Eimco Elecon Q2 FY27 results: net profit up 46.4% to ₹7.83 crore, revenue up 70.9%

How did Eimco Elecon perform in Q2 FY27?

Eimco Elecon reported standalone revenue of ₹56.80 crore for Q2 FY27, up ₹23.56 crore or 70.9% from ₹33.24 crore in Q2 FY26. EBITDA was ₹10.74 crore, up ₹5.52 crore or 105.7%, and the margin increased 3.2 percentage points to 18.9%. Profit before tax was ₹10.44 crore and net profit was ₹7.83 crore, up 51.5% and 46.4% year on year. Basic EPS was ₹13.58.

Against Q1 FY27, revenue fell ₹20.72 crore or 26.7% to ₹56.80 crore, while EBITDA fell ₹3.51 crore or 24.6% to ₹10.74 crore. The EBITDA margin rose 0.5 percentage points to 18.9%. Profit before tax declined ₹9.18 crore or 46.8% to ₹10.44 crore, net profit fell ₹7.55 crore or 49.1% to ₹7.83 crore, and basic EPS declined ₹13.08 to ₹13.58. The reported figures are on a standalone basis; no consolidated comparison was provided.

What changed in Eimco Elecon's costs and profit?

Total expenses rose ₹17.63 crore or 57.6% year on year to ₹48.25 crore, with cost of materials up ₹11.52 crore or 56.6% and other expenses up ₹5.04 crore or 39.7%. Employee cost declined ₹0.41 crore or 6.9%, finance costs fell ₹0.04 crore or 25.0%, and depreciation fell ₹0.37 crore or 15.2%. The filing did not give a reason for the year-on-year movement in the cost of materials.

Other income fell ₹2.38 crore or 55.7% to ₹1.89 crore, while profit before tax increased ₹3.55 crore or 51.5% to ₹10.44 crore. Tax expense rose ₹1.07 crore or 69.5% to ₹2.61 crore, and net profit increased ₹2.48 crore or 46.4% to ₹7.83 crore. There was no exceptional item in either Q2 FY27 or Q2 FY26.

Sequentially, other income fell ₹5.87 crore or 75.6% from ₹7.76 crore in Q1 FY27, while total expenses fell ₹17.41 crore or 26.5% to ₹48.25 crore. Cost of materials rose ₹10.29 crore or 47.7%, while employee cost, finance costs, depreciation and other expenses were lower. Net profit fell ₹7.55 crore or 49.1%, and the PAT margin declined 6.0 percentage points to 13.8%.

How did the first half of FY27 go?

In the first half of FY27, standalone revenue was ₹134.32 crore, up ₹33.51 crore or 33.2% from ₹100.81 crore in H1 FY26. Total income rose ₹30.80 crore or 27.2% to ₹143.97 crore. Profit before tax was ₹30.06 crore, up ₹4.75 crore or 18.8%, while net profit increased ₹3.38 crore or 17.0% to ₹23.21 crore.

Basic EPS for H1 FY27 was ₹40.24, up ₹5.86 or 17.0% from ₹34.38 in H1 FY26. The half-year result remained above the preceding period across revenue, total income, profit before tax, net profit and EPS, with revenue growing faster than profit.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹560.61 crore, compared with ₹524.16 crore on 31 March 2026, and total equity was ₹488.41 crore against ₹467.51 crore. Borrowings rose to ₹5.75 crore from ₹2.79 crore, while cash increased to ₹1.29 crore from ₹0.66 crore. Inventories were ₹115.48 crore against ₹108.52 crore, trade receivables ₹91.18 crore against ₹72.49 crore, and trade payables ₹25.95 crore against ₹17.63 crore.

H1 FY27 operating cash flow was ₹1.84 crore, compared with ₹6.04 crore in H1 FY26. Investing cash flow was negative ₹1.2 crore against negative ₹3.64 crore, while financing cash flow was negative ₹0.01 crore against negative ₹3.27 crore. Capital expenditure was ₹2.11 crore in H1 FY27, compared with ₹5.72 crore in H1 FY26.

How has Eimco Elecon done over the last 8 quarters?

Revenue peaked at ₹77.52 crore in Q1 FY27 and fell to ₹56.80 crore in Q2 FY27, while Q2 FY26 was the low point at ₹33.24 crore. Net profit also peaked at ₹15.38 crore in Q1 FY27 before falling to ₹7.83 crore; its low was ₹5.35 crore in Q2 FY26. Revenue has risen year on year in each of the last four quarters, while profit has done so in each of the last two.

EBITDA margin reached its high of 28.2% in Q4 FY25 and its low of 15.7% in Q2 FY26. It was 18.9% in Q2 FY27, up from 18.4% in Q1 FY27. The latest quarter therefore showed lower revenue and profit than the preceding quarter, while the EBITDA margin edged higher.

What else did the company announce?

The board approved the unaudited financial results for the quarter and half-year ended 30 September 2026, together with the statutory auditors’ limited review report and the press release. The results had been reviewed and recommended by the Audit Committee. The same-day filings did not announce a dividend or fund raise.

The board also noted CFO Vishal Begwani’s resignation as Chief Financial Officer and Key Managerial Personnel, effective at the close of business hours on 30 October 2026, to pursue another professional opportunity outside the organisation. He was also to cease being the KMP responsible for determining material events and as a member of the Risk Committee. The company confirmed there were no material reasons for the resignation beyond those stated in his letter.

What did Eimco Elecon's management say?

Management said the year-on-year revenue increase was driven by execution of the order book, supported by order inflows and sustained demand. It attributed the EBITDA margin improvement to operational leverage arising from higher revenue and better capacity utilisation, together with disciplined cost management. Management also said margins were within its targeted range of 18-20% and that it remained focused on operational excellence and investment in capabilities.

Management said it remained positive about demand, supported by infrastructure development and increased mining activity, and cited an open order pipeline of ₹133 crore as of September 2026. The presentation also set out a target of 12.2 MTPA for Hindustan Copper’s ore capacity expansion by FY2029-30. It highlighted battery-operated MUV and MCAR-E, the CM-3500 continuous miner and the 10 Ton LHD, while noting risks from product mix or pricing, working-capital requirements and execution unevenness.

How did Eimco Elecon shares react?

The shares were down 1.5% at 5, 15 and 30 minutes after the filing appeared, with the reference price at ₹2,241. The reaction-day close was unchanged from the previous close of ₹2,271. By the next day’s close, the stock was up 7.5% from its pre-results close, and by the fifth session it was down 2.2%.

On the reaction day, the Industrial Products sector median was unchanged while the Nifty Microcap 250 was up 0.2%; Eimco Elecon therefore lagged the sector by 0.1 percentage points. By the next day’s close, the stock’s 7.5% gain exceeded the sector’s 0.5% median move by 7.0 percentage points. At five sessions, the stock was down 2.2% against a sector decline of 4.4%, an excess return of 2.1 percentage points. Earlier reaction-day moves included 7.2% on 8 January 2026 and declines of 4.5% on 9 July 2026, 7.4% on 14 April 2026 and 12.6% on 9 October 2025.

How did other Industrial Products companies do?

Thirty-eight other Industrial Products companies had filed for the quarter as of 4 November 2026. Their median revenue growth was 31.6%, compared with Eimco Elecon’s 70.9% growth in Q2 FY27. Of the peers with comparable revenue growth data, 30 grew more slowly than Eimco Elecon and eight grew faster.

Of the 32 peers for which profit was compared, 23 reported higher profit. Eimco Elecon’s peer figures exclude the company itself and cover the companies that had filed this quarter.