Harsha Engineers International (HARSHA) Q4 24/25 earnings summary

Executive summary

• Navigated a turbulent macro environment with geopolitical tensions and economic uncertainty, while India's GDP growth is expected to exceed 6%.

• Achieved consolidated revenue growth of 10% in Q4 over Q3, with strong adjusted EBITDA and PAT gains.

• India engineering business delivered robust performance, offsetting one-off provisions for Romania impairment and solar division bad debt.

• Bronze Bushing segment sales more than doubled year-over-year, exceeding targets.

• Board approved audited financial results for FY25, with a final dividend of Re.1 per share recommended.

Financial highlights

• Q4 FY25 consolidated revenue: ₹33,032 lakhs; full year: ₹1,40,765 lakhs; Q4 consolidated engineering segment revenue: INR 330 crore.

• Q4 consolidated adjusted EBITDA: ₹6,603 lakhs; full year: ₹22,683 lakhs; Q4 adjusted PAT: ₹3,983 lakhs; full year: ₹12,743 lakhs.

• Standalone revenue for FY25: Rs. 1,08,930 lakhs; standalone PAT: Rs. (6,696) lakhs (net loss due to exceptional items).

• Solar business FY25 revenue: INR 139 crore; EBITDA loss: INR 14 crore after INR 20 crore bad debt write-off and INR 5 crore ECL provision.

• Working capital cycle improved to 126 days (from 144 days previous quarter and 142 days YoY); inventories at 29 days, receivables at 78 days, trade creditors at 38 days as of FY25.

Outlook and guidance

• India engineering business expected to grow in low teens on a consolidated basis in FY26, with top line projected to grow at least high single digits and stronger bottom line growth.

• Bronze bushing business expected to grow at least 30% in FY26, aided by new greenfield capacity.

• Sales to Japan and large bearing cages expected to gain traction in FY26.

• Solar division expects healthy top-line growth, supported by strong order book and favorable market conditions.

• First phase of Bhayla Greenfield Facility to be commissioned soon; FY26 capex targeted at ₹165 crores.