Elecon Engineering Company Ltd (ELECON)
🎯 Key Takeaways
- Elecon Engineering is in a strategic transition phase, shifting focus from its traditional MHE (Material Handling Equipment) segment toward higher-margin Gear and export-driven growth, as evidenced by sustained order book strength and margin improvement targets. While revenue trends show volatility, the company is actively restructuring its portfolio to improve profitability and reduce reliance on lagging segments.
- Revenue declined 30.2% QoQ to ₹521 in Q1FY27.
- ⚠️ 1) MHE segment continues to face margin pressure and project delays, with revenue decline persisting despite order book strength. 2) Export growth, wh
- Market Cap
- ₹10,768
- P/E Ratio
- 45.6
- P/B Ratio
- 4.67
- ROE
- 10.2%
- ROCE
- 15.9%
- Debt/Equity
- 0.00
- Div Yield
- 0.42%
- Promoter
- 59.3%
📖 The Story
Elecon Engineering is in a strategic transition phase, shifting focus from its traditional MHE (Material Handling Equipment) segment toward higher-margin Gear and export-driven growth, as evidenced by sustained order book strength and margin improvement targets. While revenue trends show volatility, the company is actively restructuring its portfolio to improve profitability and reduce reliance on lagging segments.
📰 What's Happening
In Q1 FY27 (reported 2026-07-18), Elecon delivered 11.9% YoY revenue growth to ₹521 crores, primarily driven by 16.3% growth in the Gear division, while MHE declined 2.9% due to project delays. Management highlighted a consolidated order book of ₹1,518 crores and expects sustainable MHE EBITDA margins of 22-24% and 24% EBITDA in Gear within 1-2 years, supported by double-digit export growth. Earlier board meetings (2026-06-22) approved the appointment of an additional independent director and committee reconstitution, reflecting governance updates aligned with strategic oversight needs.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 578 | 552 | 746 | 521 |
| Operating Profit | 100 | 82 | 131 | 79 |
| OPM % | 17.4% | 14.8% | 17.6% | 15.3% |
| Net Profit | 88 | 72 | 6 | 70 |
| EPS | ₹3.91 | ₹3.21 | ₹0.27 | ₹3.14 |
Quarterly financials reveal a clear inflection point: after peaking in September 2025 (₹578 crores revenue, ₹88 crores NP), revenue dipped to ₹746 crores in March 2026 with minimal profit (₹6 crores NP), followed by a rebound to ₹521 crores in June 2026 with ₹70 crores NP. This suggests operational stabilization post-seasonal or project-related fluctuations, with management attributing growth to order book momentum and export tailwinds.
🔮 Management Outlook & What's Next
Management has provided forward-looking guidance on margin improvement, targeting 22-24% EBITDA in MHE and 24% in Gear within 1-2 years, underpinned by export expansion and healthy order inflow. This indicates a deliberate pace of margin recovery rather than immediate gains, suggesting execution risk but a structured path toward profitability enhancement.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 22 | 22 | 22 | 22 |
| Reserves | 1,976 | 1,732 | 2,283 | 2,222 |
| Borrowings | 181 | 118 | 0 | 258 |
| Total Liabilities | 2,729 | 2,347 | 3,234 | 2,996 |
| Fixed Assets | 789 | 679 | 905 | 873 |
| Investments | 496 | 393 | 768 | 684 |
| Total Assets | 2,729 | 2,347 | 3,234 | 2,996 |
The balance sheet shows a strong cash position with near-zero net borrowings (₹0 in latest filing), and total assets grew to ₹3,234 crores as of March 2026, up from ₹2,729 crores a year ago. Reserves have steadily increased, reflecting retained earnings and capital resilience, while the absence of debt supports financial flexibility for ongoing investments or strategic opportunities.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +314 |
| Investing | -220 |
| Financing | -122 |
| Net Cash Flow | -27 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 59.3% | 59.3% | 59.3% | 59.3% |
| FII | 8.3% | 8.1% | 7.1% | 7.0% |
| DII | 4.1% | 4.5% | 5.7% | 7.2% |
| Public | 23.1% | 22.9% | 22.7% | 21.5% |
| # Shareholders | 1,26,319 | 1,21,939 | 1,22,574 | 1,16,624 |
Institutional investor shareholding has declined slightly from 8.31% (Q2FY26) to 6.99% (Q1FY27), while promoter holding remains stable at 59.27%. DII holdings also decreased marginally, but the number of public shareholders increased, indicating possible retail interest. No signs of large-scale institutional exit, but reduced FII participation may reflect sectoral rotation or valuation concerns.
