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Harsha Engineers International (HARSHA) investor relations material
Harsha Engineers International Q3 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 FY26 performance was broadly in line with expectations, with strong growth in India and Europe, but Romania underperformed due to commodity price volatility.
Consolidated revenue in Q3 FY26 grew 20.7% year-over-year to ₹40,925 lakhs, with adjusted EBITDA and PAT up 41.6% and 42.7% year-over-year, respectively, after a one-time labor code provision.
India engineering business posted 17.4% YOY revenue growth and robust top-line and bottom-line performance, though Harsha Advantek reported a PAT-level loss due to higher interest and depreciation from its new facility.
The group includes subsidiaries in China, Romania, and India, and a joint venture in solar energy.
Unaudited standalone and consolidated financial results for Q3 FY26 were approved and reviewed without qualification by the audit committee and statutory auditors.
Financial highlights
Q3 FY26 consolidated revenue was ₹40,925 lakhs, up from ₹33,894 lakhs in Q3 FY25; consolidated EBITDA was ₹6,410 lakhs (15.7% margin), and PAT was ₹3,360 lakhs (8.2% margin).
Solar business achieved revenue of ₹5,971 lakhs and EBITDA of ₹554 lakhs in Q3 FY26.
Working capital cycle improved to 140 days, with inventories at 84 days, receivables at 33 days, and trade creditors at 33 days as of Q3 FY26.
CapEx of ₹3,200 lakhs in Q3 and ₹10,000 lakhs cumulatively for the first three quarters; Advantek CapEx expected to reach ₹25,000+ lakhs by year-end.
Basic and diluted EPS for Q3 FY26 were ₹3.69 (consolidated) and ₹4.58 (standalone).
Outlook and guidance
FY26 is expected to close with a little over 10% overall growth, with Q4 maintaining or slightly improving the current run rate.
Margins are expected to improve in Q4, with a targeted PAT of around ₹14,500 lakhs for FY26.
Brownfield expansion in China planned with $9.94 million investment to be completed by FY28, funded 70-80% by local borrowing and the rest by equity from India.
Guidance for FY27 will be provided after Q4 results.
The company is monitoring the impact of new Indian labour codes and will update future financials as more regulatory clarity emerges.
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Charter amendments seek to modernize governance and establish one share, one vote by 2026.
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