Elin Electronics Limited , a prominent player in the Indian electronics manufacturing sector, has reported a robust 23% year-on-year growth in operating revenue for Q2 FY26, reaching INR 375.00 crores. The company's performance was driven by strong growth in its appliance and fan business, attributed to new product launches and customer acquisitions.

Financial Highlights

• Revenue: INR 375.00 crores (up 23% YoY)
• EBITDA: INR 20.40 crores (up 80% YoY)
• PAT: INR 10.30 crores (up from INR 4.80 crores YoY)
• Net Cash Position: INR 94.00 crores as of September 2025
• Working Capital: Improved to net 53 days

Segment Performance

The fan business showed particularly strong growth, nearly doubling year-on-year, primarily driven by the BLDC ceiling fan business. The Home Appliance segment saw significant growth, with revenue increasing from INR 83.00 crores to INR 140.00 crores.

Challenges and Outlook

Despite the strong performance, Elin Electronics faced some challenges:

1. Elevated power costs due to unseasonal rain, leading to higher diesel consumption and lower solar power generation.
2. Higher international air freight charges to accommodate increased customer demand.
3. Export business to the USA has been stalled since August 2025 due to tariff situation uncertainty.

The company is constructing a new facility at Rewari with a total project cost of INR 100.00 crores, expected to be operational by March-April 2026. This expansion aims to cater to medium-sized appliances, including air coolers, chimneys, and ovens.

Future Strategy

Elin Electronics is positioning itself as a one-stop shop for high-volume home appliances and durables for OEMs. The company plans to:

1. Expand into medium appliances such as air coolers, chimneys, and ovens.
2. Explore opportunities in washing machine motors and air conditioner motors, anticipating potential growth due to upcoming BIS regulations.
3. Gradually increase ODM (Original Design Manufacturing) share in its business.

Management Commentary

Sanjeev Sethia, Director of Elin Electronics, stated, "We remain optimistic about our business going forward, supported by the government's push for Make in India and disincentivizing imports via BIS and QCO regulations."

The company maintains its revenue guidance for FY26, targeting 15% growth, although it cautions that the ongoing export challenges to the USA may impact revenues by up to 3%.

As Elin Electronics continues to diversify its product portfolio and expand its manufacturing capabilities, it appears well-positioned to capitalize on the growing demand for domestically manufactured electronic appliances in India.

Elin Electronics , a leading electronics manufacturing services (EMS) company, has announced a downward revision of its margin forecast and anticipates a potential impact on its annual revenue due to ongoing tariff issues. The company, which serves major brands in lighting, fans, and home appliances, is navigating through challenging market conditions.

Revised Margin Forecast

Elin Electronics has adjusted its margin forecast for the current fiscal year. The company now expects its margins to be in the range of 5.5% to 6%, down from the previous guidance of 6% to 6.5%. This revision reflects the company's response to the current market dynamics and tariff-related challenges.

Revenue Impact

The company has indicated that it expects up to a 3% impact on its annual revenue due to the ongoing tariff issues. While the exact nature of these tariff challenges has not been specified, they appear to be significant enough to affect the company's top-line performance.

Recent Financial Performance

Despite the challenges, Elin Electronics has shown resilience in its recent financial results. For the quarter ended September 30, 2025, the company reported:

The company has demonstrated strong year-over-year growth across key financial metrics, with revenue increasing by 23.59%, EBITDA by 80.53%, and profit after tax more than doubling with a 115.42% increase.

Business Segments Performance

Elin Electronics operates across various product verticals:

1. LED Lighting, Fans & Switches: Revenue for this segment stood at ₹724 crore in Q2 FY2026.
2. Home Appliances: This segment showed significant growth, with revenue reaching ₹1,406 crore.
3. Fractional Horsepower Motors: Revenue for this segment was ₹735 crore.
4. Other EMS Products: This category contributed ₹101 crore to the quarter's revenue.

Looking Ahead

While Elin Electronics faces challenges from tariff issues, its diverse product portfolio and strong market presence in the EMS sector may help in navigating these headwinds. The company's ability to maintain growth in revenue and profitability, despite revising its margin forecast, suggests a degree of operational resilience.

Investors and market watchers will likely keep a close eye on how Elin Electronics manages these tariff-related challenges and whether the company can mitigate the projected impact on its annual revenue through strategic initiatives or market expansion efforts.