Elecon Engineering Company announced its Q3FY26 financial results with consolidated revenue of ₹552.00 crores, marking a growth of 4.30% year-on-year. However, the capital goods manufacturer faced significant margin pressures with EBITDA declining 23.40% and profitability metrics under strain despite modest revenue expansion.

Consolidated Financial Performance

The company's Q3FY26 results demonstrated contrasting performance between revenue growth and profitability metrics. While revenue expanded modestly, both EBITDA and net profit experienced substantial declines during the quarter.

Segment-wise Performance Analysis

The company's two main divisions showed divergent performance trends during Q3FY26. The Gear division maintained flat growth while the Material Handling Equipment (MHE) division demonstrated stronger momentum.

Gear Division Results

MHE Division Performance

Geographic Revenue Distribution

The company maintained its revenue mix between domestic and overseas markets during Q3FY26. Domestic revenue contributed ₹421.00 crores (76%) while overseas revenue accounted for ₹131.00 crores (24%), maintaining the same proportion as the previous year.

Order Book and Business Outlook

Despite the challenging quarterly performance, Elecon Engineering reported strong order intake of ₹701.00 crores for Q3FY26. The company's order book as of December 31, 2025, stood at ₹1,372.00 crores, providing good visibility for future revenue execution.

Management Commentary

Chairman & Managing Director Prayasvin B. Patel highlighted the company's market leadership position in Industrial Gear Solutions and Material Handling Equipment. He emphasized the strategic objective of generating 50% of consolidated revenue from international markets by FY30, supported by strengthening relationships with global OEMs and continued brand-building initiatives across multiple geographies.

Elecon Engineering Company Limited has secured a favorable outcome in its GST-related appeal case, receiving approval from the Office of the Deputy Commissioner of State Tax (Appeal), Vadodara on January 7, 2026. The company disclosed this development to stock exchanges on January 8, 2026, in compliance with SEBI listing regulations.

Case Background and Resolution

The appeal was filed against an order passed by the State Tax Officer, Mobile Squad Dahod, Division-5, Vadodara, regarding the detention of a transport vehicle. The detention occurred because the transporter failed to produce the prescribed documents under Section 129 of the CGST Act. The Deputy Commissioner of State Tax (Appeal) has now approved the company's appeal application, ruling in favor of Elecon Engineering.

Financial Impact and Penalty Details

The case involved significant financial implications for the company, as detailed in the regulatory filing:

The company had paid the penalty amount of ₹14,01,764 under dispute to secure the release of the detained transport vehicle. With the favorable ruling now in place, this penalty amount is expected to be refunded to the company.

Regulatory Compliance and Timeline

Elecon Engineering had initially informed the stock exchanges about this matter on March 26, 2025. The company received the favorable order on January 7, 2026, and promptly disclosed the outcome to BSE and NSE on January 8, 2026, demonstrating adherence to regulatory disclosure requirements under SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Business Operations Impact

According to the company's filing, the favorable order has no negative financial implications on the company's operations or other activities. The resolution of this GST-related matter removes a regulatory overhang and positions the company to recover the penalty amount paid during the dispute period. This outcome reflects positively on the company's compliance management and legal strategy in handling regulatory challenges.