Elecon Engineering Company (505700) Q3 25/26 earnings summary

Executive summary

• Consolidated Q3 FY26 revenue grew 4.3% year-over-year to ₹552 crores, with the Gear Division contributing 78% and MHE Division 22%.

• The company is a leading Asian manufacturer of industrial gears and material handling equipment, celebrating 75 years with a global footprint and strong domestic leadership.

• MHE Division delivered strong 16% year-over-year revenue growth, driven by robust demand from power, cement, mining, and port sectors.

• Management remains optimistic about future growth, supported by a strong order book and healthy inquiry pipeline.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended 31st December 2025 were approved, showing continued growth in revenue and profitability year-over-year.

Financial highlights

• Q3FY26 consolidated revenue was ₹552 crore, up 4.3% YoY; EBITDA at ₹109 crore (19.8% margin), PAT at ₹72 crore (13.0% margin).

• 9MFY26 revenue reached ₹1,620 crore (+13.4% YoY), EBITDA ₹340 crore (21.0% margin), PAT ₹228 crore (14.1% margin).

• Order intake for Q3FY26 was ₹701 crore (+4% YoY); open order book at Dec 31, 2025, stood at ₹1,372 crore (+24.2% YoY).

• One-time arbitration income of ₹25 crore in revenue and ₹80 crore exceptional income from investment reclassification recognized.

• Interim dividend of ₹0.50 per share declared and paid in November 2025.

Outlook and guidance

• FY26 revenue expected to be up to 5% lower and adjusted EBITDA margin up to 2% lower than earlier guidance due to near-term softness.

• Management confident of improvement beyond near term, citing strong order book and execution pipeline.

• Export revenue targeted to reach 50% of total by FY30, with 20-25% growth expected in overseas markets over the next three years.

• Segment guidance: MHE revenue around ₹700 crore, balance from Gear Division.