Elecon Engineering Company Limited has informed the Exchange regarding a press release dated July 11, 2025, titled "Press Release of Board Meeting held on Friday, 11th July, 2025".
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Awaiting price reaction for this filing.
Elecon Engineering announced its Q1FY26 (quarter ended 30 June 2025) consolidated results. Revenue grew 25% year-on-year to Rs 491 crores, driven by the MHE (Material Handling Equipment) division which more than doubled to Rs 133 crores (helped by a Rs 25 crore one-time arbitration settlement income). The Gear division posted steady growth of 6.1% to Rs 357 crores but saw EBIT margin dip to 18.4% due to higher employee costs and accelerated depreciation. EBITDA rose 41% YoY to Rs 130 crores (margin 26.6%), and reported PAT jumped 139% YoY to Rs 175 crores, boosted by Rs 35 crores of arbitration-related income and an Rs 80 crore exceptional gain from reclassification of investment in EIMCO Elecon. Management reiterated its FY26 revenue target of Rs 2,650 crores and the long-term goal of 50% revenue from international markets by FY30.
Headline PAT growth looks very strong but is inflated by one-time arbitration income and an exceptional investment gain, so underlying earnings momentum is more modest. Investors should focus on the core Gear division's softer margin and watch MHE's organic growth as a key driver for the stock going forward.