Elecon Engineering Company Ltd
Elecon Engineering Company Ltd Q1 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Q1 FY26 earnings call: what management guided on revenue, margins and order book.
The short version
Elecon Engineering aims for a 25% CAGR growth over the next 3 years, driven primarily by the Gear and MHE divisions. Elecon anticipates steady revenue growth driven by both Gear and MHE divisions, supported by a 25% CAGR over the next 3 years.
From Elecon Engineering Company Ltd's Q1 FY26 earnings-call transcript · updated 23 Aug 2026.
Revenue & Sales Performance
- Elecon Engineering aims for a 25% CAGR growth over the next 3 years, driven primarily by the Gear and MHE divisions.
- Growth focus is on expanding overseas markets in both Gear and MHE segments.
- Domestic demand remains robust, especially from power, steel, and cement sectors, expected to sustain growth momentum in the next couple of years.
- Emerging significant traction in defense sector, particularly with Indian Navy, targeting around INR 200 crores in defense orders starting FY '26.
- Gear division capacity expansion through INR 400 crores capex over 3-4 years expected to generate an additional INR 500 crores in revenue.
- MHE division targeted to generate INR 650 crores revenue in FY '26 with sustainable 23% margin, supported by increasing exports and strong order book.
- Order backlog and consistent inflows provide strong visibility and foundation for sustained growth in coming quarters.
Profitability & Margins
See what Elecon Engineering Company Ltd said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- Elecon Engineering has planned a capital expenditure (capex) of INR 400 crores over the next 3 years (FY '26 to FY '28), primarily focused on the Gear division.
- Additionally, INR 35 crores capex is planned for the Material Handling Equipment (MHE) division in the current year.
- The INR 400 crores capex includes a mix of on-balance sheet investments and operating lease (ROU) assets.
- Recent capex includes machinery acquisitions, with INR 25 crores capitalized in Q2 FY '26.
- The new INR 300 crores capex over 3 years is expected to generate an additional INR 500 crores in revenue.
- Focus areas include gearing up for export markets, high-speed gearboxes, and improving production capacity across sectors.
- The company is selectively investing in brand building and digital platforms, especially in Europe.
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Ranked on what management guided this quarter
Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.
Fundraising & Capital Structure
See what Elecon Engineering Company Ltd said on fundraising & capital structure — free account, 30 seconds.
Order Book & Pipeline
- As of June 30, 2025, the MHE division's open order book stands at INR 400 crores.
- The Gear division reported an order inflow of INR 480 crores in Q1 FY '26.
- A defense order worth nearly INR 200 crores is expected by Q2, executable over 2 years.
- A larger defense order for P-17 Bravo, estimated at INR 1,000+ crores, is expected possibly by Q4 or next year, executable over 3 years.
- Overseas business order inflows for Gears grew by 10% year-on-year, with INR 119 crores in order inflow from international business.
- Recent wins include an INR 80 crores order in the power sector on the Gear side.
- MHE orders, after a slight dip in Q1, are expected to recover with orders secured in July, showing good traction from cement, steel, and power sectors.
Elecon Engineering Company Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹746 Cr, net profit ₹6 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.
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What Elecon Engineering Company Ltd's management said in earlier quarters
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Frequently Asked Questions
What were Elecon Engineering Company Ltd Q1 FY26 results?
Elecon Engineering aims for a 25% CAGR growth over the next 3 years, driven primarily by the Gear and MHE divisions. Elecon anticipates steady revenue growth driven by both Gear and MHE divisions, supported by a 25% CAGR over the next 3 years.
What is Elecon Engineering Company Ltd share price analysis?
Elecon Engineering Company Ltd currently shows a neutral. The stock trades at a P/E of 32.3 with a market cap of ₹9,768 Cr. Investors should review the full earnings analysis for detailed insights.
Is Elecon Engineering Company Ltd planning capital expenditure?
Elecon Engineering has planned a capital expenditure (capex) of INR 400 crores over the next 3 years (FY '26 to FY '28), primarily focused on the Gear division.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.