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Elecon Engineering Company Ltd
NSE: ELECON BSE: 505700 INE205B01031 Industrials Electrical Equipment 🔎 Screen
NIFTY 500 Smallcap 250
₹11,321 Cr
Market Cap
33.3
P/E
2.61
PEG
21.0%
ROCE
16.6%
ROE
0.12
D/E
22.3%
OPM
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📈 Price History
Ratio Health
Excellent
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By Category
Shareholding
About

Elecon Engineering Company Ltd., incorporated in 1960. Company manufactures and sells power transmission and material handling equipment in India and internationally. In addition, it engages in the steel and non-ferrous foundry business.

✓ Strengths

No strengths data yet.

! Concerns 1
  • Working capital days have increased from 98.6 days to 166 days
Key Ratios Snapshot
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Weak quarter: revenue fell 7% YoY, EBITDA margin contracted 330bps, and adjusted PAT dropped 26% as Gear division underperformed, though MHE grew strongly and order book rose 36%. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹746 Cr
-7% YoY
EBITDA Margin
21.2%
-330 bps YoY
PAT
₹108 Cr
-26% YoY (adjusted for exceptional impairment of ₹102 Cr)
Open Order Book
₹1,292 Cr
+36% YoY
What Went Right
  • MHE division revenue surged 36.8% YoY to ₹274 Cr, with EBIT margin of 22.8%
  • Consolidated order intake rose 2% YoY to ₹657 Cr, supporting a 36% increase in open order book to ₹1,292 Cr
  • Domestic revenue grew 8.4% for full FY26, demonstrating resilient home-market demand
  • MHE FY26 adjusted revenue grew 38.1% YoY (excluding one-time arbitration income), confirming strong momentum
What to Watch
  • Gear division revenue sank 21% YoY to ₹472 Cr, with EBIT margin dropping from 24.6% to 19.3% due to delayed dispatches and weak overseas orders
  • Consolidated EBITDA fell 19% YoY to ₹158 Cr and margin contracted 330 bps to 21.2%, its lowest in recent quarters
  • Adjusted PAT (excluding goodwill impairment) declined 26% YoY to ₹108 Cr; reported PAT after exceptional item was just ₹6 Cr due to a ₹102 Cr goodwill impairment
  • Overseas revenue was flat in Q4 and declined 1% for full FY26, reflecting persistent global macro headwinds
  • Gross margin compressed 180bps YoY to 42.5%, and employee costs rose as a percentage of revenue
Investor Lens
The quarter underscores the risk of over-reliance on cyclical Gear division (~63% of revenue), which suffered from extended delivery schedules and weak overseas demand. Positively, the MHE division continues to fire on all cylinders (+36.8% YoY) and the overall order book jumped 36% to ₹1,292 Cr, providing decent near-term visibility. Management cites early signs of overseas recovery and a healthy domestic inquiry pipeline across power, steel, and cement. However, the Gear division's margin erosion and the large goodwill impairment raise questions about international operations. Next quarter, watch for Gear revenue stabilisation and margin recovery, as well as conversion of the strong order book into revenue.
From investor presentation · AI-generated analysis · Not investment advice
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📉 WEAK Net Profit falls 95.9% to ₹6.0 Cr
Revenue
Revenue declined 6.5% YoY to ₹745.6 Cr, but increased 35.1% QoQ. The current revenue is lower than the previous year's ₹798 Cr. Sequential growth is a positive sign.
Profitability
PAT plummeted 95.9% YoY to ₹6.0 Cr, with EPS down to ₹0.27 from ₹6.53. The significant decline in profitability is a concern. PBT also fell, impacted by other income and tax expenses.
Margins
OPM % decreased to 21.19% from 24.49% YoY, but improved from 19.79% QoQ. The OPM trend is mixed, with a decline in YoY comparison but an increase sequentially.
Balance Sheet
Borrowings stood at ₹273.0 Cr, with reserves at ₹2,283.0 Cr. The debt-to-equity ratio is 0.12, indicating a relatively low debt level. Total assets are ₹3,234.0 Cr.
Key Risks
The significant decline in profitability, high tax percentage of 85.14%, and negative other income of ₹84.2 Cr are key risks. These factors may impact future performance.
Outlook
The company's ability to improve profitability and maintain revenue growth will be crucial in the coming quarters. The current trends and significant decline in profitability may impact future performance and investor sentiment.
Generated by AI · Mar 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
Material Handling Equipment
136
EBIT 25
292
EBIT 62
Transmission Equipment
429
EBIT 78
472
EBIT 91
Total 565 764

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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