Harsha Engineers International (HARSHA) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 consolidated revenue grew 25.2% year-over-year, driven by strong India engineering and robust demand across segments and geographies.

• India engineering business posted 21% YoY growth, with margin compression due to higher raw material and indirect costs, and forex losses.

• Key product lines such as bushings and stampings saw YoY growth of over 30%.

• Subsidiary Advantek reported 7% sequential revenue growth but a PAT loss of Rs. 4.3 crores; expected to be PAT positive for the full year.

• Unaudited standalone and consolidated financial results for Q1 FY27 were approved and reviewed, with auditors expressing unmodified opinions.

Financial highlights

• Q1 FY27 consolidated revenue from operations was Rs. 45,743 lakhs, up from Rs. 36,529 lakhs in Q1 FY26.

• Q1 FY27 consolidated EBITDA was Rs. 7,261 lakhs (margin 15.9%), down from 18.1% in Q1 FY26.

• Q1 FY27 consolidated PAT was Rs. 3,738 lakhs (margin 8.2%), compared to Rs. 3,793 lakhs (10.4%) in Q1 FY26.

• Solar business revenue was Rs. 3,635 lakhs with positive EBITDA of Rs. 2.82 crore.

• Working capital cycle improved to 115 days from 130 days sequentially; receivable days decreased to 27 from 33.

Outlook and guidance

• Expecting mid to high teens growth in India and low teens consolidated sales growth for FY27.

• EBITDA margin guidance for India engineering is 20%-22%, with potential improvement if raw material prices stabilize.

• Solar EPC segment targets Rs. 20,000 lakhs revenue for FY27 with 7%-8% EBITDA margin.

• Advantek and foreign subsidiaries are expected to improve profitability, with combined net loss targeted to be in lower single digits for FY27.

• China Brownfield expansion project is on track for commissioning in Q3 FY28.