Elecon Engineering Company Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Elecon Engineering Company Ltd filed with BSE on 22 Apr 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Elecon Engineering reported Q4 FY26 consolidated revenue of INR746 crores, down from INR798 crores a year earlier, with the Gear Division revenue falling 21% year-on-year while the MHE Division grew 37%. Management attributed the Gear Division decline to delayed order inflows, extended dispatch timelines and customer-led deferment of deliveries linked to geopolitical uncertainty. Full year FY26 adjusted consolidated revenue was INR2,341 crores versus INR2,227 crores in FY25, and the company recognized a one-time goodwill impairment of INR102 crores as an exceptional item.
Numbers mentioned
Consolidated revenue: INR746 crores (Q4 FY26)
p. 5
“our consolidated revenue from operations stood at INR746 crores compared to INR798 crores in the corresponding quarter of the last year, reflecting a moderate year-on-year contraction.”
Chintan Shah, page 5 of the filed PDF · View the filing
Gear Division revenue: INR472 crores (Q4 FY26)
p. 5
“Revenue for the quarter stood at INR472 crores compared to INR597 crores in Q4 FY25.”
Chintan Shah, page 5 of the filed PDF · View the filing
MHE Division revenue: INR274 crores (Q4 FY26)
p. 6
“Revenue for the quarter increased to INR274 crores from INR200 crores in Q4 FY '25, reflecting a robust growth of 36.8% year-on-year.”
Chintan Shah, page 6 of the filed PDF · View the filing
Consolidated EBITDA margin: 21.2% (Q4 FY26)
p. 5
“Consolidated EBITDA for the quarter stood at INR158 crores, with a margin of 21.2%.”
Chintan Shah, page 5 of the filed PDF · View the filing
Net profit: INR108 crores (Q4 FY26)
p. 5
“Net profit for the quarter came in at INR108 crores, translating into a PAT margin of 14.5%.”
Chintan Shah, page 5 of the filed PDF · View the filing
FY26 adjusted consolidated revenue: INR2,341 crores (FY26)
p. 5
“For the full year FY26, adjusted consolidated revenue stood at INR2,341 crores compared to INR2,227 crores in FY25.”
Chintan Shah, page 5 of the filed PDF · View the filing
FY26 adjusted EBITDA margin: 21.3% (FY26)
p. 5
“Adjusted EBITDA for FY26 stood at INR498 crores, with margins of 21.3%, remaining broadly stable despite near-term execution volatility.”
Chintan Shah, page 5 of the filed PDF · View the filing
Reported PAT: INR341 crores (FY26)
p. 5
“Including all exceptional and one-time items, reported PAT for FY26 stood at INR341 crores.”
Chintan Shah, page 5 of the filed PDF · View the filing
Gear Division EBIT margin: 19.3% (Q4 FY26)
p. 5
“EBIT for the division stood at INR91 crores versus INR147 crores in the same period last year, with margins”
Chintan Shah, page 5 of the filed PDF · View the filing
Gear Division open order book: INR894 crores (as of March 31, 2026)
p. 6
“the open order book that we have is about INR894 crores as of March 31, 2026.”
Chintan Shah, page 6 of the filed PDF · View the filing
MHE Division order book: INR398 crores (as of March 31, 2026)
p. 6
“the order book closed at INR398 crores as of March 31, 2026, which again provides a strong foundation for continued growth.”
Chintan Shah, page 6 of the filed PDF · View the filing
Net cash balance: approximately INR700 crores
p. 6
“we continue to maintain a strong financial position, with a net cash balance of approximately INR700 crores.”
Chintan Shah, page 6 of the filed PDF · View the filing
Final dividend: INR1.50 per share (FY26)
p. 6
“The Board has recommended a final dividend of INR1.50 that is INR1.5 per equity share having a face value of INR1 each, which is subject to shareholders' approval.”
Chintan Shah, page 6 of the filed PDF · View the filing
Consolidated order inflows: INR657 crores (Q4 FY26)
p. 5
“consolidated order inflows stood at INR657 crores, registering a year-on-year growth of about 1.9%.”
Chintan Shah, page 5 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
FY27 guidance — FY27
stated conditionally by Chintan Shah
p. 6
“we are holding our guidance for FY '27 at this stage and will revisit our outlook once there is greater clarity and stability in the operating environment.”
