Harsha Engineers International Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Harsha Engineers International Ltd filed with BSE on 17 Aug 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
Harsha Engineers reported 25% consolidated year-over-year growth in Q1 FY27, driven by a 21% top-line increase in the India Engineering business, while margins declined quarter-over-quarter due to raw material cost increases, a foreign exchange accounting loss, and higher indirect material costs. Management said Bushing, Stamping and large-size Cage segments grew strongly, and export sales from India rose 22% year-over-year. The Romania subsidiary continued to report operating losses while China remained profitable, and management discussed capacity expansion plans in India and China.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Consolidated growth: 25% (Q1 FY27 YoY)
p. 3
“As you would have seen on a consolidated basis, we have posted a 25% growth in Quarter 1 and year-over-year”
Vishal Rangwala, page 3 of the filed PDF · View the filing
India Engineering business growth: 21% (Q1 FY27 YoY)
p. 3
“This growth is largely due to a consistent, strong, top-line growth of around 21% posted by our India Engineering business, which comprises of company HEIL and our wholly own subsidiary company, Harsha Advantek.”
Vishal Rangwala, page 3 of the filed PDF · View the filing
Export from India: Rs. 139 crores (Q1 FY27)
p. 4
“Our export from India in Quarter 1 FY27 stood at Rs. 139 crores.”
Vishal Rangwala, page 4 of the filed PDF · View the filing
Bushing sales: Rs. 34 crores (Q1 FY27)
p. 4
“First and foremost, sales of Bushing in Quarter 1 stood at around Rs. 34 crores reflecting almost 35% growth year-over-year basis.”
Vishal Rangwala, page 4 of the filed PDF · View the filing
Stamping sales: Rs. 90 crores (Q1 FY27)
p. 4
“Equally encouraging is the Stamping sales, which stood at around Rs. 90 crores in Quarter 1.”
Vishal Rangwala, page 4 of the filed PDF · View the filing
Large-size Cages sales: Rs. 10 crores (Q1 FY27)
p. 4
“We are also witnessing a strong demand offtake in the segment of large-size Cages. So, Quarter 1 sales appear to be lower at around Rs. 10 crores.”
Vishal Rangwala, page 4 of the filed PDF · View the filing
Japanese customer sales: Rs. 21 crores (Q1 FY27)
p. 5
“Our Quarter 1 FY27 sales stood at around Rs. 21 crores, showing about 25% year-over-year growth.”
Vishal Rangwala, page 5 of the filed PDF · View the filing
Harsha Advantek sales: Rs. 30 crores (Q1 FY27)
p. 5
“Although Quarter 1 sales at around 30 crores appears to show only a modest growth of 7% on QoQ basis, we have a good visibility of sales increase progressively coming through every quarter.”
Vishal Rangwala, page 5 of the filed PDF · View the filing
Foreign exchange loss: Rs. 4 crores (Q1 FY27)
p. 3
“Another factor which has impacted the margin of India Engineering business is foreign exchange loss of around Rs. 4 crores, which is due to certain technical accounting reasons.”
Vishal Rangwala, page 3 of the filed PDF · View the filing
Consolidated Engineering supply: Rs. 421 crores (Q1 FY27)
p. 6
“For the quarter ended June 26th, our Engineering business at consolidated level has achieved a supply of Rs. 421 crores against Rs. 382 crores in the immediate previous quarter and Rs. 349 crores in the same quarter last year.”
Maulik Jasani, page 6 of the filed PDF · View the filing
Consolidated EBITDA (Engineering): Rs. 69.8 crores (Q1 FY27)
p. 6
“We have achieved consolidated EBITDA for Engineering business of Rs. 69.8 crores in the current quarter against Rs. 77 crores in the immediate previous quarter and Rs. 65.3 crores in the last year same quarter.”
Maulik Jasani, page 6 of the filed PDF · View the filing
Solar business revenue: Rs. 36.3 crores (Q1 FY27)
p. 6
“In solar business, we have achieved revenue of Rs. 36.3 crores and positive EBITDA of Rs. 2.82 crores for the current quarter.”
Maulik Jasani, page 6 of the filed PDF · View the filing
Working capital cycle: 116 days (Q1 FY27)
p. 6
“Overall working capital cycle at consolidated level is around 116 days against 130 days in the previous quarter.”
Maulik Jasani, page 6 of the filed PDF · View the filing
Consolidated CapEx: Rs. 37 crores (Q1 FY27)
p. 6
“The company has incurred a CapEx of Rs. 37 crores in Quarter 1 at consolidated level.”
