India · Delayed Price · Currency is INR Elecon Engineering Company Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY 2026 saw a 6% YoY revenue growth, with MHE division up 37% and Gear division down 21% due to order delays. Strong order book, robust cash position, and prudent CapEx support future growth, though guidance remains cautious amid geopolitical uncertainties.
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Q3 FY26 saw 4.3% revenue growth, with MHE Division up 16% and Gear Division flat due to execution delays. Margins were impacted by product mix and one-time costs, but a strong order book and robust pipeline support future growth, despite revised near-term guidance.
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Q2 FY 2026 saw 14% YoY revenue growth, strong domestic demand, and robust order inflows, though international execution faced delays due to geopolitical issues. Margins were temporarily impacted but are expected to normalize in H2, with management confident of meeting FY 2026 guidance.
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Q1 FY26 revenue grew 25% YoY to INR 491 crore, led by strong domestic demand and robust order inflows. Gear Division margins were impacted by higher costs and new capacity, while MHE saw record margins and a one-time arbitration gain. Growth visibility remains strong with a healthy order book and CapEx plans.
Fiscal Year 2025
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Record revenue and profitability were achieved in FY 2025, with strong growth in both Gear and MHE divisions. FY 2026 guidance targets INR 2,650 crore revenue and 24% EBITDA margin, driven by a robust order book and sectoral demand, especially in power.
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Q3 FY2025 saw 11.7% revenue growth and margin expansion, led by strong MHE performance, while Gear division growth was muted due to sectoral headwinds. FY2025 revenue guidance was revised down by 3%, but EBITDA margin is expected to remain at 24%.