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Harsha Engineers International LtdQ4 FY26 earnings call

All quarters

Summary generated by AI from the official transcript Harsha Engineers International Ltd filed with BSE on 12 May 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 consolidated Engineering segment revenue of INR1,444 crore for FY26 versus INR1,269 crore last year, with adjusted EBITDA of around INR270 crore compared to INR227 crore in the prior year. Management attributed the growth to higher export sales, strong India demand, better product mix and cost control, while Advantek posted a positive EBITDA of INR4 crore but a combined loss due to higher depreciation and interest, and Romania continued to report negative EBITDA. The Solar business achieved revenue of INR183 crore with a PAT of INR10.2 crore for FY26.

2 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.

Numbers mentioned

Engineering segment revenue (consolidated): INR1,444 crore (FY26)

p. 5
the Engineering segment has achieved top line of INR1,444 crore at consolidated level against the INR1,269 crore last year

Maulik Jasani, page 5 of the filed PDF · View the filing

Adjusted EBITDA (Engineering segment): INR270 crore (FY26)

p. 5
our adjusted EBITDA is around INR270 crore if we adjust it for new Labour Code impact, while last year adjusted EBITDA was INR227 crore for our Engineering segment

Maulik Jasani, page 5 of the filed PDF · View the filing

Quarterly Engineering segment revenue: INR382 crore (Q4 FY26)

p. 5
For the quarter ended March '26, our Engineering segment at consolidated level have achieved top line of INR382 crore and EBITDA of INR77 crore in the last quarter

Maulik Jasani, page 5 of the filed PDF · View the filing

Bushings revenue: INR127 crore (FY26)

p. 4
bushings have also reported a revenue of about INR127 crores for the financial year 2026, in line with our expectation, posting about 25% growth over last financial year

Vishal Rangwala, page 4 of the filed PDF · View the filing

Large-size cage sales: INR49 crores (FY26)

p. 4
Our sale of large-size cages grew by almost 14% in FY 2026 and stood at around INR49 crores

Vishal Rangwala, page 4 of the filed PDF · View the filing

Japan-based customer sales: INR73 crores (FY26)

p. 4
Sale to Japan-based customer grew by almost approximately 12% in 2026 and stood at around about INR73 crores

Vishal Rangwala, page 4 of the filed PDF · View the filing

India Engineering business growth: 14% (FY26)

p. 4
Engineering business India has posted a good overall growth of around 14% in FY 2026

Vishal Rangwala, page 4 of the filed PDF · View the filing

Export from India growth: 17% (FY26 vs FY25)

p. 4
in FY 2026, export from India have also posted a good robust growth, almost 17% compared to FY 2025

Vishal Rangwala, page 4 of the filed PDF · View the filing

India Engineering operating EBITDA: 22% (FY26)

p. 4
our India Engineering business has posted an operating EBITDA of around 22% in FY 2026, which is quite satisfactory

Vishal Rangwala, page 4 of the filed PDF · View the filing

China subsidiary topline growth: 9.26% (FY26 vs FY25)

p. 4
China had performed well with an overall top-line growth of about 9.26% in FY '26 over FY '25 and has also posted a positive EBITDA of around 11%

Vishal Rangwala, page 4 of the filed PDF · View the filing

Combined foreign subsidiary losses: INR9 crore (FY26)

p. 5
our combined loss of subsidiary company in the current year is INR9 crore, not INR11 crore which has been said. And previous year it was INR14 crore

Maulik Jasani, page 5 of the filed PDF · View the filing

Harsha China revenue and PAT: INR120 crore revenue, INR5 crore PAT (FY26)

p. 8
Our Harsha China has done turnover of around INR120 crore with a profit of around INR5 crore as a Profit After Tax

Maulik Jasani, page 8 of the filed PDF · View the filing

Harsha Romania revenue and loss: INR247 crore revenue, INR14 crore loss (FY26)

p. 8
Harsha Romania has done turnover of around INR247 crore with a profit after tax around INR14 crore loss