Maulik Jasani, page 6 of the filed PDF · View the filing
Advantek EBITDA margin: 9% (Q1 FY27)
p. 12
“Currently, last quarter, obviously, because of the major impact we already discussed on the material part and another, it has a 9% EBITDA.”
Maulik Jasani, page 12 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.
Bushing sales growth — around 30% · FY27
stated conditionally by Vishal Rangwala
p. 4
“We have strong visibility on this order and have good pipeline. So, fairly confident of achieving targeted sales growth of Bushing around 30% this year against last year's Rs. 127 crores.”
Vishal Rangwala, page 4 of the filed PDF · View the filing
Stamping sales growth — about 30% · FY27
stated conditionally by Vishal Rangwala
p. 4
“which gives us confidence that we could achieve about 30% growth this year as well in the Stamping against the sales of Rs. 60 crores last year.”
Vishal Rangwala, page 4 of the filed PDF · View the filing
Large-size Cages growth — 50% · FY27
stated conditionally by Vishal Rangwala
p. 4
“We believe that order book on hand and pipeline in this segment basis of this, we should achieve a good 50% growth in spite of 1st Quarter numbers and financial year.”
Vishal Rangwala, page 4 of the filed PDF · View the filing
Japanese customer sales growth — 10%, Rs. 72 crores · FY27
stated conditionally by Vishal Rangwala
p. 5
“However, the full-year basis, we expect only a modest 10% growth in sales of Rs. 72 crores in this segment, given the fact that the entire process of development and conversion is quite slow, but it is reassuringly positive.”
Vishal Rangwala, page 5 of the filed PDF · View the filing
Harsha Advantek annual sales target — Rs. 140 crores plus · FY27
stated as an aspiration by Vishal Rangwala
p. 5
“Annual sales target in Advantek should be in the region of about Rs. 140 crores plus.”
Vishal Rangwala, page 5 of the filed PDF · View the filing
Advantek profitability — PAT positive · end of FY27
stated conditionally by Vishal Rangwala
p. 5
“So, as the scale of operations goes up, we expect Advantek to be PAT positive by the end of FY27.”
Vishal Rangwala, page 5 of the filed PDF · View the filing
Harsha China sales growth — around 10% · FY27
stated conditionally by Vishal Rangwala
p. 5
“We believe that Harsha China should report an overall growth of around 10% in current financial as against the sales of about Rs. 120 crores achieved in FY26, with an EBITDA margin in the range of 12%-14% and a decent PAT range of around 6%.”
Vishal Rangwala, page 5 of the filed PDF · View the filing
China Brownfield expansion commissioning — commissioned by Quarter 3 · next financial year
stated firmly by Vishal Rangwala
p. 5
“This project should be commissioned by Quarter 3 of next financial year and we should see a full impact from FY2029 onwards.”
Vishal Rangwala, page 5 of the filed PDF · View the filing
Combined foreign subsidiary losses — much lower single-digit figures · current financial year
stated as an aspiration by Vishal Rangwala
p. 6
“However, the combined loss between the two foreign subsidiaries should reduce to much lower single-digit figures if not become fully positive.”
Vishal Rangwala, page 6 of the filed PDF · View the filing
India sales growth — higher-teens · FY27
stated firmly by Vishal Rangwala
p. 6
“I will end my presentation with the reaffirmation that we are confident of continuing to grow strongly in India in the range of higher-teens and also achieving a consolidated sales growth of low-to-medium teens and we expect the bottom line to grow more strongly because of the combined impact of all the positive factors we have noted about.”
Vishal Rangwala, page 6 of the filed PDF · View the filing
Overall FY27 growth — low-teen · FY27
stated firmly by Vishal Rangwala
p. 7
“I think 20% is a very tough stretch. We definitely expect mid-to high-teen numbers in India and then low-teen for FY27 overall is our general expectation.”
Vishal Rangwala, page 7 of the filed PDF · View the filing
CapEx guidance — Rs. 50 crores to Rs. 80 crores · FY27
stated conditionally by Maulik Jasani
p. 10
“But we at least expect in the range of Rs. 50 crores to Rs. 80 crores as a year-over-year CapEx but we will give a better guidelines in the coming quarters.”
Maulik Jasani, page 10 of the filed PDF · View the filing
Combined CapEx (Bhayla + China Phase-2) — Rs. 180 crores to Rs. 200 crores · 1.5 to 2 years
stated firmly by Maulik Jasani
p. 11
“And we expect, and also in China Phase-2, put together, we expect both the major expansion and our regular CapEx would be in the range of around Rs. 180 crores to Rs. 200 crores in 1.5 years to 2 years.”