Chintan Shah, page 6 of the filed PDF · View the filing
Growth vs FY26 — FY27
stated as an aspiration by Aayush Shah
p. 14
“No, we are not expecting any degrowth to happen compared to FY26. We are expecting growth.”
Aayush Shah, page 14 of the filed PDF · View the filing
EBITDA margin — FY27
stated conditionally by Aayush Shah
p. 14
“From FY26 we will be able to definitely maintain or grow it. We are expecting growth, but the geopolitical situation will control it a little bit.”
Aayush Shah, page 14 of the filed PDF · View the filing
Gear Division EBITDA margin — close to 22% to 24%
stated conditionally by Aayush Shah
p. 13
“if all the domestic orders go smoothly and what demand we are expecting comes in, you are right, we will be able to go back to the EBITDA levels that we had suggested even earlier, which is close to 22% to 24%.”
Aayush Shah, page 13 of the filed PDF · View the filing
Capex plan — INR400 crores · FY26 to FY28
stated firmly by Chintan Shah
p. 7
“We have a capex plan, as we just last quarter of these INR400 crores between FY26 to FY28.”
Chintan Shah, page 7 of the filed PDF · View the filing
MHE Division growth trajectory — next two to three years
stated as an aspiration by Kaushik Patel
p. 16
“whatever growth trajectory we have shown in the last two, three years, we can definitely continue with the same pace and growth percentage.”
Kaushik Patel, page 16 of the filed PDF · View the filing
Indian Navy order — Q4 FY27
stated as an aspiration by Dipak Dalwadi
p. 8
“So, for this financial year, Q4, we are expecting a very good order from the Indian Navy and that is a big order at this moment.”
Dipak Dalwadi, page 8 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the mix may change but long-term margins are not expected to be affected.
Answered by Aayush Shah
Asked by Animesh Jain: Will the Gear-to-MHE revenue mix shift affect EBITDA margin?
p. 7
“We still do expect further growth in the Material Handling Division going forward while the Gear Division also grows.”
Aayush Shah, page 7 of the filed PDF · View the filing
Management said it was a timing issue with orders deferred to Q1, some of which have already been received in April.
Answered by Kaushik Patel
Asked by Animesh Jain: What caused MHE order inflow to hit a 10-quarter low?
p. 7
“It is a timing difference. In fact, we were expecting certain opportunities to be converted into orders, but it has been deferred for Q1.”
Kaushik Patel, page 7 of the filed PDF · View the filing
Management explained that large cash/investment balances depress ROCE and that capex investment over the next two years should improve results.
Answered by Chintan Shah
Asked by Balasubramanian: How much capex was spent in FY26 and how is ROCE expected to recover?
p. 7
“We have roughly spent about INR95 crores towards different-different categories.”
Chintan Shah, page 7 of the filed PDF · View the filing
Management stated utilization is around 56-60% following capex additions.
Answered by Dipak Dalwadi
Asked by Balasubramanian: What is current capacity utilization?
p. 8
“we are at this moment with the addition of capex is around 56% to 60% utilization is there.”
Dipak Dalwadi, page 8 of the filed PDF · View the filing
Management said customers deferred delivery, particularly in steel, and order booking was delayed due to geopolitical uncertainty.
Answered by Aayush Shah
Asked by Raj Shah: Why did domestic gear revenue fall 27%?
p. 9
“customers asked us to defer the delivery, specifically in the steel sector, a little bit more.”
Aayush Shah, page 9 of the filed PDF · View the filing
Management confirmed a 50% US tariff remains and that the Mexico subsidiary aims to serve Latin America outside that tariff regime.
Answered by Management
Asked by Raj Shah: What is the current tariff situation for exports to USA and Mexico plans?
p. 9
“right now in the USA, we have the 50% tariff.”
Management, page 9 of the filed PDF · View the filing
Management explained the goodwill related to a 2010-11 European acquisition that had been fully integrated, with tax deduction claimed over time in the UK entity.
Answered by Chintan Shah
Asked by Kashyap Javeri: What is the goodwill impairment about and was there a tax benefit?
p. 11
“This goodwill represented the goodwill that we acquired way back in 2010-11 when Elecon did the acquisition of Benzlers and Radicon Group in the European region.”
