Elecon Engineering reported consolidated revenue of ₹746 crore for Q4 FY26, with full-year adjusted revenue reaching ₹2,341 crore. Despite near-term geopolitical headwinds and temporary dispatch deferments, the company maintains a robust outlook. The MHE division achieved 37% year-on-year revenue growth in Q4, while the Gear division remains a cornerstone, supported by a strong order book of ₹894 crore and a focus on expanding its international presence through a new subsidiary in Mexico.
Financial Highlights of FY26
For the quarter ended March 2026, Elecon Engineering recorded consolidated revenue of ₹746 crore, with an EBITDA of ₹158 crore and a margin of 21.2%. Reported PAT for the full year FY26 stood at ₹341 crore, factoring in one-time items, including an exceptional goodwill impairment of ₹102 crore and mark-to-market investment gains. The company continues to maintain a strong balance sheet with a net cash balance of approximately ₹700 crore.
Segment Performance
The Gear Division contributed 63% of the Q4 revenue, reporting ₹472 crore. While performance was impacted by delayed order inflows and customer-led delivery deferments due to geopolitical uncertainties, demand fundamentals remain strong across the steel, cement, and power sectors. Conversely, the Material Handling Equipment (MHE) Division continued its impressive trajectory, contributing 37% of Q4 revenue and achieving a 36.8% year-on-year growth. The MHE division is supported by long-term trends in industrial automation and an order book closing at ₹398 crore as of March 31, 2026.
Strategic Outlook and Future Growth
Management remains optimistic about long-term growth, citing a healthy project pipeline and ongoing capital expenditure plans. To strengthen its global footprint, the company has established a step-down subsidiary in Mexico to better serve the Latin American market. While the company has chosen to exercise caution regarding specific FY27 guidance due to an evolving macroeconomic environment, it is committed to its strategy of portfolio diversification and the enhancement of in-house R&D capabilities. With total open orders of ₹1,292 crore, Elecon is well-positioned to capitalize on sustained capital investments in core industrial sectors.
Source: BSE
