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View Promises →Elecon Engineering Company Limited — Q3 FY26
Elecon Engineering reported a mixed Q3 FY26 with consolidated revenue of ₹552 crore (+4.3% YoY), driven by strong MHE division growth of 16% YoY, while the gear division remained flat (+1.3% YoY) due to customer-driven dispatch deferrals.
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Elecon Engineering reported a mixed Q3 FY26 with consolidated revenue of ₹552 crore (+4.3% YoY), driven by strong MHE division growth of 16% YoY, while the gear division remained flat (+1.3% YoY) due to customer-driven dispatch deferrals. EBITDA fell to ₹109 crore (margin 19.8%, down 760 bps YoY) impacted by lower gear volumes, higher employee costs, and product mix. PAT stood at ₹72 crore (13% margin). Order intake was robust at ₹701 crore (+7% YoY), with combined order book of ₹1,372 crore providing visibility. Management revised FY26 guidance: revenue may be ~5% lower and EBITDA margins ~2% lower than earlier expectations. Key risks include sustained execution delays in gear division and geopolitical headwinds affecting export growth. The MHE division's strong pipeline and power sector capex cycle offer offsetting optimism.
एल्कॉन इंजीनियरिंग ने तीसरी तिमाही में मिला-जुला प्रदर्शन दिखाया। कुल कमाई ₹552 करोड़ रही, जो पिछले साल से 4.3% ज़्यादा है। इसकी वजह MHE डिवीज़न (भारी सामान उठाने वाली मशीनें) में 16% की बढ़ोतरी थी। गियर डिवीज़न सिर्फ 1.3% बढ़ा क्योंकि ग्राहकों ने डिलीवरी टाल दी। मुनाफा ₹109 करोड़ रहा, लेकिन मार्जिन (कमाई पर मुनाफे का अनुपात) घटकर 19.8% हो गया। कुल मुनाफा ₹72 करोड़ रहा। नए ऑर्डर ₹701 करोड़ मिले, जो पिछले साल से 7% ज़्यादा हैं। कंपनी के पास कुल ₹1,372 करोड़ के ऑर्डर हैं। प्रबंधन ने कहा कि इस साल कमाई पहले के अनुमान से 5% और मार्जिन 2% कम हो सकती है। मुख्य जोखिम गियर डिवीज़न में देरी और निर्यात पर भू-राजनीतिक असर हैं। हालांकि, MHE डिवीज़न और बिजली क्षेत्र में निवेश से उम्मीदें बनी हैं।
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Execution delays in gear division persist
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Order Intake (Consolidated)
₹701 crore
+7% YoY
Consolidated order intake for Q3 FY26, driven by strong MHE orders.
Order Book (Gear Division)
₹811 crore
+39% YoY
Open order book for gear division as of Dec 2025, providing revenue visibility.
Order Book (MHE Division)
₹561 crore
+203% YoY
Open order book for MHE division, reflecting strong growth prospects.
Export OEM Revenue (9M FY26)
₹31 crore
N/A
Revenue from 18 tied-up OEMs in export markets during 9 months.
What Changed vs Last Quarter
NEW
FY26 revenue may be ~5% lower than earlier guidance
Consolidated revenue for FY26 is expected to be lower by up to approximately 5% compared to previous guidance due to near-term softness.
NEW
FY26 adjusted EBITDA margins may be ~2% lower than earlier guidance
Adjusted EBITDA margins for FY26 are expected to be lower by up to approximately 2% compared to earlier guidance.
UPDATED
Capex outlay of ₹400 crore for FY26-28
The company has planned a capex outlay of ₹400 crore over FY26 to FY28 aligned with long-term strategic priorities.
UPDATED
Export revenue target of 50% in long term
Management reiterated the aspiration to achieve 50% of revenue from exports over the long term, though near-term geopolitical factors may delay.
DROPPED
FY26 revenue guidance of ₹2,650 crore
Management expects consolidated revenue of ₹2,650 crore for FY26, implying H2 revenue of ~₹1,500 crore.
DROPPED
FY26 EBITDA margin guidance of 24%
Management expects EBITDA margin to normalize to 24% for FY26, driven by volume ramp-up and operating leverage.
NEW RISK
Execution delays in gear division persist
Customer-driven dispatch deferrals and timing issues have led to flat gear revenue; similar risks could impact Q4 conversion.
NEW RISK
Geopolitical headwinds affecting export growth
Analyst raised concerns about muted export growth despite efforts; management cited geopolitical situations as beyond control.
NEW RISK
Competitive pricing in domestic market may limit market share gains
Management indicated a preference for maintaining margins over aggressive market share expansion, potentially capping growth.
RISK GONE
Geopolitical delays in international markets
Execution delays in overseas markets due to geopolitical volatility may persist, impacting revenue recognition.
RISK GONE
Defense order delays
Large defense orders (P17 Bravo, aircraft carrier) have been delayed; management expects finalization only by Q3-Q4 FY26 or later.
RISK GONE
Subsidiary revenue decline
H1 subsidiary revenue fell to ₹162 crore from ₹188 crore YoY, with margins dropping from 15% to 12%.
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Guidance and risk preview
Consolidated revenue for FY26 is expected to be lower by up to approximately 5% compared to previous guidance due to near-term softness.
Customer-driven dispatch deferrals and timing issues have led to flat gear revenue; similar risks could impact Q4 conversion.
View Risks →