Harsha Engineers International (HARSHA) Q3 25/26 earnings summary

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.

• India engineering business posted 17.4% YoY revenue growth and robust topline and bottom-line growth, though Advantek reported a PAT-level loss due to higher interest and depreciation from its new facility.

• Overseas subsidiaries: China maintained steady profitability and growth, while Romania faced operating losses from copper price increases and lag in cost pass-through; foreign subsidiaries posted a combined net loss of ₹398 lakhs in Q3 FY26.

• Solar division delivered strong Q3 results, contributing positively to overall business.

• 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 YoY; consolidated PAT was ₹3,360 lakhs (8.2% margin), up from ₹2,669 lakhs (7.9%) YoY.

• Consolidated engineering segment EBITDA was ₹5,860 lakhs (reported), adjusted for one-time provision, and solar business achieved ₹5,971 lakhs revenue and ₹554 lakhs EBITDA in Q3.

• India engineering business reported 17.4% YoY revenue growth in Q3.

• Working capital cycle improved to 140 days from 146 days sequentially; inventories at 84 days, receivables at 33 days, trade creditors at 33 days.

• Basic and diluted EPS for Q3 FY26 were ₹3.69 (consolidated) and ₹4.58 (standalone).

Outlook and guidance

• FY26 expected to close with a little over 10% overall growth, with Q4 maintaining or slightly improving the run rate.

• Margins are expected to improve in Q4, with Advantek losses reducing and a better bottom line for FY26 compared to FY25.

• Guidance for FY27 will be provided after Q4 FY26 results.

• Sales to Japanese customers are expected to improve in coming quarters.

• The company is monitoring the impact of new Indian labour codes and will update future financials as more regulatory clarity emerges.