Eimco Elecon (India) Ltd experienced a remarkable 16% stock surge following the announcement of its strong Q3FY26 financial results. The mining equipment manufacturer's shares reached an intraday high of ₹1,884.00, significantly higher than the previous close of ₹1,624.00, with the company currently maintaining a market capitalization of ₹1,056.00 crores.

Strong Q3FY26 Financial Performance

The company delivered exceptional operational and financial performance in Q3FY26, demonstrating significant growth across key metrics. The quarterly results showcase substantial improvements in both revenue and profitability compared to the previous quarter and year-ago period.

The company's revenue performance shows consistent strength with ₹63.00 crores in Q3FY26, representing a substantial 90% quarter-on-quarter increase from Q2FY26's ₹33.00 crores and a solid 40% year-on-year growth from Q3FY25's ₹45.00 crores. Net profit performance was even more impressive, with ₹12.00 crores in Q3FY26 marking a 133% QoQ growth and 102% YoY increase.

Nine-Month Performance and Historical Metrics

While the quarterly performance was strong, the nine-month FY26 results present a mixed picture. The company's 9MFY26 revenue declined by 10% to ₹163.00 crores from ₹182.00 crores in 9MFY25. Similarly, nine-month net profits decreased by 5% to ₹32.00 crores from ₹34.00 crores in the previous year.

Despite the nine-month decline, the company maintains strong long-term growth metrics with a three-year profit CAGR of 78% and sales CAGR of 43%. The stock has delivered a 62% compounded return over the last three years, trading at a PE ratio of 25, which is notably lower than the industry average of 32.

Strategic Land Acquisition

In a strategic move to support long-term growth objectives, Eimco Elecon's board approved the acquisition of a substantial land parcel. The company will purchase 35,056 square meters of freehold land in Kheda, Gujarat, for ₹47.00 crores. This acquisition aligns with the company's expansion plans and future business outlook.

Company Profile and Market Position

Eimco Elecon (India) Limited operates as a manufacturer and marketer of equipment for underground and opencast mining operations. Headquartered in Vallabh Vidyanagar, Gujarat, the company holds a significant position in India's mining equipment industry. The company pioneered the introduction of intermediate mining technologies in India, including Side Dump Loaders, Load Haul Dumpers (LHDs), and Rocker Shovel Loaders, contributing to enhanced productivity and mechanization in Indian mines.

The company serves marquee clients including Tata Steel, Coal India, and Hindustan Zinc, establishing itself as a key player in the mining equipment sector. With current quarter revenue and net profit representing approximately 66% of the previous fiscal year's figures of ₹246.00 crores and ₹48.00 crores respectively, the company shows potential for continued growth momentum.

Eimco Elecon (India) Ltd has delivered exceptional financial performance in Q3FY26, demonstrating strong operational efficiency and remarkable profitability improvements. The company's Board of Directors approved the quarterly results and a significant land acquisition during their meeting held on January 8, 2026.

Q3FY26 Financial Performance

The company reported outstanding financial results for the quarter ended December 31, 2025, with substantial growth across all key metrics as per the unaudited financial results reviewed by statutory auditors.

Nine-Month Performance Highlights

For the nine months ended December 31, 2025, the company maintained strong profitability despite slight revenue decline compared to the previous year.

Board Approves Strategic Land Acquisition

The Board of Directors approved the purchase of approximately 35,056 square meters of freehold land in Kanjari, Ta. Nadiad, Dist. Kheda, Gujarat, for approximately ₹473.30 crores (excluding stamp duty and other charges). This strategic acquisition aims to support the company's future business outlook and expansion plans.

Regulatory Compliance and Governance

The unaudited financial results have been reviewed and recommended by the Audit Committee and approved by the Board of Directors. The statutory auditors K C Mehta & Co LLP have reviewed the financial results and expressed an unmodified conclusion. The Board meeting commenced at 11:30 a.m. IST and concluded at 1:20 p.m. IST on January 8, 2026.

Operational Excellence and Future Outlook

The company's Q3FY26 performance reflects exceptional operational efficiency with significant margin expansion. The revenue growth of 37.66% coupled with net profit surge of 102.22% demonstrates strong pricing power and effective cost management capabilities. As a prominent player in the capital goods sector specializing in non-electrical equipment, the strategic land acquisition positions the company for future expansion and indicates management's confidence in long-term growth prospects.