Elecon Engineering Company Limited has reported a robust performance for the second quarter of FY27, with revenue from operations increasing by 10.5% year-on-year to ₹639 crore. Profitability also saw an uptick, with EBITDA rising 17.7% to ₹148 crore and profit after tax growing 9.8% to ₹96 crore. The company expects continued double-digit revenue growth in the second half.
Strong Q2 Performance
Elecon Engineering Company Limited announced its financial results for the second quarter ended September 30, 2026 (Q2 FY27), demonstrating significant year-on-year growth. Revenue from operations surged by 10.5% to ₹639 crore, up from ₹578 crore in Q2 FY26. The company also registered a substantial 22.7% growth compared to the previous quarter (Q1 FY27), highlighting accelerating execution.
Profitability Improvement
Profitability outpaced revenue growth, with EBITDA increasing by 17.7% to ₹148 crore, resulting in an expanded EBITDA margin of 23.1% (a 140 basis point improvement). Profit after tax (PAT) grew by 9.8% to ₹96 crore, with a PAT margin of 15.1%.
Half-Yearly Results
For the first half of FY27 (H1 FY27), revenue grew by 11.1% year-on-year, reflecting the underlying strength of the business. H1 EBITDA reached ₹257 crore, an increase of 11.4%, with a sustained EBITDA margin of 22.2%. Adjusted PAT for H1 FY27 stood at ₹167 crore.
Segment-wise Highlights
The Gear division, contributing approximately 76% of consolidated revenue, reported revenue of ₹488 crore in Q2 FY27, a 10.6% year-on-year increase. Overseas markets led this growth with a 30.3% rise. The Material Handling Equipment (MHE) division regained momentum, reporting revenue of ₹151 crore, a 10.4% increase, driven by improved execution.
Outlook and Guidance
Elecon Engineering projects continued double-digit consolidated revenue growth in the second half of the year, aiming for around 15% growth. The company is focused on protecting margins and strengthening its international market contribution. It also secured orders worth approximately USD9 million for the MHE division in the first half.
Key Developments
The company’s long-term credit rating was upgraded from AA Stable to AA Positive, and its short-term rating was reaffirmed at A1+. The lead banker also released collateral security for working capital limits, indicating a strengthened balance sheet.
An interim dividend of ₹0.50 per equity share was declared by the Board.
Source: BSE
