Elecon Engineering Company reported a 14% increase in revenue to INR 578 crores for Q2 FY26, driven by strong domestic demand. The order intake grew by 28% to INR 688 crores. While overseas business was flat due to execution delays, the company maintains a positive outlook, expecting improved performance in H2 FY26. The company declared an interim dividend of INR 0.50 per share.
Financial Performance
Elecon Engineering Company reported consolidated revenue from operations of INR 578 crores for the quarter ended September 2025 (Q2 FY26), a 14% increase compared to INR 508 crores in Q2 FY25. This growth was primarily driven by strong domestic demand across both the Gear and MHE divisions. Adjusted EBITDA for the half year stood at INR231 crores.
The company’s consolidated EBITDA for the quarter was INR126 crores, up 12% year-on-year. Profit after tax for the quarter stood at INR88 crores, representing a PAT margin of 15.2%. An interim dividend of INR0.50 per equity share was declared.
Segment Performance
The Gear division contributed 76% of total revenue in Q2 FY26. Revenue for the Gear division was INR441 crores, a 9% increase year-on-year. The Material Handling Equipment (MHE) division continued its strong growth, with revenue up 33% year-on-year to INR137 crores.
Order Book and Outlook
The company’s order intake for Q2 FY26 was INR688 crores, a strong 28% growth year-on-year. The domestic market contributed INR516 crores, up 32%, and the overseas market contributed INR172 crores, up 18%. The company expects faster conversion of orders into revenue in H2 FY26 and aims to achieve its full-year guidance.
Strategic Initiatives and Capex
Elecon maintains a robust balance sheet with a net cash position of around INR600 crores, providing flexibility for growth opportunities and capex plans. The company’s capex budget for FY26 to FY28 is estimated at INR400 crores.
Source: BSE
