Harsha Engineers International Limited , a leading manufacturer of precision bearing cages, has reported mixed results for the second quarter of fiscal year 2026, with a notable turnaround in its Romania subsidiary.

Key Highlights

• Consolidated engineering business revenue reached INR 363.00 crores, up from INR 349.00 crores in the previous quarter
• India Engineering business achieved 15% quarter-over-quarter topline growth and 10% half-yearly growth
• Romania subsidiary posted strong 38% topline growth and positive EBITDA after several quarters of losses
• Combined subsidiary losses reduced to INR 2.00 crores in the first half from INR 17.00 crores in the previous full year
• EBITDA margins declined due to raw material price pass-through lag and operational challenges at the new Bhayla facility

Segment Performance

Bronze Bushing Vertical

• Robust 25% sales growth, reaching INR 55.00 crores in the first half
• Management expects to achieve INR 130.00 crores in sales for the full year, up from INR 100.00 crores last year

Large-Sized Cages

• Strong 33% growth, with sales of INR 27.00 crores in the first half
• Management remains optimistic about long-term potential in this segment

Stamping Business

• Experienced a slight degrowth, primarily due to reduced demand in the air conditioning segment

Romania Subsidiary Turnaround

The company's Romania subsidiary has shown significant improvement, posting a 38% topline growth and achieving positive EBITDA for the first time in several quarters. This turnaround is attributed to:

1. Improved finished product sales
2. Increased demand for semi-finished casting
3. Ongoing cost reduction initiatives

Challenges and Outlook

While the company has seen improvements in various segments, it faces some challenges:

1. EBITDA margin decline due to raw material price pass-through lag
2. Operational challenges at the new Bhayla facility under Harsha Advantek subsidiary
3. Cautious outlook on the sustainability of European demand

Despite these challenges, management maintains guidance for high single-digit consolidated topline growth for the full year.

Capex and Future Plans

• The company spent INR 68.00 crores on capex in the first half of FY2026
• Developed 258 new SKUs, indicating a strong product pipeline
• Management expects the Bhayla facility to reach optimal capacity utilization in 2-2.5 years

Vishal Rangwala, CEO of Harsha Engineers International Limited, commented on the results, stating, "Overall, our performance is in line with our expectations. We are delighted that after several quarters, Harsha Romania has posted strong top line growth and reported positive EBITDA, which further strengthens our optimism."

The company remains focused on improving its product mix, particularly in the Romania subsidiary, and capitalizing on growth opportunities in the bronze bushing and large-sized cage segments. While challenges persist, Harsha Engineers' management appears cautiously optimistic about the company's future prospects.

Harsha Engineers , a prominent player in the Indian manufacturing sector, has released its Q2 financial results, showcasing growth in revenue and profit despite conflicting EBITDA data.

Financial Highlights

Harsha Engineers reported a consolidated net profit of ₹364.00 million for the second quarter, marking a significant increase from ₹290.00 million in the same period last year. The company's revenue also saw an uptick, rising to ₹3.80 billion from ₹3.50 billion year-over-year.

EBITDA Discrepancy

The company's EBITDA figures present conflicting data:

• One report indicates EBITDA of ₹535.00 million compared to ₹539.00 million year-over-year.
• A correction shows ₹35.00 million versus ₹539.00 million year-over-year.

This discrepancy in EBITDA reporting may require further clarification from the company.

Margin Pressure

Despite the growth in revenue and profit, Harsha Engineers experienced a decline in its EBITDA margin. The margin decreased to 14.14% from 15.29% in the previous year, suggesting potential cost pressures or changes in the company's operational efficiency.

The mixed results present a complex picture of Harsha Engineers' financial performance. While the company has shown growth in key areas such as revenue and net profit, the conflicting EBITDA data and margin decline warrant closer attention from investors and analysts alike.