Elecon Engineering Company , a leading player in the engineering sector, has announced ambitious capital expenditure plans and revenue projections for the fiscal year 2026 (FY26), signaling a strong focus on growth and expansion.

Substantial Capital Expenditure Plans

The company has outlined a significant capital expenditure (capex) strategy, allocating funds across its two primary divisions:

• Gear Division: A substantial investment of Rs 400.00 crore is planned for this segment.
• Material Handling Equipment (MHE) Division: An additional Rs 35.00 crore is earmarked for this division.

This total capex of Rs 435.00 crore underscores Elecon Engineering Company's commitment to enhancing its operational capabilities and market position.

Revenue Projections for FY26

Elecon Engineering Company has set forth ambitious revenue targets for FY26:

• Consolidated Revenue: The company expects to achieve a consolidated revenue of Rs 2,650.00 crore.
• MHE Division: Projected revenue of Rs 650.00 crore with an impressive 23% sustainable profit margin.

It's worth noting that the consolidated revenue projection excludes an additional Rs 25.00 crore expected from an arbitration settlement.

Division-wise Performance Expectations

The company's projections highlight the significant role of the MHE Division in its overall growth strategy:

The projected 23% sustainable profit margin for the MHE Division indicates the company's confidence in this segment's profitability and operational efficiency.

Implications for Growth

These announcements reflect Elecon Engineering Company's strategic vision for sustained growth and profitability. The substantial capex investments, particularly in the Gear Division, suggest the company's intent to expand its capabilities, potentially to meet growing market demand or to introduce new product lines.

The projected revenue figures and profit margins, especially for the MHE Division, indicate the company's optimistic outlook on market conditions and its competitive position in the engineering sector.

As Elecon Engineering Company moves forward with these plans, stakeholders will likely be keen to monitor the company's progress in implementing its capex strategy and achieving its ambitious revenue targets for FY26.

Elecon Engineering Company has responded to a notice from the National Stock Exchange (NSE) regarding non-compliance in Related Party Transaction (RPT) disclosure. The company has requested a waiver from the NSE for this non-compliance.

Board's Response to NSE Notice

In a filing to the stock exchanges, Elecon Engineering stated that the matter was placed before its Board of Directors at a meeting held on 11th July, 2025. After discussions and due consideration of the facts and circumstances, the Board noted several key points:

1. The company had submitted the Integrated Financial Results (IFS), including the Related Party Transactions (RPT) disclosures, on 24th April, 2025 on the BSE Listing Portal in XBRL format, within the prescribed timeline.

2. Based on past experience and understanding, the company filed the Integrated Financial Results including RPT disclosure (in XBRL format) only on the BSE Listing Portal, expecting it to automatically reflect on the NSE website without requiring separate action on the NSE portal (NEAPS).

3. This expectation was based on the company's recent experience with submitting the Integrated Corporate Governance Report on 21st April, 2025, which was reflected automatically on the NSE website after submission to BSE.

4. The company was surprised to receive communication from NSE on 5th May, 2025 regarding non-compliance.

Immediate Corrective Action

Upon receiving the NSE communication, Elecon Engineering took immediate corrective action:

• The required disclosure was uploaded on the NEAPS portal on 6th May, 2025.
• A formal waiver application was submitted to NSE on 10th July, 2025, along with supporting documents and payment of applicable processing fees.

Company's Stance

Elecon Engineering emphasized its commitment to full compliance and transparency. The Board acknowledged that the omission of submission on the NSE portal was due to a lack of clarity and the simultaneous introduction of two distinct but similarly framed systems—the Integrated Filing System and the Single Filing System.

The company maintained that it acted in good faith, believing that the BSE filing fulfilled the compliance requirement across both exchanges.

Waiver Request

Given these circumstances, Elecon Engineering has requested a waiver from NSE for the non-compliance. The company's management expressed its commitment to maintaining high standards of regulatory compliance and has taken steps to prevent such occurrences in the future.

As the matter is currently under consideration by NSE, stakeholders and investors will be keenly watching for the exchange's decision on the waiver request.