SYNOPSIS:
Elin Electronics reported strong Q2 FY26 results with revenue up 27 percent QoQ and 24 percent YoY to Rs. 366.4 crore, EBITDA up 80 percent YoY, and PAT rising 115 percent YoY; outlook remains steady.
Shares of an Electronics Manufacturing Services (EMS) company and one of the largest fractional horsepower motor manufacturers in India surged nearly 14 percent on Monday, after reporting Q2 FY26 financial results with a rise in net profit by around 10 percent QoQ and 115 percent YoY.
At 03:18 p.m., shares of Elin Electronics Limited were trading in green at Rs. 206.85 on BSE, up by around 5.4 percent, compared to its previous closing price of Rs. 196.25, with a market cap of Rs. 1,027 crores. The stock has delivered negative returns of more than 9 percent in one year, but has gained nearly 1 percent in the last one month.
What’s the News
Elin Electronics Limited announced the financial results for the second quarter of FY26 on Monday during the market hours, as per the latest regulatory filings with the stock exchanges.
For Q2 FY26, the company posted a consolidated revenue from operations of Rs. 366.4 crores, reflecting a sequential rise of around 27 percent QoQ compared to Rs. 288.8 crores in Q1 FY26, as well as a year-on-year increase of about 24 percent from Rs. 296.4 crores recorded in Q2 FY25.
The strong YoY performance was primarily driven by robust growth in the appliances and fans segment, supported by new product launches, customer additions, and the impact of an earlier Diwali season compared to the previous year.
During the quarter, Elin Electronics delivered a net profit of Rs. 10.3 crores, representing a significant increase of nearly 10 percent QoQ from Rs. 9.4 crores, as well as a significant growth of around 115 percent YoY from Rs. 4.8 crores.
For Q2 FY26, the company reported an EBITDA of Rs. 20.4 crore, compared to Rs. 17.6 crore in Q1 FY26 and Rs. 11.3 crore in Q2 FY25. The EBITDA margin stood at 5.4 percent in Q2 FY26, as against 5.9 percent in the previous quarter and 3.7 percent in the same period last year.
EBITDA showed robust growth of ~80 percent YoY driven by strong revenue growth, higher efficiencies in operations and overall benefit of operating leverage. However, margins were partially impacted by elevated power costs – resulting from higher-than-expected rainfall that caused frequent load shedding, leading to increased diesel consumption and lower solar power generation – and higher air freight expenses incurred to meet heightened customer demand. These factors were one-off in nature during the quarter.
For Q2 FY26, the company reported a total revenue of Rs. 374.5 crore. The EMS segment contributed Rs. 296.6 crore, accounting for 79.2 percent of total revenue, while the Non-EMS segment contributed Rs. 77.9 crore, representing 20.8 percent.
Within the EMS segment, Home Appliances was the largest contributor with Rs. 140.6 crore (37.5 percent), followed by Lighting, Fans & Switches at Rs. 72.4 crore (19.3 percent), FHP Motors at Rs. 73.5 crore (19.6 percent), and Other EMS products at Rs. 10.1 crore (2.7 percent).
In the Non-EMS segment, Precision Components & Others accounted for Rs. 69.2 crore (18.5 percent), while Medical Cartridges contributed Rs. 8.8 crore (2.3 percent), reflecting growing traction in the healthcare vertical.
FY26 Guidance & Outlook
On the revenue front, the company began the year with a growth guidance of around 15 percent, targeting revenue of ~Rs. 1,350 crore for FY26. By the end of H1 FY26, the company had achieved Rs. 670 crore, representing nearly 50 percent of the full-year guidance. However, management noted that a portion of the projected revenue was expected from exports to the USA, which now face potential risk due to uncertainty around the tariff situation. As a result, full-year revenue could be impacted by up to 3 percent.
In terms of profitability, the company started the year with an EBITDA margin guidance of 6-6.5 percent. As of H1 FY26, it achieved a reported margin of 5.7 percent and an adjusted margin of 5.9 percent. The company also highlighted that margins on export sales remain higher than domestic sales, although overall profitability could be marginally impacted, with full-year margins expected to come in between 5.5-6 percent.
On the capex side, the company has earmarked ~Rs. 65 crore for the upcoming Bhiwadi facility, while an additional Rs. 35-40 crore is planned for scaling up the existing business operations.
Elin Electronics Limited operates in a single primary segment in the manufacturing of Electronics Manufacturing Services (EMS). It manufactures end-to-end product solutions for both international and domestic brands of lighting, fans, and home appliances in India, and is one of the largest fractional-horsepower motor manufacturers in India.
The company serve customers under both OEM (manufacture and supply products based on designs developed by customers) and ODM (conceptualise, design and manufacture) business models. It is highly backward integrated with a strong focus on R&D, emerging technologies and cost optimisation across products through value analysis and engineering.
Under EMS Products, the company offers a diversified range that includes LED lighting, fans, and switches, home appliances, fractional horsepower motors, and other EMS-based products, catering to multiple consumer and industrial applications.
In the Components segment, the company manufactures medical diagnostic cartridges and moulded and sheet metal components, which serve as critical parts for various end-use industries, highlighting its strong engineering and manufacturing capabilities across product categories.
Written by Shivani Singh
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