Elecon Engineering Company Limited (ELECON)

Capital Goods · Electrical Equipment · NSE · Updated 15 July 2026

₹478 ↓ 23.44% (1Y)

🎯 Key Takeaways

Elecon Engineering is transitioning from a mature phase into a growth-oriented trajectory, supported by a strengthening order book and improving profitability trends. Management is emphasizing execution discipline in high-margin segments like Gear Division while addressing near-term challenges in MHE.
Revenue grew 4.1% QoQ to ₹529 in Q3FY25.
⚠️ Execution risks in the MHE Division, which saw a 2.9% revenue decline in Q1 FY27, could pressure overall growth if not addressed.

Market Cap

₹10,880

P/E Ratio

29.2

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Elecon Engineering is transitioning from a mature phase into a growth-oriented trajectory, supported by a strengthening order book and improving profitability trends. Management is emphasizing execution discipline in high-margin segments like Gear Division while addressing near-term challenges in MHE. The company maintains a conservative capital allocation approach with regular dividend payouts and incremental governance enhancements.

📰 What's Happening

In Q1 FY27, Elecon reported a 11.9% YoY revenue increase to ₹521 crores, driven by 16.3% growth in the Gear Division, while MHE Division declined 2.9%. Order intake reached ₹755 crores with an open order book of ₹1,518 crores, signaling sustained demand. The 66th AGM on June 25, 2026, approved FY2025-26 audited financials, declared a final dividend of Rs 1.50 per share, and reappointed directors including Chairman Prayasvin Patel. On June 22, 2026, the board appointed Pranav C. Amin as an additional independent director to strengthen governance oversight, pending shareholder ratification. The trading window for insiders closed on June 30, 2026, ahead of Q1 FY27 results approval on July 10, 2026.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	425	414	485	474	565	392	508	529
Operating Profit	101	108	131	130	148	107	124	158
OPM %	21.9%	24.1%	24.5%	25.4%	24.0%	23.5%	22.1%	27.0%
Net Profit	68	73	89	90	104	73	88	108
EPS	₹6.06	₹6.50	₹7.89	₹8.06	₹9.24	₹6.54	₹3.91	₹4.79

Revenue growth has accelerated in recent quarters, with Q1 FY27 revenue at ₹521 crores up from ₹392 crores in Q1 FY24, reflecting improving demand momentum. While OPM has fluctuated between 21.9% and 27.0%, the latest quarter showed 13.5% PAT margin, indicating margin recovery. However, the sequential decline in EPS from ₹9.24 in Q4FY24 to ₹4.79 in Q3FY25 suggests earnings volatility, likely due to timing of order execution and cost structure. The company's profitability is stabilizing after earlier expansion phases, with management citing sustainable growth as a strategic priority.

🔮 Management Outlook & What's Next

Management expressed cautious optimism for FY2026-27, citing a robust order book and focus on sustainable growth during the AGM. While no formal revenue or margin guidance was provided, the emphasis on execution in Gear Division and order book visibility suggests confidence in near-term delivery. The company continues to prioritize capital discipline, with no announced buybacks or large-scale capex plans beyond routine investments.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Electrical Equipment

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Hitachi Energy India Limited	1.45 L Cr	172.4	—	—	—
Bharat Heavy Electricals Limited	1.39 L Cr	267.3	—	—	—
ABB India Limited	1.35 L Cr	48.8	—	—	—
CG Power and Industrial Solutions Limited	1.32 L Cr	136.7	—	—	—
Siemens Limited	1.28 L Cr	45.2	—	—	—
GE Vernova T&D India Limited	1.11 L Cr	104.1	—	—	—
Siemens Energy India Limited	1.10 L Cr	83.9	—	—	—
Waaree Energies Limited	86,928	22.4	—	—	—
Suzlon Energy Limited	73,843	64.1	—	—	—
Thermax Limited	53,625	81.9	—	—	—

🔗 Peer Stock Analyses

POWERINDIA BHEL ABB CGPOWER SIEMENS

⚠️ Risk Factors

1. Execution risks in the MHE Division, which saw a 2.9% revenue decline in Q1 FY27, could pressure overall growth if not addressed. 2. Margin volatility observed in prior quarters may persist if cost pressures from raw materials or operations are not managed. 3. Governance changes, including the pending ratification of the new independent director, are subject to shareholder approval and may face delays or opposition. 4. High P/E of 29.2 relative to sector peers may limit upside if earnings growth does not accelerate in line with valuation expectations.

📋 Recent Filings

🧠 Analyst's Read

Elecon Engineering shows signs of operational recovery with improving order intake and revenue momentum, but near-term execution in underperforming segments remains critical. Investors should monitor MHE Division performance and clarity on FY27 margin trajectory during the upcoming earnings call on July 13, 2026.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-15.

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