Elin Electronics (ELIN) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 operating revenue rose 10% year-over-year to INR 2,935 million, driven by strong growth in appliances and fan business, partially offset by a decline in lighting and precision components due to planned maintenance.

• Consolidated EBITDA grew 57% year-over-year to INR 119 million, reflecting cost-saving initiatives, despite margin pressure from higher raw material costs.

• Profit after tax for Q3 FY26 surged 162% YoY to INR 38 million, with net cash position at INR 590 million and net working capital days at 68.

• Liquidity remains strong, with working capital days increased due to higher inventory, expected to normalize by quarter-end.

Financial highlights

• Q3 FY26 revenue: INR 2,935 million (up 10% YoY); EBITDA: INR 119 million (up 57% YoY); PAT: INR 38 million (up 162% YoY); tax expense: INR 3.8 crores.

• Q3 FY26 EBITDA margin improved to 4.0% from 2.8% YoY; 9MFY26 EBITDA margin at 5.2%.

• CapEx for nine months FY26: INR 24.5 crores; full-year CapEx guidance: INR 1,050 million, mainly for new facilities and business growth.

• Net working capital at 68 days due to inventory buildup, targeted to reduce to 50 days by March.

• Exceptional items of ~INR 9 million due to provisions for new labour code.

Outlook and guidance

• FY26 revenue growth expected at 9-10% over FY25, led by Home Appliances, Fans, and Motors, including potential resumption of US exports.

• EBITDA margin forecast for FY26 is 5.3%-5.8%, with higher margins expected from export sales once resumed.

• Bhiwandi/Bhiwadi plant expected operational by May 2026, with revenue potential of INR 550-600 crores at steady state and 20% ROCE.

• Lighting business expected to achieve double-digit growth in FY26-27; fan business projected to grow 50% in FY26-27.

• Targeting net working capital days of 45-50, with improvements from inventory and payables management.