Elecon Engineering / Q2-FY26

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Positive2025-10-30Back to ELECONENGINEERING

Revenue

₹578 Cr

verified against source

Revenue YoY

14%

reported change

EBITDA

₹126 Cr

latest reported figure

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EBITDA (₹ Cr)PositiveWatchNegative
2 actual records
Actual quarterly EBITDA (₹ Cr) trajectoryReported values plotted by quarter. Hover or focus a point for its quarter, value, and source sentiment.Q2 FY26: 126 · Positive source sentiment · 2025-10-30Q2 FY26Q3 FY26: 109 · Watch source sentiment · 2026-02-10Q3 FY26126109
Values are taken from the available verified source records; sentiment color is a separate source-read indicator.

Quarter read

What the record says.

Elecon Engineering reported a resilient Q2 FY26 with consolidated revenue of ₹578 crore, up 14% YoY, driven by strong domestic demand across both gear and MHE divisions. EBITDA stood at ₹126 crore with a margin of 21.7%, down 20bps YoY due to higher employee costs and product mix shift in gears. The gear division grew 9% YoY, while MHE surged 33% YoY. Order intake was robust at ₹688 crore, up 28% YoY, providing strong visibility. Management reiterated full-year guidance of ₹2,650 crore revenue and 24% EBITDA margin, expecting H2 acceleration from capacity ramp-up and international execution. Risks include further geopolitical delays in overseas markets and margin pressure from mix changes.

Colored figures show movement against the previous available record.

Guidance to track

  • Management expects consolidated revenue of ₹2,650 crore for FY26, implying H2 revenue of ~₹1,500 crore.
  • Management expects EBITDA margin to normalize to 24% for FY26, driven by volume ramp-up and operating leverage.
  • Capex budget of ₹400 crore over three years for capacity enhancement, quality improvement, and productivity.
  • Strategic goal to increase export share to 50% of total revenue by FY30, focusing on new geographies.

Risks flagged

  • Execution delays in overseas markets due to geopolitical volatility may persist, impacting revenue recognition.
  • Gear division margins declined due to higher employee costs and mix shift towards engineered products; recovery depends on volume ramp-up.
  • Large defense orders (P17 Bravo, aircraft carrier) have been delayed; management expects finalization only by Q3-Q4 FY26 or later.
  • H1 subsidiary revenue fell to ₹162 crore from ₹188 crore YoY, with margins dropping from 15% to 12%.

Key quotes

  • We are confident of achieving our annual guidance of achieving consolidated revenue of rupees 2650 crores and EITA margin of 24% in FI26.
  • The domestic market has taken some time in the beginning to take traction. However, there have been no incidences in the local market where they have asked us to delay the execution.
  • Our export margins have always been better than the domestic margins.

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