Harsha Engineers International Limited (HEIL) has announced a significant operational move for its wholly-owned subsidiary, Harsha Engineers Advantek Limited. The company has successfully completed the relocation of its entire plant machinery and operations from a leased facility to a new plant location in Ahmedabad, Gujarat.

Relocation Details

The shift, which was completed on October 31, 2025, involved moving from a leased premises to a newly established plant. Here are the key details of the relocation:

Financial Impact

HEIL has provided insights into the financial contribution of the relocated entity:

The company has stated that no material impact on its financial performance is anticipated as a result of this operational shift.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, HEIL has duly informed the stock exchanges about this development.

This strategic move by Harsha Engineers International Limited underscores the company's commitment to optimizing its operational footprint. While the immediate financial impact is expected to be minimal, the long-term implications of this relocation on the company's efficiency and productivity remain to be seen.

Harsha Engineers International Limited , a leading manufacturer of bearing cages and stamped components, has reported a consolidated revenue of INR 349.00 crores for Q1 FY2026, marking an increase from INR 330.00 crores in Q4 FY2025 and INR 327.00 crores in Q1 FY2025.

Financial Performance

The company's engineering business generated an EBITDA of INR 65.20 crores in Q1 FY2026. The solar division contributed INR 16.40 crores in revenue with an EBITDA of INR 0.90 crores.

New Facility and Expansion

A significant development for Harsha Engineers was the commissioning of Phase 1 of its greenfield facility, Harsha Advantek, in May 2025. This new facility is expected to enhance the company's production capabilities, particularly in the areas of bushings, large-sized bearing cages, and stamping.

Strategic Contract

The company has secured a long-term bushing contract with a peak annual sales potential of INR 117.00 crores. This contract is expected to contribute to revenue growth over the next 2-3 years, with some incremental sales anticipated in the fourth quarter of the current financial year.

Business Segment Performance

• India Engineering Business: Performed on par with the previous quarter, showing significant improvement in large-sized cages and strong traction in the bushing business.
• Romania Operations: Achieved one of their highest sales in recent quarters, indicating a potential recovery in the European market.
• China Operations: Continued positive performance, contributing to overall growth.

Future Outlook

Harsha Engineers expects low-teens top-line growth for its India engineering business and higher single-digit consolidated growth in FY2026. The company projects bushing revenue to grow by at least 30% in the current financial year.

Challenges

Despite the positive outlook, the company faces some challenges:

• Sluggish auto sector demand in India
• Softening U.S. demand
• Ongoing efforts to improve profitability at Romania and China subsidiaries

Vishal Rangwala, CEO of Harsha Engineers International Limited, commented on the results: "We are cautiously optimistic about the improving industrial demand in Europe and the positive signs we're seeing in our large-sized cages and bushing businesses. While challenges remain, we are focused on executing our growth strategy and improving performance across all our operations."

The company remains committed to its expansion plans and is optimistic about capitalizing on the growing opportunities in the engineering and renewable energy sectors.