Ahmedabad, January 9, 2026: Shares of Elecon Engineering Company Limited fell sharply in early trade on Friday, reacting to the company’s December quarter earnings that showed margin pressure and a decline in profitability despite steady revenue growth.
The stock was trading at ₹449.55, down ₹53.80 or 10.69%, as of 10:00 AM IST, compared with the previous close of ₹503.35. The intraday low touched ₹435, while the session high stood at ₹457.80, reflecting heavy selling pressure following the earnings announcement.
Q3 FY26 Financial Performance Snapshot
For the quarter ended December 31, 2025, Elecon reported consolidated revenue of ₹552 crore, marking a 4.3% year-on-year increase. However, operating profitability weakened during the period.EBITDA declined to ₹109 crore from ₹143 crore a year earlier, while EBITDA margin narrowed sharply to 19.8% from 27.0% in the corresponding quarter last year. Profit after tax stood at ₹72 crore, down from ₹108 crore in Q3 FY25, resulting in a PAT margin of 13.0%.
The contraction in margins and profitability appears to have weighed on investor sentiment despite top-line growth.
Nine-Month Performance Remains Resilient
On a nine-month basis, consolidated revenue rose to ₹1,620 crore, up 13.4% year-on-year. Adjusted EBITDA for the period stood at ₹340 crore, while adjusted profit after tax came in at ₹228 crore, reflecting moderation when compared with the previous year’s performance.Management indicated that while near-term softness persists, the company continues to see strength in its order book and inquiry pipeline, supporting medium-term visibility .
Segment-Wise Trends
The Gear division reported Q3 revenue of ₹429 crore, a marginal 1.3% YoY increase, impacted by delayed order inflows and execution during the first half of the financial year. EBIT for the segment declined to ₹78 crore, with margins compressing to 18.2%.The Material Handling Equipment (MHE) division continued to outperform, posting revenue of ₹123 crore, up 16.3% YoY. However, EBIT margin moderated to 20.2% from 30.9% last year, primarily due to an unfavourable product mix.
About the Company
Elecon Engineering Company Limited, established in 1951, is one of Asia’s largest manufacturers of industrial gears and material handling equipment. The company serves customers across more than 95 countries, with applications spanning cement, mining, steel, power, sugar, and defence sectors.Source:
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