Elecon Engineering Declares Interim Dividend, Reports Strong Q2 FY26 Performance
Elecon Engineering announced Q2 FY26 results with revenue up 13.8% YoY to Rs 578.00 crores. EBITDA increased 11.9% to Rs 126.00 crores, while PAT remained flat at Rs 88.00 crores. The company declared an interim dividend of Rs 0.50 per share. The Gear division saw 8.9% revenue growth, while the MHE division reported 33% growth. Order intake grew 28% YoY to Rs 688.00 crores, with an open order book of Rs 1,226.00 crores. The company aims to generate 50% of consolidated revenue from international markets by FY30.
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Elecon Engineering Company Limited , one of Asia's largest industrial gear solution providers, has announced an interim dividend and reported robust financial results for the second quarter of fiscal year 2025-26 (Q2 FY26).
Interim Dividend Declaration
The Board of Directors has declared an interim dividend of Rs 0.50 per equity share (50% on face value of Rs 1.00) for FY 2025-26. Shareholders holding shares as of the record date, October 16, 2025, will be eligible for this dividend.
Q2 FY26 Financial Highlights
Elecon Engineering reported a strong performance for Q2 FY26:
| Metric | Q2 FY26 | Q2 FY25 | YoY Change |
|---|---|---|---|
| Revenue | Rs 578.00 crores | Rs 508.00 crores | +13.8% |
| EBITDA | Rs 126.00 crores | Rs 112.00 crores | +11.9% |
| EBITDA Margin | 21.7% | 22.1% | -40 bps |
| Profit After Tax | Rs 88.00 crores | Rs 88.00 crores | 0% |
| PAT Margin | 15.2% | 17.3% | -210 bps |
The company's revenue growth was driven by strong performances in both its Gear and Material Handling Equipment (MHE) divisions.
Segment-wise Performance
Gear Division
- Revenue: Rs 441.00 crores (8.9% YoY growth)
- EBIT: Rs 85.00 crores
- EBIT Margin: 19.2%
The Gear division saw steady demand from domestic power, steel, and cement industries. However, EBIT margin was impacted by increased employee costs and changes in product mix.
MHE Division
- Revenue: Rs 137.00 crores (33.0% YoY growth)
- EBIT: Rs 35.00 crores (34.9% YoY growth)
- EBIT Margin: 25.7%
The MHE division continued its strong growth trajectory, with significant revenue growth and improved margins.
Order Book and Future Outlook
Elecon reported a robust order intake of Rs 688.00 crores for Q2 FY26, representing a 28% YoY growth. The company's open order book stood at Rs 1,226.00 crores as of September 30, 2025, compared to Rs 966.00 crores a year ago.
Commenting on the results, Shri Prayasvin B. Patel, Chairman & Managing Director, said, "Our current order book, along with Order-in-take outlook across both domestic and overseas markets, reinforces our confidence in meeting the full-year guidance."
The company remains focused on expanding its international presence, aiming to generate 50% of its consolidated revenue from international markets by FY30.
Conclusion
Elecon Engineering's Q2 FY26 results demonstrate the company's resilience and growth potential in both domestic and international markets. With a strong order book and strategic focus on innovation and expansion, Elecon is well-positioned to capitalize on opportunities in the industrial gear and material handling equipment sectors.
Historical Stock Returns for Elecon Engineering Company
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -7.78% | -4.74% | -7.32% | +27.70% | -20.68% | +4,619.07% |
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