Harsha Engineers International (HARSHA) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue from operations rose 16.3% YoY; EBITDA margin improved to 18.6% from 16.9%, and PAT increased to ₹45.03 crore from ₹36.44 crore.

• H1 FY27 consolidated revenue grew 20.7% YoY, supported by India engineering growth and strong demand across key product lines.

• Management reaffirmed FY27 consolidated sales growth guidance of 10%-12%, with India engineering growth in the mid-to-high teens.

Financial highlights

• Q2 FY27 revenue from operations was ₹440.09 crore, versus ₹378.34 crore YoY and ₹457.43 crore QoQ.

• Consolidated EBITDA was ₹81.85 crore, versus ₹63.96 crore YoY; PAT was ₹45.03 crore, versus ₹36.44 crore.

• Engineering & Others revenue was ₹428.17 crore, versus ₹363.12 crore YoY; India revenue was ₹329.97 crore, versus ₹265.94 crore.

• Solar revenue was ₹11.92 crore and EBITDA ₹0.73 crore in Q2; solar revenue declined from ₹15.22 crore YoY.

• Other income was ₹6.96 crore, including ₹3.86 crore interest income and ₹2.78 crore gain on fair value of FVTPL investments.

Outlook and guidance

• FY27 sales growth guidance remains 10%-12% consolidated and mid-to-high teens for India engineering; guidance is full-year based and reflects a typically softer Q3.

• Global volume growth target is 12%-15%; metal price movements and pass-through may affect reported value growth.

• Advantek revenue is expected at ₹140 crore or higher in FY27; H2 is expected to be profit-positive, though full-year results may retain a minor loss.

• Solar revenue guidance remains ₹150 crore-₹200 crore, subject to government import and subsidy norms.

• India engineering EBITDA margin is expected near 22%; consolidated engineering margin guidance is 17%-18%, subject to metal prices and other conditions.