Harsha Engineers International (HARSHA) Q1 25/26 earnings summary

Executive summary

• Positive signs of industrial demand recovery in Europe and India, with Harsha Romania and China showing improved sales and profitability in Q1 FY26.

• India engineering business achieved 5% topline and 6.5% adjusted EBITDA growth in Q1 FY26 over Q4 FY25, with stable performance despite new facility ramp-up costs.

• Board approved unaudited standalone and consolidated financial results for Q1 FY26, with statutory auditors expressing an unmodified opinion.

• Bronze Bushing segment reported Rs. 25 crore sales in Q1 FY26 and secured a new agreement with a multinational customer for Rs. 117 crore annual revenue potential.

• Exports from India are recovering, with early signs of demand revival in Europe and China.

Financial highlights

• Consolidated revenue from operations was ₹36,529 lakhs in Q1 FY26, up from ₹34,316 lakhs year-over-year.

• Consolidated EBITDA for engineering was ₹6,526 lakhs, with an EBITDA margin of 18.1%.

• Consolidated PAT stood at ₹3,793 lakhs, compared to ₹3,605 lakhs in the same quarter last year.

• Solar division posted revenue of ₹1,646 lakhs and EBITDA of ₹90 lakhs in Q1 FY26.

• Basic and diluted EPS for Q1 FY26 was ₹4.17 (consolidated).

Outlook and guidance

• Early signs of export demand revival, especially in Europe and China, are expected to support future growth.

• Expecting low teens top line growth in India engineering and high single-digit consolidated growth for FY26.

• Profitability is projected to improve over FY25 levels.

• Incremental sales from a new long-term bushing contract to start in Q4 FY26, with full realization over 2-3 years.

• Bushing segment revenue expected to double to INR 200 crore+ in 2-3 years.