immediate effect from the close of business hours on August 21, 2026.

Key Details of Resignation

In his resignation letter addressed to Pilak Shah, COO and Executive Director, Miglani expressed appreciation for the trust extended to him during his time at Harsha Engineers. He highlighted key milestones achieved during his tenure, including a sustained increase in brass output and the accelerated ramp-up of Generation 1 facilities, alongside the ongoing ramp-up of Generation 2.

Miglani noted that his responsibilities provided invaluable exposure and professional experience. He thanked the leadership for their guidance during critical phases and acknowledged the company’s culture of openness and ownership.

Kiran Kumar Mohanty, Company Secretary and Chief Compliance Officer of Harsha Engineers, signed the disclosure filed with the Bombay Stock Exchange and the National Stock Exchange of India Limited.

Harsha Engineers International Limited reported a 25.2% year-on-year increase in consolidated revenue from operations to ₹457.43 crore for the quarter ended June 30, 2026 (Q1FY27), signaling robust demand in its core engineering business. Despite the top-line growth, consolidated net profit after tax (PAT) dipped slightly by 1.4% to ₹37.38 crore, reflecting margin pressures from rising raw material costs, forex losses, and underperformance in foreign subsidiaries.

The Board of Directors, chaired by Rajendra Shah, approved the unaudited standalone and consolidated financial results on August 11, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors Mukesh M. Shah & Co., who issued an unmodified conclusion on both sets of statements. Company Secretary Kiran Kumar Mohanty filed the presentation with BSE and NSE.

Segment Performance

The Engineering & Others segment remained the primary revenue driver, contributing ₹421.08 crore to consolidated revenues, a 20.7% increase from ₹348.83 crore in Q1FY26. This segment delivered ₹69.79 crore in EBITDA, up 7.1% year-on-year. The Solar-EPC and O&M segment saw significant volume expansion, with revenues jumping 120.8% to ₹36.35 crore from ₹16.46 crore in the prior year quarter, though its contribution to overall profitability remained modest with an EBITDA of ₹2.82 crore.

Financial Highlights

Q1FY27 EBITDA stood at ₹72.61 crore versus ₹66.16 crore in the same period last year, with EBITDA margin improving to 14.8% from 14.2% YoY. Standalone total income stood at ₹323.18 crore, against total expenses of ₹262.01 crore. Cost of materials consumed increased 13.6% to ₹159.10 crore, aligning with revenue growth. Employee benefits expenses rose 5.7% to ₹35.81 crore. On the consolidated front, finance costs nearly doubled to ₹5.83 crore from ₹2.57 crore in Q1FY26, impacting bottom-line retention despite higher operating profits. Total tax expenses for the consolidated entity were ₹15.62 crore, compared to ₹15.13 crore in the previous year.

Product Mix and Growth Drivers

Management highlighted broad-based demand recovery across key product lines. Sales of Bushings stood at around ₹34 crore, reflecting 35% YoY growth, while Stamping sales reached approximately ₹90 crore, up 31% YoY. Large-size Cages sales appeared lower at around ₹10 crore due to ramp-up challenges at the new facility, but management expects 50% growth for the full year based on strong order book visibility. Exports from India grew 22% YoY to ₹139 crore, driven by industrial demand in Europe and the US. Japanese customer sales rose 25% YoY to ₹21 crore, though full-year growth is guided at a modest 10% due to slow conversion cycles.

Subsidiary Performance and CapEx

Wholly owned subsidiary Harsha Advantek reported revenues of ₹30 crore, showing 7% QoQ growth, but posted a PAT loss of ₹4.3 crore due to lower EBITDA during its ramp-up phase. It is expected to be PAT positive by the end of FY27 with annual sales targeting over ₹140 crore. Harsha China remains stable with expected 10% full-year growth and 12-14% EBITDA margins. Harsha Romania continues to underperform with negative EBITDA and PAT, impacted by a one-time ₹2 crore forex loss and high overheads. The combined net loss from foreign subsidiaries was around ₹3.3 crore in Q1FY27, down significantly from around ₹10 crore in FY26.

CapEx for Q1FY27 stood at ₹37 crore. The company is executing brownfield expansions in China and Phase-2 expansion at its Bhayla plant. The China project is on track for commissioning in Q3FY28, with full impact expected from FY29. Total CapEx for FY27 and FY28 is guided at ₹180-200 crore over the two-year period.

What the Numbers Show

A key divergence exists between standalone and consolidated profitability trends. While the parent company improved its net margin slightly, the group's net margin contracted to 8.2% from 10.4%, suggesting that subsidiaries or joint ventures incurred disproportionate costs relative to their revenue contribution in this quarter. Management attributed the compression in India Engineering Business margins to a 6-8% increase in raw material costs, a forex loss of around ₹4 crore on cash flow hedge settlements, and higher indirect material costs of around ₹3 crore. These cost increases are expected to be passed through in subsequent quarters.

Foreign subsidiaries presented mixed results. Harsha Advantek reported revenues of ₹30 crore, showing 7% QoQ growth, but posted a PAT loss of ₹4.3 crore due to lower EBITDA; it is expected to be PAT positive on a full-year basis. Harsha Romania continued to underperform with negative EBITDA and PAT, while Harsha China remained positive. The combined net loss from foreign subsidiaries was around ₹3.3 crore in Q1FY27, down from a combined net loss of around ₹10 crore in FY26. The China Brownfield expansion project is on track for commissioning in Q3FY28.