Elecon Engineering Company (505700) investor relations material

Executive summary

• Celebrated 75 years of operations, maintaining leadership in industrial gears and material handling equipment (MHE).

• MHE division remains a key growth driver, with specialized capabilities and strong sectoral demand.

• Gear division faced a temporary revenue decline due to delayed order inflows and customer-led deferments amid macroeconomic and geopolitical uncertainties.

• Robust order book and healthy inquiry pipeline provide visibility for future growth.

• No forward-looking guidance for FY 2027 due to ongoing uncertainties.

Financial highlights

• Q4 FY 2026 consolidated revenue: INR 746 crore, down from INR 798 crore YoY.

• Q4 EBITDA: INR 158 crore (21.2% margin); Net profit: INR 108 crore (14.5% margin), excluding a one-time goodwill impairment of INR 108 crore.

• FY 2026 adjusted consolidated revenue: INR 2,341 crore, up from INR 2,227 crore YoY (excluding INR 25 crore arbitration award in MHE division).

• FY 2026 adjusted EBITDA: INR 498 crore (21.3% margin); reported PAT: INR 341 crore, including exceptional items.

• Domestic market contributed 82% of revenue; international 18%.

Outlook and guidance

• Expect gradual normalization in order flows and execution as market conditions stabilize.

• Cautious approach to FY 2027 guidance due to macroeconomic and geopolitical uncertainty.

• Confident in maintaining or improving margins, factoring in potential raw material and logistics cost increases.

• No expectation of degrowth in FY 2027; growth anticipated but quantum uncertain.