Maulik Jasani, page 11 of the filed PDF · View the filing
India Engineering EBITDA margin — 20-22%
stated as an aspiration by Vishal Rangwala
p. 12
“In general, we expect the margin in the range of 20-22%. Yes, as a normal sustainable margin.”
Vishal Rangwala, page 12 of the filed PDF · View the filing
Solar EPC revenue — Rs. 200-odd crores · FY27
stated conditionally by Vishal Rangwala
p. 13
“And on the revenue side, again, we are looking at Rs. 200-odd crores revenue in this segment.”
Vishal Rangwala, page 13 of the filed PDF · View the filing
Solar EPC EBITDA margin — 7%-8% · FY27
stated conditionally by Vishal Rangwala
p. 13
“And a margin sustenance on similar about, I believe, 7%-8% EBITDA.”
Vishal Rangwala, page 13 of the filed PDF · View the filing
India Engineering EBITDA margin — 18.7% · FY27
stated conditionally by Maulik Jasani
p. 15
“If we expect that metal price will be settled down or remain stable, then we expect even the EBITDA margin to be improved and to match the last year’s EBITDA margin percentage, which was 18.7%.”
Maulik Jasani, page 15 of the filed PDF · View the filing
Bhayla combined phases revenue — Rs. 300 crores to Rs. 400 crores · third year
stated as an aspiration by Vishal Rangwala
p. 18
“But in the past, we have shared that Bhayla, we are expecting that it should give revenue by the third year, roughly about Rs. 300 crores to Rs. 400 crores.”
Vishal Rangwala, page 18 of the filed PDF · View the filing
Subsidiary revenue growth (China + Romania combined) — less than 10% · FY27
stated conditionally by Sanjay Majmudar
p. 17
“So, I will clarify here. Romania, China together will be less than 10%. Harsha, India will be more than 15%. So, on an average, between 12% to 15%.”
Sanjay Majmudar, page 17 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 20% is a stretch, expecting mid-to-high teen growth in India and low-teen consolidated growth.
Answered by Vishal Rangwala
Asked by Varun Jain: What is the FY27 overall growth outlook and is 20% achievable?
p. 7
“I think 20% is a very tough stretch. We definitely expect mid-to high-teen numbers in India and then low-teen for FY27 overall is our general expectation.”
Vishal Rangwala, page 7 of the filed PDF · View the filing
Management attributed the margin drop to raw material price increases and FX accounting impacts from Romanian borrowings.
Answered by Vishal Rangwala
Asked by Varun Jain: Why did foreign business EBITDA margins fall despite 20% revenue growth?
p. 7
“So, we are working to do that. Increasing additional cage revenue. At the same time, there was a big impact of raw material prices continuing to increase and actually negating some of the improving situation on the revenue side.”
Vishal Rangwala, page 7 of the filed PDF · View the filing
Management said combined losses could be Rs 2-4 crores versus Rs 10 crores last year, with limited progress so far on shifting toward Cages.
Answered by Sanjay Majmudar
Asked by Amit Anwani: What loss level is expected for Romania and is the shift from castings to cages progressing?
p. 8
“And we have said that the lower single digit may be Rs. 2-3-4 crores in that range combined losses could be there as against Rs. 10 crores we did last year.”
Sanjay Majmudar, page 8 of the filed PDF · View the filing
Management said both projects are on track, with building construction underway, and gave a broad CapEx range.
Answered by Maulik Jasani
Asked by Vaibhav Shah: What is the CapEx progress and guidance for China Brownfield and HAL Phase-2?
p. 10
“We will keep on adding further guidelines. As of now, our focus is to complete these two major expansions. But we at least expect in the range of Rs. 50 crores to Rs. 80 crores as a year-over-year CapEx but we will give a better guidelines in the coming quarters.”
Maulik Jasani, page 10 of the filed PDF · View the filing
Management said the focus is on volume growth, with some pricing pass-through impact still uncertain.
Answered by Vishal Rangwala
Asked by Manish Goyal: How much of the India Engineering guidance is driven by volume versus price increases?
p. 10
“It accounts for it in a little bit way, but we are actually trying to focus on a volume growth. And right now, we are not trying to predict the value impact, but there could be some impact of that as you rightly mentioned because of this.”
Vishal Rangwala, page 10 of the filed PDF · View the filing
Management said the 24% figure was elevated due to timing lags and that 20-22% is the normal sustainable range.
Answered by Vishal Rangwala
Asked by Uttam Purohit: What EBITDA margin did the standalone Engineering business achieve and can it improve further?
p. 12
“I think that 24 is a little high number and we have shared over past also that because of the lag cycle, some quarters it may appear to be higher and some quarters may appear to be too low.”
