Elin Electronics (ELIN) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 operating revenue was INR 2,955 million (₹2,887.62 million), up 1% year-over-year, but sequentially down due to seasonality and weather impacts on cooling and lighting products.

• EBITDA rose to INR 176 million (up 32% YOY), with adjusted EBITDA at INR 186 million, reflecting a 40% increase due to improved margins and operational efficiency.

• PAT for the quarter was INR 94 million (₹93.92 million), up from INR 59.19 million YOY.

• Liquidity remains strong with net cash of INR 1,036 million as of June 2025.

• The Board approved the appointment of Mr. Varun Surolia as Assistant General Manager and Senior Management Personnel effective August 7, 2025.

Financial highlights

• Gross margin improved by 130 bps YOY due to better sales mix and procurement efficiency.

• EBITDA margin improved to 5.9% from 4.5% year-over-year.

• Adjusted EBITDA for the quarter was INR 186 million, accounting for higher employee costs due to restructuring.

• CapEx for Q1 FY26 was INR 65 million.

• Cost of material consumed decreased to 72.0% of revenue from 73.6% year-over-year.

Outlook and guidance

• FY26 revenue guidance is INR 1,350 crores, targeting 15–18% growth over FY25.

• EBITDA margin forecasted at 6.0–6.5% for FY26.

• CapEx for FY26 projected at INR 100–120 crores, with INR 55–65 crores for the new Bhiwadi plant.

• Bhiwadi plant expected to be operational by March/April 2026, with revenue potential of INR 550–600 crores at steady state and 20% ROCE.

• Working capital days targeted to improve to 45–50 through better inventory and payables management.