Harsha Engineers International (HARSHA) Q2 25/26 earnings summary

Executive summary

• Q2 and H1 FY26 delivered strong revenue and profit growth, with consolidated revenue up 7.3% YoY in Q2 and 6.9% in H1, driven by robust export sales, industrial demand revival in Europe, and improved overseas subsidiary performance, especially Romania, which posted 38% YoY top-line growth and positive EBITDA after several challenging quarters.

• India engineering business saw 15% top-line growth QoQ and 10% YoY for H1, with margin pressures from Advantech's ramp-up losses, but overall EBITDA and PAT increased YoY.

• Export sales from India to Europe and other geographies grew significantly, reaching INR 237 crore in H1, up 12% YoY and 27% QoQ.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved and reviewed with an unmodified opinion from auditors.

Financial highlights

• Q2 FY26 consolidated revenue was ₹37,834 lakhs, up from ₹35,258 lakhs in Q2 FY25; H1 FY26 revenue was ₹74,363 lakhs, up from ₹69,574 lakhs YoY.

• Q2 FY26 consolidated EBITDA was ₹6,396 lakhs (16.9% margin); PAT was ₹3,644 lakhs (9.6% margin); H1 FY26 EBITDA and PAT rose 11.2% and 14.4% YoY.

• Standalone revenue for Q2 FY26 was ₹27,876 lakhs, with standalone PAT at ₹3,903 lakhs.

• Solar business revenue was ₹1,522 lakhs in Q2 FY26, with EBITDA of ₹100 lakhs.

• CapEx spend was ₹24 crore in Q2 and ₹68 crore in H1 FY26.

Outlook and guidance

• Consolidated top-line growth for FY26 is expected to be in the higher single digits, with India engineering business projected to grow in the low to mid-teens.

• Profitability is expected to improve significantly in FY26 compared to FY25, with Advantech expected to become profitable within the next year as capacity utilization improves.

• New product development remains strong, with 258 new SKUs in H1 FY26.

• The company is cautiously optimistic about sustaining export and subsidiary improvements, pending further quarters' performance.