Chintan Shah, page 11 of the filed PDF · View the filing
Management detailed specific order amounts affected in March, totaling about INR70 crores impact, and noted guidance had already been lowered in January.
Answered by Chintan Shah
Asked by Kashyap Javeri: Did the geopolitical event in late February really impact a full quarter?
p. 11
“About INR77 crores of the orders were in a different bucket, like a couple of orders of INR12 crores, which were ready for dispatch, but it was on hold by the customer.”
Chintan Shah, page 11 of the filed PDF · View the filing
Management attributed most of the increase to sales in February and March not yet due, with a smaller portion overdue.
Answered by Chintan Shah
Asked by Kashyap Javeri: Why did receivables increase from INR610 crores to INR720 crores?
p. 12
“From INR90 crores, INR70 crores to INR75 crores is largely because of the sale which has happened in the February and in the March, which has not due even as on 31st March.”
Chintan Shah, page 12 of the filed PDF · View the filing
Management said catalogue orders exceeded engineered product orders this year due to customer delays, but engineered orders in hand may be executed next year.
Answered by Management
Asked by Pratik Kothari: Why aren't margins guided back to earlier engineered-product levels?
p. 13
“catalogue product orders we received much more than the engineered product.”
Management, page 13 of the filed PDF · View the filing
Management said no.
Answered by Aayush Shah
Asked by Aman Soni: Is there any order visibility from the nuclear sector?
p. 13
“No, we don't.”
Aayush Shah, page 13 of the filed PDF · View the filing
Management said the aircraft carrier RFP release and Navy order timing have been pushed to Q4 FY27, and P-17 Alpha may come around Q3 FY28.
Answered by Dipak Dalwadi
Asked by Aman Soni: What is the status of the aircraft carrier and P-17 Alpha defense orders?
p. 14
“P-17 Alpha also they have deferred, but it may come in the financial year of '28, around Q3.”
Dipak Dalwadi, page 14 of the filed PDF · View the filing
Management gave open order figures and said MHE inquiry pipeline exceeds INR1,000 crores.
Answered by Kaushik Patel
Asked by Ashwani Sharma: Can you quantify the inquiry pipeline for Gear and MHE?
p. 15
“it is more than INR1,000 crores inquiry we have right now for various sectors.”
Kaushik Patel, page 15 of the filed PDF · View the filing
Management explained that engineered product orders could not be dispatched/invoiced due to customer deferment, so associated margins were not reflected in financials, with inventory holding embedded margin.
Answered by Management
Asked by Manish Goyal: Why have Gear Division margins fallen despite a higher engineered product mix?
p. 18
“the margins are not reflecting in our financials. Despite because we have some inventory of the engineered products so it will and we have not invoiced during the quarter and during the year.”
Management, page 18 of the filed PDF · View the filing
Risks flagged
Delayed order inflows and customer-led deferment of deliveries amid macroeconomic and geopolitical uncertainty impacting Gear Division revenue
p. 4
“This was primarily due to delayed order inflows, extended dispatch timelines and customer-led deferment of delivery amid ongoing macroeconomic and geopolitical uncertainties.”
Aayush Shah, page 4 of the filed PDF · View the filing
Potential supply chain issues in the Middle East affecting the UAE overseas entity due to the Strait of Hormuz situation
p. 15
“So, our overseas entity, which is in UAE, that one will be affected.”
Aayush Shah, page 15 of the filed PDF · View the filing
Uncertainty over geopolitical situation limiting near-term visibility on guidance
p. 6
“Given the continued macroeconomic uncertainty and limited near-term visibility, we believe it is prudent to adopt a cautious approach.”
Chintan Shah, page 6 of the filed PDF · View the filing
Anticipated increase in raw material and logistics costs due to geopolitical situation
p. 14
“What we are anticipating there is going to be an increase in some raw material costs or logistic costs.”
Aayush Shah, page 14 of the filed PDF · View the filing
Deferment of defense orders such as P-17 Alpha and aircraft carrier related orders
p. 14
“It is a little bit deferred from the defense.”
Dipak Dalwadi, page 14 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.