Maulik Jasani, page 8 of the filed PDF · View the filing

Solar business revenue: INR183 crore (FY26)

p. 5
Solar business have achieved revenue of INR183 crore for the full year with a PAT of rupees INR10.2 crore for the financial year '25-'26 against the adjusted PAT of INR5 crore last year

Maulik Jasani, page 5 of the filed PDF · View the filing

Working capital cycle: 130 days (year-end FY26)

p. 5
Our overall working capital cycle at consolidated level remain around 130 days at the year-end against the 134 days in the previous quarter and 127 days in the previous year

Maulik Jasani, page 5 of the filed PDF · View the filing

Capex: INR120 crore (FY26)

p. 5
We have incurred capex of INR120 crore in the full year and around INR20 crore in the last quarter at a consolidated level

Maulik Jasani, page 5 of the filed PDF · View the filing

Stampings revenue: INR60 crore (FY26)

p. 16
Stamping absolute value. Around INR60 crore

Maulik Jasani, page 16 of the filed PDF · View the filing

Consolidated quarterly revenue growth: 27% (Q4 FY26)

p. 6
27% growth which you have observed is a consolidated growth

Vishal Rangwala, page 6 of the filed PDF · View the filing

Engineering business quarterly growth (ex-Solar): 15.7% (Q4 FY26)

p. 6
if I remove the Solar business, it is 15.7%

Vishal Rangwala, page 6 of the filed PDF · View the filing

Advantek Q4 sales contribution: INR28 crore (Q4 FY26)

p. 6
INR28 crore is the Q4 contribution of sales coming from Advantek

Sanjay Majmudar, page 6 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.

Overall top-line growth — double-digit growth · FY 2026-2027

stated as an aspiration by Vishal Rangwala

p. 5
I feel confident that the current financial year FY 2026-2027, we should achieve an overall double-digit growth in top line, though the growth in India engineering would be little bit more aggressive, somewhat in mid-teens

Vishal Rangwala, page 5 of the filed PDF · View the filing

EBITDA margin — current margin profile · FY27

stated as an aspiration by Vishal Rangwala

p. 5
We are also feeling confident that we should be able to at least maintain our current margin profile through our endeavour

Vishal Rangwala, page 5 of the filed PDF · View the filing

Bushings segment growth — 25% to 30% · current year

stated as an aspiration by Vishal Rangwala

p. 4
In the current year also, we are having a very aggressive growth plan in tune of 25% to 30% in this segment

Vishal Rangwala, page 4 of the filed PDF · View the filing

Advantek sales growth — at least 3x · FY27

stated as an aspiration by Vishal Rangwala

p. 4
we should see the sale from this unit growing at least 3x in FY '27

Vishal Rangwala, page 4 of the filed PDF · View the filing

China steel cage expansion project completion — H2 FY28

stated firmly by Vishal Rangwala

p. 4
This project should come in operation in H2 FY '28, and we should also see some improvement in EBITDA in China going forward

Vishal Rangwala, page 4 of the filed PDF · View the filing

Romania cage mix — more than 30%-35%

stated as an aspiration by Vishal Rangwala

p. 4
we are trying our best to improve our product mix by focusing more on cages in Romania from current level of around 22% to more than 30%-35%

Vishal Rangwala, page 4 of the filed PDF · View the filing

China expansion capex — INR70 crore this year, INR20 crore next year · FY27 and FY28

stated firmly by Vishal Rangwala

p. 7
about INR70 crore capex is expected to be executed in current financial year and further INR20 crore we are expecting next financial year

Vishal Rangwala, page 7 of the filed PDF · View the filing

India Engineering business growth — higher-teen or mid-teen to higher-teen · FY27

stated as an aspiration by Maulik Jasani

p. 11
We expect India to continue to grow in a higher-teen or mid-teen to higher-teen, and that will be contributed by both India growth, as well as our export growth will continue

Maulik Jasani, page 11 of the filed PDF · View the filing

Stamping and bushing business growth — 15% to 20% · mid-term

stated as an aspiration by Vishal Rangwala

p. 13
We are expecting from a mid-term basis at least 15% to 20% growth in these two segments, we are expecting because we are investing in new capacity, additional product portfolio even in these two product lines

Vishal Rangwala, page 13 of the filed PDF · View the filing

India engineering growth (normalized) — minimum 15% · year-over-year

stated as an aspiration by Maulik Jasani

p. 13
we should continuously see at least at the India engineering level a minimum 15% growth year-over-year in a normalized situation

Maulik Jasani, page 13 of the filed PDF · View the filing

Consolidated EBITDA margin — increase of 100 to 200 basis points · 2 to 3 years

stated as an aspiration by Maulik Jasani

p. 15
over the period of 2 to 3 years, our expectation is overall increase of 100 to 200 basis points in our EBITDA

Maulik Jasani, page 15 of the filed PDF · View the filing

Stampings revenue growth — at least 20% · next year

stated as an aspiration by Vishal Rangwala

p. 16
It will grow better

Vishal Rangwala, page 16 of the filed PDF · View the filing

Solar business growth — more than 25% · going forward

stated as an aspiration by Maulik Jasani

p. 18
we expect it to grow more than 25% also going forward

Maulik Jasani, page 18 of the filed PDF · View the filing

Solar EBITDA margin — last year reported EBITDA margin

stated as an aspiration by Maulik Jasani

p. 18
We expect solar to maintain the last year reported EBITDA margin, maybe marginal improvement over there

Maulik Jasani, page 18 of the filed PDF · View the filing

Advantek turnover potential — INR250 crores to INR300 crores · next two years

stated conditionally by Maulik Jasani

p. 12
with the current install capacity, we expect it can give us around INR250 crores to INR300 crores turnover

Maulik Jasani, page 12 of the filed PDF · View the filing

India level revenue potential at peak utilization — INR2,400 crore to INR2,500 crore

stated conditionally by Maulik Jasani

p. 15
considering the capability and followed by our maintenance capex, we expect the current set of business can easily reach us at India level around INR2,400 crore to INR2,500 crore

Maulik Jasani, page 15 of the filed PDF · View the filing

Consolidated revenue potential at peak utilization — INR2,700 crore to 3,000 crore

stated conditionally by Maulik Jasani

p. 15
console level can be around INR2,700 crore to 3,000 crore, depend on what kind of capacity we look into

Maulik Jasani, page 15 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.

Growth was mainly driven by volume, with Solar contributing the majority of the consolidated growth; commodity cost pass-through happens automatically per customer lead periods, averaging about four months.

Answered by Vishal Rangwala

Asked by Vaibhav Shah: What drove the 27% revenue growth this quarter - pricing or volume - and was commodity inflation fully passed through?

p. 6
Majority is driven by volume growth considering that the last quarter, which is September to December, if you observe, there has not been a significant material movement

Vishal Rangwala, page 6 of the filed PDF · View the filing

Management said European demand has been slowly and continuously improving, though profitability from a cost and pricing standpoint remains a concern.

Answered by Vishal Rangwala

Asked by Jason Soans: What is the demand situation in Europe currently versus a few quarters ago?

p. 8
last whole year, we are seeing demand has slowly improved over the year. And specifically for the European subsidiary also, the demand is continuing to improve

Vishal Rangwala, page 8 of the filed PDF · View the filing

Management expects Advantek losses to reduce as utilization improves, China to remain positive, and Romania losses to reduce further, though exact quantification was not given.

Answered by Maulik Jasani

Asked by Jason Soans: Are losses at Advantek, China and Romania expected to reduce going into FY27-28?

p. 9
Gradually this will reduce because the utilization will increase in this year. We expect it to be more positive trend this year at an Advantech level

Maulik Jasani, page 9 of the filed PDF · View the filing

Management declined to give a precise breakdown but confirmed all three factors contributed.

Answered by Maulik Jasani

Asked by Jaymin: Can you break down full-year export growth into recovery, wallet share gains, and new commercialization?

p. 11
It's a mix of both. It's a mix of both. All three items are there, you are right, but we cannot give further breakdown to it

Maulik Jasani, page 11 of the filed PDF · View the filing

Management expects Advantek to reach peak utilization on current installed capacity in about two years, contributing INR250-300 crore turnover, with further expansion planned.

Answered by Maulik Jasani

Asked by Jay Shah: What is the timeline and revenue potential for Advantek ramp-up?

p. 12
we expect it to reach to the peak in next two years, the current install capacity

Maulik Jasani, page 12 of the filed PDF · View the filing

Management confirmed some consolidation among competitors has occurred and is supporting their efforts to increase wallet share, though they could not name specific companies.

Answered by Management

Asked by Jay Shah: Has consolidation in Europe helped Harsha gain wallet share?

p. 14
there is some consolidation and that is also driving our endeavour to, you know, increase our wallet share

Management, page 14 of the filed PDF · View the filing

Management estimated India-level revenue potential of INR2,400-2,500 crore and consolidated potential of INR2,700-3,000 crore depending on capacity utilized.

Answered by Maulik Jasani

Asked by Saket Kapoor: What revenue can current capex and plant capacity support at peak utilization?

p. 15
we expect the current set of business can easily reach us at India level around INR2,400 crore to INR2,500 crore

Maulik Jasani, page 15 of the filed PDF · View the filing

Management expects Solar to maintain last year's EBITDA margin with only marginal improvement, rather than a further step-up.

Answered by Maulik Jasani

Asked by Hiten Boricha: Will Solar EBITDA margin improve further given the operating leverage seen in FY26?

p. 18
We expect solar to maintain the last year reported EBITDA margin, maybe marginal improvement over there

Maulik Jasani, page 18 of the filed PDF · View the filing

Risks flagged

Global turmoil that could disrupt business rhythm

p. 3
in spite of a current global turmoil which we are witnessing and which could have upset the rhythm of doing business, particularly in quarter four of the current financial

Vishal Rangwala, page 3 of the filed PDF · View the filing

Romania subsidiary continuing to post negative EBITDA

p. 4
Romania continues to perform below par as it is still having negative EBITDA, resulting into a combined foreign subsidiary losses of about INR11 crores in the current financial or FY '26

Vishal Rangwala, page 4 of the filed PDF · View the filing

Advantek losses from higher depreciation and interest

p. 4
Advantek, through having posted a positive EBITDA of INR4 crores, has still reported a combined loss of INR11.4 crores due to higher depreciation and interest

Vishal Rangwala, page 4 of the filed PDF · View the filing

Massive inflationary pressure in Europe

p. 16
We are continuing to face massive inflationary pressure in Europe, which is also adding to this whole challenge

Vishal Rangwala, page 16 of the filed PDF · View the filing

Uncertainty over demand improvement in Europe reaching needed levels

p. 17
I don't have a very clear direction or, like, an input from our customer on that demand improving to the level needed immediately

Vishal Rangwala, page 17 of the filed PDF · View the filing

Cost impact from input materials such as oils and plastic cage material

p. 17
we are seeing the impact across the board on the input side of the, you know, specifically when we use some of the oils, lubrication things in the in our production, that all cost has a cost impact

Vishal Rangwala, page 17 of the filed PDF · View the filing

Potential short-term impact from geopolitical conflict and petroleum prices on domestic bearing manufacturer demand

p. 9
There could be impact of, you know, current war and petroleum prices and all that. That could have some impact from a short-term point of view, we don't know that yet

Vishal Rangwala, page 9 of the filed PDF · View the filing

Wind market in Europe yet to pick up, affecting Romania plant

p. 14
In general, as yet wind has not picked up in Europe, which we are, one of the factor of, the plant in Romania facility is quite focused on was quite focused on wind as a primary market

Vishal Rangwala, 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.