Elin Electronics (ELIN) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 operating revenue was INR 2,955 million, up 1% year-over-year, with EBITDA rising 40% to INR 186 million and PAT up to INR 94 million, driven by margin improvement and procurement efficiencies.

• Revenue growth was muted due to unseasonal rains impacting cooling and lighting products, and a key lighting customer shifting to a JV, while non-EMS businesses like precision components and medical cartridges showed strong growth.

• 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

• Operating revenue: INR 2,955 million (up 1% YoY); adjusted EBITDA: INR 186 million (up 40% YoY); PAT: INR 94 million (up from INR 59 million YoY).

• EBITDA margin improved to 5.9% from 4.5% YoY, with cost of material consumed down to 72.0% of revenue.

• CapEx in Q1 FY26 was INR 65 million.

• Consolidated basic EPS for the quarter was INR 1.93, up from INR 1.24 in Q1 FY25.

Outlook and guidance

• FY26 revenue guidance: INR 13,500 million, representing 15–18% growth over FY25, with EBITDA margin guidance at 6.0–6.5%.

• CapEx for FY26: INR 1,000–1,200 million, with INR 550–650 million for the new Bhiwadi plant and INR 500–600 million for existing business.

• Bhiwadi plant expected to be operational by March/April 2026, with revenue potential of INR 5,500–6,000 million at steady state.

• Lighting business expected to see substantial growth from Q4 FY26 and strong growth in FY27.