Elecon Engineering's Gear Division Reports Robust Order Book of Rs 710 Crores

1 min read     Updated on 14 Jul 2025, 09:19 AM
scanxBy ScanX News Team
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Overview

Elecon Engineering Company Limited's Gear Division has reported an open order book worth Rs 710.00 Crores as of June 30, 2025. This substantial order book indicates robust demand for the company's gear products and solutions, potentially contributing to business stability and reflecting market confidence in Elecon's capabilities. The Gear Division caters to various industries including power, steel, cement, sugar, mining, rubber, and paper.

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*this image is generated using AI for illustrative purposes only.

Elecon Engineering Company Limited , a leading player in the material handling equipment and transmission products sector, has reported a strong order book for its Gear Division. According to a recent concall update, the company's Gear Division had open orders worth Rs 710.00 Crores as of June 30, 2025.

Strong Order Book Highlights

The substantial order book of Rs 710.00 Crores for Elecon Engineering's Gear Division indicates:

  • Robust Demand: The significant value of open orders suggests a healthy demand for the company's gear products and solutions.
  • Business Stability: A strong order book provides visibility for future revenue streams, potentially contributing to business stability.
  • Market Confidence: The sizeable order book may reflect customer confidence in Elecon Engineering's capabilities and product quality.

Gear Division's Significance

Elecon Engineering's Gear Division is known for its comprehensive range of industrial gears and gear boxes. The division caters to various industries, including:

  • Power
  • Steel
  • Cement
  • Sugar
  • Mining
  • Rubber
  • Paper

The reported order book of Rs 710.00 Crores underscores the division's important role in Elecon Engineering's overall business portfolio.

Looking Ahead

While the company has not provided specific details about the nature of these orders or their expected execution timeline, the substantial order book value suggests a potentially busy period ahead for Elecon Engineering's Gear Division.

Investors and industry observers will likely keep a close watch on how these orders translate into revenue and profitability for the company in the coming quarters. The execution of these orders and any additional order inflows could be key factors in shaping the company's financial performance.

As always, stakeholders are advised to consider multiple factors and consult financial experts when making investment decisions based on this information.

Historical Stock Returns for Elecon Engineering Company

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+1.30%-2.98%-6.34%+10.80%-5.06%+4,763.18%
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Elecon Engineering Unveils Rs 435 Crore Capex Plan, Projects Rs 2,650 Crore Revenue for FY26

1 min read     Updated on 14 Jul 2025, 09:14 AM
scanxBy ScanX News Team
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Overview

Elecon Engineering Company has unveiled a Rs 435 crore capital expenditure plan, with Rs 400 crore allocated to the Gear Division and Rs 35 crore to the Material Handling Equipment (MHE) Division. The company projects a consolidated revenue of Rs 2,650 crore for FY26, excluding an additional Rs 25 crore expected from an arbitration settlement. The MHE Division is expected to contribute Rs 650 crore with a 23% sustainable profit margin.

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*this image is generated using AI for illustrative purposes only.

Elecon Engineering Company , a leading player in the engineering sector, has announced ambitious capital expenditure plans and revenue projections for the fiscal year 2026 (FY26), signaling a strong focus on growth and expansion.

Substantial Capital Expenditure Plans

The company has outlined a significant capital expenditure (capex) strategy, allocating funds across its two primary divisions:

  • Gear Division: A substantial investment of Rs 400.00 crore is planned for this segment.
  • Material Handling Equipment (MHE) Division: An additional Rs 35.00 crore is earmarked for this division.

This total capex of Rs 435.00 crore underscores Elecon Engineering Company's commitment to enhancing its operational capabilities and market position.

Revenue Projections for FY26

Elecon Engineering Company has set forth ambitious revenue targets for FY26:

  • Consolidated Revenue: The company expects to achieve a consolidated revenue of Rs 2,650.00 crore.
  • MHE Division: Projected revenue of Rs 650.00 crore with an impressive 23% sustainable profit margin.

It's worth noting that the consolidated revenue projection excludes an additional Rs 25.00 crore expected from an arbitration settlement.

Division-wise Performance Expectations

The company's projections highlight the significant role of the MHE Division in its overall growth strategy:

Division Projected Revenue (FY26) Profit Margin
MHE Rs 650.00 crore 23%

The projected 23% sustainable profit margin for the MHE Division indicates the company's confidence in this segment's profitability and operational efficiency.

Implications for Growth

These announcements reflect Elecon Engineering Company's strategic vision for sustained growth and profitability. The substantial capex investments, particularly in the Gear Division, suggest the company's intent to expand its capabilities, potentially to meet growing market demand or to introduce new product lines.

The projected revenue figures and profit margins, especially for the MHE Division, indicate the company's optimistic outlook on market conditions and its competitive position in the engineering sector.

As Elecon Engineering Company moves forward with these plans, stakeholders will likely be keen to monitor the company's progress in implementing its capex strategy and achieving its ambitious revenue targets for FY26.

Historical Stock Returns for Elecon Engineering Company

1 Day5 Days1 Month6 Months1 Year5 Years
+1.30%-2.98%-6.34%+10.80%-5.06%+4,763.18%
Elecon Engineering Company
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