Elin Electronics (ELIN) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 operating revenue rose 23% year-over-year to INR 3,745 million, driven by strong growth in appliances and fans, new product launches, and customer acquisitions.

• EBITDA grew 80% year-over-year to INR 204 million, with margin improvement to 5.4% in Q2 FY26.

• Profit after tax increased 115% year-over-year to INR 103 million, reflecting improved operational efficiencies.

• Net cash stood at INR 942 million as of September 2025, with working capital days improved to 53 and absolute working capital declining despite higher sales.

• Unaudited consolidated and standalone financial results for the quarter and half year ended September 30, 2025, were reviewed and approved by the Board on November 10, 2025.

Financial highlights

• H1 FY26 revenue reached INR 6,700 million, up from INR 5,981 million year-over-year.

• Q2 FY26 consolidated net profit was INR 103.43 million, up from INR 47.81 million in Q2 FY25.

• Home Appliance segment revenue rose from INR 830 million to INR 1,400 million, with kitchen and home care up 98% year-over-year.

• Lighting, Fans, and Switch segment revenue was INR 724 million, up from INR 666 million year-over-year, with strong fan growth offsetting a marginal lighting decline.

• Net working capital days improved to 53 from 65 year-over-year.

Outlook and guidance

• FY26 revenue guidance is INR 13.5 billion (15% growth), but may be impacted by up to 3% due to halted US exports from August 2025 amid tariff issues.

• EBITDA margin for FY26 is expected at 5.5%-6%, with H1 at 5.7%; export margins are higher than domestic.

• CapEx for FY26 is projected at INR 1,000-1,100 million, with INR 650 million for the new Bhiwadi plant and INR 350-400 million for existing business growth.

• Bhiwadi plant expected to be operational by March/April 2026, with revenue potential of INR 5,000-6,000 million and steady-state EBITDA margin of 7%-7.5%.

• Targeting working capital days of 45-50.