Elecon Engineering Company Limited has informed the Exchange about Transcript
ELECON · price
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Elecon Engineering posted Q1 FY26 consolidated revenue of INR 491 crores, up 25% YoY from INR 392 crores, though this includes a one-time INR 25 crore arbitration settlement. Adjusted EBITDA was INR 105 crores (22.6% margin) versus INR 92 crores (23.5%) last year, with margins pressured by accelerated depreciation on a new Gear facility, higher employee costs, and overseas brand-building spend. The Gear division grew 6% YoY to INR 357 crores, but EBIT margin fell to 18.4% from 23.7%; management expects it to normalize to 25% by year-end. The MHE division nearly doubled with adjusted revenue growth of 93.6%, driven by power, steel, and cement demand. Order book stands at INR 1,110 crores (INR 710 crores Gear + INR 400 crores MHE), and the company has a net cash position of INR 550 crores.
Positive for shareholders: management has reiterated full-year revenue guidance of INR 2,650 crores, guided margins to recover to 24% from Q2 onwards, and highlighted strong pipeline opportunities in defense (INR 200 crores order expected in Q2, potential INR 1,000+ crores later), power, and OEM segments, supporting growth visibility.