Harsha Engineers International Limited has announced that its wholly owned subsidiary, Harsha Engineers Advantek Limited, will undertake a Phase 2 strategic capital investment of approximately Rs 110 crores. The investment is targeted at expanding manufacturing capabilities for bushing and stamping products at the subsidiary’s plant located in Bavla, Ahmedabad. This expansion is intended to drive revenue growth and capitalize on market opportunities through capital investment.

The project involves setting up new buildings and manufacturing lines to increase production capacity. The existing capacity stands at approximately 38 Mio pieces for bushings, cages, and stamping products, with a capacity utilization of approximately 54% on an annualized basis. The proposed expansion will add approximately 12 Mio pieces to this capacity.

The new capacity is scheduled to be added within a period of 18 months. The investment of approximately Rs 110 crores will be financed through a combination of capital contribution and term loan financing. The rationale behind this strategic expansion includes strengthening the company's position in stamping components and bushing products.

Investment and Capacity Details

The disclosure was made to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligation and Disclosures Requirements) Regulations, 2015.

Harsha Engineers International Limited held its Q4 FY26 post-result earnings conference call on May 7, 2026, following the Board of Directors' approval of audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The call was attended by CEO Vishal Rangwala, CFO Maulik Jasani, and Strategic Advisor Sanjay Majmudar. In compliance with Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company also published its results in Business Standard (English) and Jai Hind (Gujarati) on May 8, 2026. The earnings call transcript was subsequently filed with stock exchanges on May 12, 2026, under Regulation 30 of SEBI (LODR) Regulations, 2015.

Engineering Segment Financial Performance

The Engineering segment delivered strong results for both the quarter and the full year. The following table summarises the key financial metrics at the consolidated level:

Management noted that margin improvement during the quarter and year was driven by higher export sales, strong domestic demand, a better product mix, and cost control measures. The adjusted EBITDA for FY26 reflects the impact of the new Labour Code.

Business Segment Highlights

Across key verticals, the company reported broad-based growth in FY26. The Bushing business posted revenue of ₹127 crore, reflecting approximately 25% growth over the previous year, while the Stamping business recorded revenue of approximately ₹60 crore. Large-size cage sales grew by approximately 14% to around ₹49 crore, and sales to Japan-based customers grew by approximately 12% to around ₹73 crore. India Cage business (pure India-to-India) grew by more than 10%. Overall India Engineering business, including subsidiary Harsha Advantek, posted approximately 14% growth in FY26. Exports from India grew by approximately 17% compared to FY25.

Solar Business Performance

The Solar business achieved revenue of ₹183 crore for FY26, with a PAT of ₹10.20 crore, compared to an adjusted PAT of ₹5 crore in the previous year. Management attributed this performance to continued tailwinds from increasing awareness and supportive government policies, particularly in Gujarat. EBITDA margin for the Solar segment improved from approximately 4.50% to approximately 8.50% in FY26.

Subsidiary Performance: Advantek, China, and Romania

Harsha Advantek, the newly commissioned facility in Bhayla, posted a positive EBITDA of ₹4 crore in FY26 but reported a combined loss of ₹11.40 crore due to higher depreciation and interest costs in its first year of operations. Harsha China recorded a turnover of approximately ₹120 crore with a PAT of approximately ₹5 crore, reflecting a top-line growth of approximately 9.26% in FY26 over FY25 and a positive EBITDA of around 11%. Harsha Romania reported a turnover of approximately ₹247 crore with a loss after tax of approximately ₹14 crore. The combined loss of China and Romania subsidiaries stood at ₹9 crore in FY26, compared to ₹14 crore in the previous year.

Management indicated that capacity utilization at Advantek is improving and that sales from this unit are expected to grow at least 3x in FY27. A China brownfield expansion project for steel cages has been commenced, with an expected capex of approximately ₹70 crore in the current financial year and ₹20 crore in the following year. This project is expected to be operational in H2 FY28.

Capex Plans and Revenue Potential

For the current financial year, management outlined maintenance capex of approximately ₹30–₹40 crore in India, in addition to the China expansion capex. Planning for the second phase of Harsha Advantek is underway, with details expected to be finalised in the coming weeks. Based on current installed capacities and planned maintenance capex, management indicated that India-level revenues could reach approximately ₹2,400–₹2,500 crore, while consolidated revenues could reach approximately ₹2,700–₹3,000 crore. Advantek, at peak utilization of its current installed capacity, is expected to contribute approximately ₹250–₹300 crore in turnover.

Geographic Revenue Mix and Growth Outlook

At the consolidated level, approximately 58% of FY26 revenues were generated outside India. Among international geographies, Europe contributed approximately 30% of total sales, China slightly above 10%, the US approximately 6–7%, and Japan approximately 2%. Management expressed confidence in achieving overall double-digit top-line growth in FY27, with India Engineering expected to grow in the mid-teens. The Bushing segment is targeted to grow at 25–30%, and the Stamping and Bushing segments are each expected to deliver 15–20% growth over the medium term. The Solar business is expected to grow more than 25%. Management also indicated an expectation of a 100–200 basis points improvement in consolidated EBITDA margins over a 2–3 year period.

Regulatory Filing Details

The earnings call transcript was filed by Kiran Mohanty, Company Secretary and Chief Compliance Officer (Membership No.: F9907), under reference number HEIL/SE-10/2026-27, addressed to both BSE Limited and National Stock Exchange of India Limited. Harsha Engineers International Limited is headquartered at Sarkhej - Bavla Road, Changodar, Ahmedabad, Sanand - 382213, Gujarat, India, and holds CIN: L29307GJ2010PLC063233. The financial results and related disclosures are available on the company's website at www.harshaengineers.com , as well as on the BSE and NSE websites.