Harsha Engineers International (HARSHA) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 performance was in line with expectations, with strong growth in India and Europe, but Romania underperformed due to commodity price volatility and lower demand.

• India engineering business and subsidiary Harsha Advantek showed robust topline and bottom-line growth, though Advantek reported a PAT-level loss due to higher interest and depreciation from new facilities.

• Overseas subsidiaries: China maintained steady profitability and growth, while Romania faced operating losses from copper price spikes.

• Solar division delivered strong Q3 results, contributing positively to overall business.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved and reviewed without qualification by the audit committee and statutory auditors.

Financial highlights

• Consolidated Q3 FY26 revenue was ₹40,925 lakhs, up from ₹33,894 lakhs YoY; consolidated PAT was ₹3,360 lakhs (8.2% margin), up from ₹2,669 lakhs (7.9%).

• Consolidated engineering segment EBITDA was ₹6,410 lakhs (15.7% margin), up from ₹4,949 lakhs (14.6%) in Q3 FY25.

• India engineering business reported 17.4% YoY revenue growth; normalized EBITDA margin at 23.8%, reported at 21.7%.

• Solar business achieved ₹5,971 lakhs revenue and ₹554 lakhs EBITDA in Q3.

• Working capital cycle improved to 140 days from 146 days in the previous quarter; inventories at 84 days, receivables at 33 days, trade creditors at 33 days.

Outlook and guidance

• FY26 expected to close with over 10% revenue growth and improved margins; Q4 anticipated to maintain or slightly improve run rate.

• Guidance for FY27 will be provided after Q4 FY26 results.

• Advantek expected to reduce losses in Q4 and target break-even next year.

• Brownfield expansion in China planned with $9.94 million investment to be completed by FY28, aiming to double current revenues at full maturity by FY29.

• The company is monitoring the impact of new Indian labour codes and will update future financials as more regulatory clarity emerges.