Vishal Rangwala, page 12 of the filed PDF · View the filing
Management explained Japan's growth is structurally slower due to lengthy project discussions but remains positive.
Answered by Sanjay Majmudar
Asked by Varun Jain: Why is Japan-based customer growth guided at only 10% for FY27 despite 25% growth this quarter?
p. 13
“See, Japan, they are very slow. Lot of projects are under discussion. But we really don't want to because all other three fronts are growing very aggressively. Japan is a laggard in terms of growth, but it is still growth and it will continue to be positive.”
Sanjay Majmudar, page 13 of the filed PDF · View the filing
Management described a strategy shift toward Cages in Romania and stable China profitability, expecting a small combined loss this year.
Answered by Sanjay Majmudar
Asked by Saket Kapoor: What is the path to profitability for Romania and China, and what EBITDA margin is expected for the year?
p. 15
“So, what we have guided is that the combined loss at the end of the year, assuming that Romania will gradually taper, it could be maybe in the range of maybe 2-3 crores, let us see.”
Sanjay Majmudar, page 15 of the filed PDF · View the filing
Management confirmed absolute EBITDA will grow but the percentage margin will be diluted by pass-through pricing and Bhayla ramp-up costs.
Answered by Maulik Jasani
Asked by Jason Soans: Is the India Engineering margin guidance of 22-24% lower due to volatile raw material prices?
p. 16
“We expect the margin to remain similar, but there is a metal price increase, which will reduce the percentage.”
Maulik Jasani, page 16 of the filed PDF · View the filing
Management agreed this could hold particularly this year given reduced Advantek losses, but limited the commitment to the current year.
Answered by Sanjay Majmudar
Asked by Resham Jain: Will EBITDA growth outpace revenue growth and PAT growth outpace EBITDA growth over the next few years?
p. 18
“I think you are right. At least for this year, it will be very-very remarkable because quarter-over-quarter Advantek losses will dramatically reduce.”
Sanjay Majmudar, page 18 of the filed PDF · View the filing
Risks flagged
Raw material cost increases with a lag before pass-through can be realized
p. 3
“In Quarter 1 of this year, our average raw material costs have gone up by around 8%. As you are aware, we follow a pass-through mechanism in most of our systems. However, there will be a lag of one or two quarters.”
Vishal Rangwala, page 3 of the filed PDF · View the filing
Foreign exchange loss from cash flow hedge accounting
p. 3
“The FX losses of around Rs. 4 crores is due to this accounting effect of realization of cash flow hedges lost in the current quarter.”
Vishal Rangwala, page 3 of the filed PDF · View the filing
Inflationary pressure on indirect material costs due to geopolitical conflict
p. 4
“As you are aware, the war broke out during the 1st Quarter and we all saw that. So, this has increased our cost in Quarter 1 by approximately Rs. 3 crores.”
Vishal Rangwala, page 4 of the filed PDF · View the filing
Ongoing operating losses at Harsha Romania
p. 5
“Lastly, talking about our aberration which I hinted earlier, Harsha Romania continues to be in negative territory.”
Vishal Rangwala, page 5 of the filed PDF · View the filing
One-time foreign exchange loss in Romania from currency movement
p. 5
“Though it has reported a slight growth in top line, however, Quarter 1 FY27 there was a one-time foreign exchange loss of around Rs. 2 crores because of the adverse currency movement between the local currency and Europe.”
Vishal Rangwala, page 5 of the filed PDF · View the filing
Large-size Cages capacity struggling to ramp up at the new facility
p. 9
“So, in the large size Quarter 1 was aberration, partially driven by the large size capacity at our new facility, still struggling to ramp up and respond to the demand.”
Vishal Rangwala, page 9 of the filed PDF · View the filing
High overheads and dependency on a key customer for semi-finished castings hindering Romania breakeven
p. 15
“Till the problem is fixed, overheads are high, and unless the key customer who is buying semi-finished castings reaches the previous level, breakeven becomes difficult.”
Sanjay Majmudar, page 15 of the filed PDF · View the filing
Uncertainty over normalization of raw material prices amid West Asia crisis
p. 17
“No idea. As of now, no idea, we expect it to be settled down soon.”
Maulik Jasani, page 17 of the filed PDF · View the filing
Civil construction delays due to heavy rain
p. 10
“Civil construction is on hold because of heavy rain. Because Ahmedabad, which has very, very heavy rain, where it's difficult to do construction.”
Sanjay Majmudar, page 10 of the filed PDF · View the filing
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