Elecon Engineering Company (505700) Q1 26/27 earnings summary

Executive summary

• Consolidated revenue for Q1 FY27 grew 11.9% year-on-year to ₹521 crores, led by strong Gear Division performance and robust international demand, with EBITDA at ₹109 crores and PAT at ₹70 crores, reflecting operational resilience and disciplined execution.

• Order intake surged 23% year-on-year to ₹755 crores, and open order book rose 36.8% to ₹1,518 crores, ensuring strong revenue visibility.

• Overseas revenue contributed 29% of consolidated revenue, growing 21.9% year-on-year, with strategic wins in the Port industry.

• Gear Division revenue grew 16.3% year-on-year to ₹416 crores with EBIT margin of 17.9%; MHE Division revenue declined 2.9% year-on-year to ₹105 crores but maintained a strong order pipeline.

Financial highlights

• EBITDA margin for Q1 FY27 was 21.0%, stable year-on-year despite input cost pressures; PAT margin was 13.5%.

• Gear Division EBIT was ₹75 crores (+14.7% YoY); MHE Division EBIT was ₹27 crores (-25.3% YoY, adjusted for one-time income).

• Overseas order intake grew 63% year-on-year to ₹194 crores; overseas open order book up 73% to ₹256 crores.

• Earnings per share for Q1 FY27 stood at ₹3.14 (basic and diluted).

Outlook and guidance

• Management targets low double-digit consolidated revenue growth for FY 2027, with stable EBITDA margins and a mid-term goal to reach ₹5,000 crores topline by FY 2030, with Gear Division expected to contribute 70%-75% of revenue.

• MHE Division EBITDA margin guidance at 22%-24%; Gear Division EBITDA margin expected around 24%.

• Strong open order book and robust inquiry pipeline provide confidence in sustained growth and improved execution in coming quarters.

• Focus remains on expanding global presence and leveraging advanced manufacturing and R&D investments.