During Friday’s trading session, shares of one of the largest Industrial Gear solution providers in Asia, along with Material Handling Equipment, surged nearly 5 percent on BSE, after announcing Q1 FY26 financial results with a rise in net profit by around 20 percent QoQ and 139 percent YoY.
With a market cap of Rs. 13,960 crores, shares of Elecon Engineering Company Limited hit an intraday high at Rs. 682.9 on BSE, up by nearly 5 percent, as against its previous closing price of Rs. 649.55. The stock has delivered negative returns of over 3 percent in one year, and has fallen by around 9 percent in the last one month.
What’s the News
According to the latest regulatory filings on the stock exchanges, Elecon Engineering Company Limited announced the financial results for Q1 FY26 on Friday during market hours.
For Q1 FY26, Elecon Engineering reported a consolidated revenue from operations of Rs. 491 crores, reflecting a significant growth of around 25 percent YoY from Rs. 392 crores in Q1 FY25, but a quarter-on-quarter decline of about 38 percent from Rs. 798 crores in Q4 FY25.
Net profit stood at Rs. 175.4 crores in Q1 FY26, marking a nearly 20 percent QoQ growth from Rs. 146.5 crores reported in the previous quarter, and an impressive annual increase of around 139 percent from Rs. 73.4 crores in Q1 FY25.
EBITDA for the quarter stood at Rs. 130 crore, with an EBITDA margin of 26.6 percent. According to management, the EBITDA margin was impacted due to accelerated depreciation charges related to assets capitalised in Q4 FY25. However, the company expects margins to recover as production capacities scale up and revenue contribution from recent capex investments begins to materialise.
Elecon Engineering operates through two key business segments. The Transmission Equipment segment remained the primary revenue driver, contributing Rs. 357 crore in Q1 FY26, accounting for 72 percent of total revenue and reflecting a year-on-year growth of about 6 percent.
The company’s Material Handling Equipment segment generated Rs. 138.3 crore during the quarter, contributing 28 percent to overall revenue and recording a YoY increase of around 137 percent.
As of 30th June, Elecon Engineering’s consolidated order book stood at Rs. 1,110 crores, reflecting around 17 percent YoY growth compared to Rs. 947 crores as of June 2024. Additionally, order intake for Q1 FY26 came in at Rs. 614 crore, registering a growth of around 13 percent over Rs. 545 crore recorded in Q1 FY25.
Looking ahead, Elecon has set a strategic target of deriving 50 percent of its consolidated revenue from international markets by FY30. As per the company’s shareholding pattern of June 2025, the ace investor Vijay Kishanlal Kedia holds a 1 percent stake in Elecon Engineering.
Elecon Engineering Company Limited is involved in the design and manufacturing of Industrial Gears and Material Handling Equipment, along with providing erection and commissioning solutions for its products. It has manufacturing operations based out of India, Sweden, the UK, USA and Netherlands, with sales offices at Dubai and Singapore.
Written by Shivani Singh
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