Gear Division Revenue
₹472 Cr
-21% YoY
Gear revenue declined due to delayed order inflows and customer deferments, especially in steel sector.
ELECONENGINEERING
Other
22 Apr 2026
Elecon Engineering Company Ltd — Q4 FY26
Elecon Engineering's Q4 FY26 consolidated revenue declined 6.5% YoY to ₹746 crore, dragged by a 21% drop in the Gear division (₹472 crore) due to customer-led deferrals and delayed order inflows amid geopolitical uncertainty.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Elecon Engineering's Q4 FY26 consolidated revenue declined 6.5% YoY to ₹746 crore, dragged by a 21% drop in the Gear division (₹472 crore) due to customer-led deferrals and delayed order inflows amid geopolitical uncertainty. The MHE division outperformed with 37% YoY growth to ₹274 crore, driven by power, cement, and port demand. Consolidated EBITDA margin contracted to 21.2% (from ~24% in Q4 FY25) on operating deleverage and unfavorable mix. Net profit stood at ₹108 crore (excluding ₹10 crore goodwill impairment). Management withdrew FY27 guidance citing limited visibility, though order books remain strong at ₹1,292 crore (Gear ₹894 crore, MHE ₹398 crore). Key risk: sustained execution delays if geopolitical tensions persist, further pressuring margins.
Key Numbers
MHE Division Revenue
₹274 Cr
+37% YoY
MHE continued strong growth driven by power, cement, and port demand.
Consolidated Order Inflow
₹657 Cr
+1.9% YoY
Order inflow grew marginally; MHE inflow was weak at ₹107 Cr but expected to recover in Q1.
Open Order Book
₹1,292 Cr
+37% YoY
Strong order book provides revenue visibility; Gear at ₹894 Cr, MHE at ₹398 Cr.
Key Risks
Geopolitical uncertainty causing execution delays
Customers deferred deliveries and order bookings due to geopolitical tensions, impacting Q4 revenue by ~₹70 crore. Further delays could persist.
high · management_commentaryMargin pressure from product mix and operating deleverage
Gear division margins fell to 19.3% due to lower engineered product mix and inventory buildup. Recovery depends on normalization of execution.
medium · data_observationDefense order delays
Expected Navy orders (P7 Alpha, aircraft carrier) have been deferred to FY28, pushing back potential high-margin revenue.
medium · analyst_questionRaw material and logistics cost inflation
Management noted potential increase in input costs due to geopolitical situation, though they are passing it on in new orders.
low · management_commentaryNotable Quotes
We are holding our guidance for FY27 at this stage and will revisit our outlook once there is a greater clarity and stability in the operating environment.
The largest impact is in the month of March about 77 crores of the orders were in a different buckets... we had almost 70 crores impact for this event in the month of March.
We have a strong order book right but we have shown learning in last two quarters where despite having order books there were delay in the schedules.
Frequently Asked Questions
What was Elecon Engineering's revenue in Q4 FY26?
Elecon Engineering reported revenue of ₹746 Cr in Q4 FY26, representing a -6.5% change compared to the same quarter last year.
What guidance did Elecon Engineering management give for FY27?
Elecon Engineering's management guidance will be added as new verified call summaries are processed.
What are the key risks for Elecon Engineering in FY27?
Key risks include Geopolitical uncertainty causing execution delays — Customers deferred deliveries and order bookings due to geopolitical tensions, impacting Q4 revenue by ~₹70 crore. Further delays could persist.; Margin pressure from product mix and operating deleverage — Gear division margins fell to 19.3% due to lower engineered product mix and inventory buildup. Recovery depends on normalization of execution.; Defense order delays — Expected Navy orders (P7 Alpha, aircraft carrier) have been deferred to FY28, pushing back potential high-margin revenue.; Raw material and logistics cost inflation — Management noted potential increase in input costs due to geopolitical situation, though they are passing it on in new orders..
Did Elecon Engineering meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Elecon Engineering Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.