Current/ Expected Orderbook/ Pending Orders?

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

Any current/future new fundraising through debt or equity?

No explicit mention of any new fundraising through debt or equity in the provided transcript. The company currently maintains a strong net cash position of around INR 550 crores, giving significant financial flexibility. Capex plans for FY '26 to FY '28 amount to INR 400 crores, to be funded through a mix of owned assets and operating leases (ROU assets), not necessarily new borrowings. The company utilizes operating leases for machinery acquisitions rather than traditional borrowing, spreading principal and finance cost over time. Borrowings have increased compared to the previous year, refle

Any current/future capex/capital investment/strategic investment?

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 includ

Future growth expectations in sales/revenue/volumes?

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

Future growth expectations in earnings/operating earnings/profits/EPS?

Elecon anticipates steady revenue growth driven by both Gear and MHE divisions, supported by a 25% CAGR over the next 3 years. Gear division margins expected to normalize to 24-25% EBIT by year-end, supported by improved product mix favoring engineered products (50%+). MHE division targets sustainable EBITDA margin of 23% over next 2-3 years with revenue guidance of INR 650 crores for FY26. Strong domestic demand from power, steel, cement sectors and rising defense sector traction, especially with expected INR 200 crore defense order in FY26. Overseas market expansion is a key growth driver fo

IN US

Sale is live|00:00:00left today

Elecon Engineering Company LtdQ2 FY25Electrical Equipment

Elecon Engineering Company Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹522P/E: 31.8Market Cap: ₹11.4K CrSector: Electrical Equipment

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→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.

Margin guidance

Category 3

→Elecon anticipates steady revenue growth driven by both Gear and MHE divisions, supported by a 25% CAGR over the next 3 years.
→Gear division margins expected to normalize to 24-25% EBIT by year-end, supported by improved product mix favoring engineered products (50%+).
→MHE division targets sustainable EBITDA margin of 23% over next 2-3 years with revenue guidance of INR 650 crores for FY26.
→Strong domestic demand from power, steel, cement sectors and rising defense sector traction, especially with expected INR 200 crore defense order in FY26.
→Overseas market expansion is a key growth driver for both divisions, focusing on OEM business and exports.
→Capital expenditure of INR 400 crores planned over 3 years primarily in Gear division to support capacity ramp-up and technological advancements.
→Cost discipline, brand-building and digital initiatives anticipated to improve operational efficiency and profit margins long-term.

3 more insights locked — sign up free to unlock

Fundraise plans

→No explicit mention of any new fundraising through debt or equity in the provided transcript.
→The company currently maintains a strong net cash position of around INR 550 crores, giving significant financial flexibility.
→Capex plans for FY '26 to FY '28 amount to INR 400 crores, to be funded through a mix of owned assets and operating leases (ROU assets), not necessarily new borrowings.
→The company utilizes operating leases for machinery acquisitions rather than traditional borrowing, spreading principal and finance cost over time.
→Borrowings have increased compared to the previous year, reflected in higher borrowing cost, but no indication of fresh equity or debt issuance.
→Overall focus appears to be on disciplined capital allocation and cost management with existing capital and lease arrangements.

Order book

Yes

→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.

Capex plans

Yes

→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.

How does Elecon Engineering Company Ltd rank vs peers in Electrical Equipment?

Pro feature

1Elecon Engineering Company Ltd

Rev 2Mar 3

See full Electrical Equipment sector rankings

Want more stocks like Elecon Engineering Company Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio