Elecon Engineering Reports 14% Revenue Growth in Q2 FY26, Maintains Annual Guidance Despite International Delays

Elecon Engineering Company Limited , a leading manufacturer of industrial gear solutions and material handling equipment, reported a 14% year-on-year increase in consolidated revenue for Q2 FY26, reaching INR578.00 crores. The company maintained its annual guidance despite facing delays in international markets due to geopolitical volatility.

Financial Highlights

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue	578.00	508.00	+14%
EBITDA	126.00	112.00	+12%
EBITDA Margin	21.7%	22.0%	-30 bps
PAT	88.00	-	-
PAT Margin	15.2%	-	-

Segment Performance

Gear Division

Revenue: INR441.00 crores (+9% YoY)
Contribution: 76% of total revenue
EBIT: INR85.00 crores (19.2% margin)

Material Handling Equipment (MHE) Division

Revenue: INR137.00 crores (+33% YoY)
EBIT: INR35.00 crores (25.7% margin)

Order Book and Intake

Total order intake: INR688.00 crores (+28% YoY)
Gear division order intake: INR497.00 crores (+15% YoY)
MHE division order intake: INR191.00 crores (+84% YoY)
Open order book: INR1,226.00 crores (Gear: INR771.00 crores, MHE: INR455.00 crores)

Key Developments

Domestic Market Strength: The company witnessed robust demand across power, steel, and cement sectors in the domestic market.
International Business Challenges: Overseas business remained flat due to geopolitical volatility causing delays in order receipt and execution.
Product Mix: In Q2 FY26, catalog products contributed 54% to the gear division's revenue, while engineered products accounted for 46%.
Capex Plans: Elecon Engineering has outlined a capex budget of INR400.00 crores for FY26-28, aligned with its long-term strategic goals.
Interim Dividend: The Board declared an interim dividend of INR0.50 per equity share.
Defense Sector Opportunities: The company is anticipating orders for Next-Generation Missile Vessels (NGMV) and is currently manufacturing units for Next-Generation Offshore Patrol Vessels (NG-OPVs).
OEM Partnerships: Elecon has onboarded 18 OEMs and is developing various products for them, with promising inquiry levels.

Management Commentary

Mr. Prayasvin Patel, Chairman and Managing Director, stated, "We are confident of achieving our annual guidance of INR2,650.00 crores in consolidated revenue and 24% EBITDA margin in FY26. Our strong order book, healthy inquiry pipeline, domestic demand momentum, and anticipated acceleration in international execution in H2 provide the foundation for a strong finish to FY26."

Outlook

Despite short-term challenges in international markets, Elecon Engineering remains optimistic about its growth prospects. The company's focus on expanding its global footprint, with a target to increase export share to 50% of total revenue by FY30, underscores its long-term strategy for sustainable growth and market diversification.

The management's confidence in meeting annual targets, coupled with a robust order book and ongoing capacity expansion, positions Elecon Engineering well for the second half of FY26 and beyond.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.30%	-2.77%	-13.83%	+15.13%	-24.96%	+4,535.27%

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.