Elecon Engineering Company (505700) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue was ₹638.94 crore, up 10.5% YoY; EBITDA rose 17.7% to ₹148 crore and margin expanded 140 bps to 23.1%.

• H1 revenue reached ₹1,159.50 crore; adjusted growth was 11.1%, with adjusted EBITDA up 11.4% to ₹257 crore.

• H1 consolidated order intake rose 15.3% to ₹1,501 crore; open orders reached ₹1,635 crore, up 33.4% YoY.

Financial highlights

• Q2 PAT was ₹96.35 crore versus ₹87.72 crore YoY; EPS was ₹4.29 versus ₹3.91.

• Q2 gross profit rose 18.1% to ₹295 crore, with gross margin up 300 bps to 46.1%; EBIT increased 13.8% to ₹135 crore at a 21.1% margin.

• H1 reported revenue grew 8.5% and reported EBITDA 0.4%; adjusted for prior-period one-time MHE arbitration income, growth was 11.1% and 11.4%, respectively.

• Adjusted H1 PAT was ₹167 crore, up 6.5%; adjusted PAT margin was 14.4% versus 15.0%.

• H1 reported PAT was ₹166.70 crore versus ₹263.16 crore; prior-year results included exceptional fair-value gains.

Outlook and guidance

• MHE execution improved from Q1; faster execution is expected through the remainder of H2 as project clearances progress.

• The ₹1,635 crore consolidated backlog and divisional order books support revenue visibility and confidence in customer demand.

• H2 FY27 consolidated revenue growth guidance is mid-double digit, indicated at ~15%; minimum EBITDA margin guidance is at least FY26's level.

• MHE EBIT margin guidance is 22%-24%; Gear's target is 20%-22%, with H1 margin at 20.2% and Q2 at 22.1%.

• FY30 ambitions include ₹5,000 crore revenue and 50% overseas turnover, supported by organic growth, deeper market penetration and potential acquisitions or strategic tie-ups.