Elecon Reports Resilient Q1 FY27 Performance, Driven by Gear Division Growth and Strong Order Book Visibility

Elecon Reports Resilient Q1 FY27 Performance, Driven by Gear Division Growth and Strong Order Book Visibility​

Elecon Engineering Company Limited, a major industrial gear solution provider in Asia, announced its unaudited financial results for the quarter ending June 30, 2026. The company reported consolidated revenue of ₹521 crores, achieving an EBITDA margin of 21.0%, reflecting disciplined execution and operational resilience despite global uncertainties.

The consolidated performance metrics stand as follows:

• Consolidated Revenue: ₹ 521 crores
• EBITDA: ₹ 109 crores
• PAT: ₹ 70 crores (yielding a PAT margin of 13.5%)
• Consolidated Order Intake: ₹ 755 crores
• Consolidated Open Order Book: ₹ 1,518 crores as of June 30, 2026

Divisional Highlights for Q1 FY27​

The company's two main divisions, Gear and Material Handling Equipment (MHE), showed distinct performance trends.

The Gear Division reported a strong increase in revenue, which rose 16.3% year-on-year (YoY) to ₹416 crores. The division's EBIT grew 14.7% YoY, maintaining an EBIT margin of 17.9%. Demand across domestic and international markets fueled this performance. Order intake for the Gear Division increased by 18.8% YoY to ₹570 crores, while the open order book expanded by 46.9% YoY to reach ₹1,043 crores, indicating strong revenue visibility.

The MHE Division witnessed a marginal degrowth in revenue of 2.9% on a YoY basis, attributed primarily to temporary softness observed in project execution. Despite this, the division maintained an EBIT margin of 25.6%. Order intake for MHE grew by 38.1% YoY to ₹185 crores, and the open order book increased by 18.8% YoY to ₹475 crores. Furthermore, the MHE division secured a strategic overseas order in the Port industry valued at ₹21 crores during the quarter.

Overseas revenue reached ₹151 crores during the period, contributing 29% of the consolidated revenue and registering robust Y-o-Y growth of 21.9%.

Leadership Commentary and Strategic Outlook​

Commenting on the results, Shri Prayasvin B. Patel, Chairman & Managing Director of Elecon Engineering Company Ltd., noted that Q1 FY27 was a quarter of resilient performance for the company. He highlighted that the consolidated figures, including the ₹109 crore EBITDA and 13.5% PAT margin, reflect disciplined execution.

The Chairman emphasized the continued strong growth trajectory of the Gear Division and confirmed that while global macroeconomic uncertainties persist, early signs of recovery in several international markets are encouraging for the company's expansion plans.

"As India's market leader in Industrial Gear Solutions and Material Handling Equipment," he stated, "Elecon remains well positioned to capitalize on opportunities across domestic and international markets."

Company Profile​

Established in 1951, Elecon Engineering Company Limited is one of the largest manufacturers of Industrial Gears and Material Handling Equipment in Asia. The company maintains a manufacturing facility spanning 3,35,000 Square Meters. With seven decades of experience, it serves over 95 countries through its network of distributors and dealers. Its product solutions are utilized across major sectors including Cement, Sugar, Defense, Steel, Mining, and Power.

ELECON Stock Price Movement​

At 12:12 PM, shares of Elecon Engineering Company Limited are slipping significantly in live trading, shedding 4.17% to trade at ₹491. The stock sees considerable movement as over 1.7 million shares have been traded so far today.