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Elecon Engineering Company Ltd
NSE: ELECON BSE: 505700 INE205B01031 Industrials Electrical Equipment 🔎 Screen
NIFTY 500 Smallcap 250
₹4 Cr
Market Cap
39.7
P/E
1.09
PEG
20.9%
ROCE
16.4%
ROE
0.12
D/E
21.0%
OPM
+34.3%
% from 52W High
19
α RS
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📈 Price History
Ratio Health
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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
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Mixed — revenue grew 11.9% YoY on an adjusted basis and order intake rose 23%, but EBITDA margin contracted 160 bps and MHE revenue slipped 2.9% due to project timing. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹521 Cr
+11.9% YoY adjusted (reported +6.1%)
EBITDA Margin
21.0%
-160 bps YoY adjusted
PAT
₹70 Cr
+2.3% YoY adjusted
Order Intake
₹755 Cr
+23% YoY
What Went Right
  • Highest-ever Q1 revenue of ₹521 Cr, driven by gear division growth of 16.3% to ₹416 Cr
  • Order intake surged 23% YoY to ₹755 Cr, with gear intake +18.8% and MHE intake +38.1%
  • Open order book expanded 37% YoY to ₹1,518 Cr, providing strong revenue visibility
  • Overseas revenue grew 21.9% to ₹151 Cr, now 29% of total revenue
  • MHE division secured a ₹21 Cr overseas port order, signalling strategic global progress
What to Watch
  • EBITDA margin fell 160 bps to 21.0% due to higher input costs and unfavourable mix
  • MHE revenue declined 2.9% (adjusted) on temporary project execution softness
  • MHE EBIT margin dropped sharply from 33.4% (adjusted) to 25.6%
  • Domestic revenue was nearly flat at +0.8% YoY, held back by MHE project timing
  • Gross margin contracted 700 bps to 45.5%, partly reflecting arbitration income in the base quarter
Investor Lens
The core thesis remains intact: a record Q1 order book and double-digit gear revenue growth underline Elecon's market leadership. However, margin compression and the MHE division's execution lag are watchpoints. Investors should monitor Q2 MHE revenue recovery, raw material cost trends, and the pace of order conversion from the ₹1,518 Cr backlog. Overseas momentum is a positive, but domestic flatness needs to reverse to sustain overall growth. The absence of explicit forward guidance leaves room for caution on near-term earnings visibility.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Revenue up 6% YoY but PAT down 60%; margins shrink.
Revenue
Revenue increased 6.1% YoY to ₹521 Cr, but dropped 30.2% sequentially, indicating seasonality or demand slowdown.
Profitability
Net profit fell 60% YoY to ₹70 Cr, with EPS declining to ₹3.14 from ₹7.82. QoQ profit surged 1066.7% from a low base, suggesting recovery.
Margins
Operating margin contracted to 21% from 27% YoY, indicating cost pressures or lower realization. QoQ margin was flat at 21%.
Cash Flow
No cash flow data provided in the quarterly summary.
Balance Sheet
Debt-to-equity ratio is low at 0.12, indicating a healthy balance sheet. No detailed data on reserves provided.
Key Risks
Margin compression due to rising costs or competition, revenue volatility from sharp QoQ decline, and dependency on industrial capex cycles.
Outlook
Near-term growth may be subdued given sequential revenue decline and margin pressure. However, low debt and strong ROCE/ROE provide financial resilience.
Generated by AI · Jun 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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