⚖️ Peer Comparison — Capital Goods-Non Electrical Equipment
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| CUMMINSIND | 1.34 L Cr | 56.4 | 36.6% | — | 0.00 |
| WELCORP | 74,774 | 32.4 | 27.3% | — | 0.24 |
| APLAPOLLO | 60,807 | 49.5 | 35.9% | — | 0.15 |
| INDOMIM | 60,675 | — | — | — | 0.39 |
| TIINDIA | 47,521 | 78.3 | 23.6% | — | 0.05 |
| KIRLOSENG | 31,117 | 57.0 | 13.7% | — | 1.47 |
| JYOTICNC | 23,775 | 73.9 | 18.5% | — | 0.42 |
| CARBORUNIV | 22,867 | 108.4 | 8.0% | — | 0.08 |
| GRINDWELL | 21,218 | 48.6 | 23.3% | — | 0.00 |
| RATNAMANI | 19,865 | 45.9 | 15.7% | — | 0.07 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) MHE segment continues to face margin pressure and project delays, with revenue decline persisting despite order book strength. 2) Export growth, while cited as a driver, introduces volatility due to global demand and currency fluctuations. 3) OPM has declined from 17.6% (Mar 2026) to 15.3% (Jun 2026), signaling potential cost or pricing pressures not yet fully offset by volume gains.
📋 Recent Filings
- Announcement2026-08-03Elecon Engineering announced a schedule of analyst and institutional investor meetings, including a plant visit on August 5, 2026, and requested condo…
- 🔴 Financial Results2026-07-18Elecon Engineering reported consolidated revenue of **₹521 crores**, up 11.9% YoY, driven by 16.3% growth in the Gear division to **₹416 crores**, whi…
- 🔴 Announcement2026-07-16Elecon Engineering announced an updated credit rating from ICRA for its Rs. 400 crore bank facilities, reaffirming [ICRA]AA (Positive) and [ICRA]A1+ r…
- 🔴 Financial Results2026-07-10Elecon Engineering reported Q1 FY27 revenue of **₹521 crores**, up 11.9% YoY, with EBITDA at **₹109 crores** and PAT at **₹70 crores** (13.5% margin).…
- share transfer2026-07-07Elecon Engineering Company Limited received a SEBI Regulation 74(5) certificate from its share transfer agent MUFG Intime India Private Limited confir…
- Announcement2026-07-07Elecon Engineering announced an earnings conference call on July 13, 2026 at 4:00 PM IST to discuss Q1FY27 results, featuring CFO Chintan Shah and div…
- Financial Results2026-06-30Elecon Engineering announced that its trading window closes on 1 July 2026 for insiders and will reopen 48 hours after the unaudited financial results…
- 🟡 Board Meeting2026-06-26At the 66th AGM on June 25, 2026, Elecon Engineering shareholders approved all 8 resolutions including adoption of FY2026 audited financials, 150% fin…
- 🟡 Board Meeting2026-06-25Elecon Engineering held its 66th Annual General Meeting on 25 June 2026 via video conference, adopting audited financials for FY2025-26, declaring a f…
- 🟡 Board Meeting2026-06-22Elecon Engineering announced the appointment of Mr. Pranav C. Amin as an additional non-executive independent director effective 22 June 2026, followi…
🧠 Analyst's Read
Elecon is repositioning its business around Gear and exports, supported by a strong order book and improving cash flows, but near-term profitability remains sensitive to MHE performance and global headwinds. Investors should monitor margin trajectory in Gear and execution of export growth plans in the coming quarters.
Based on filing content and financial data. Not a recommendation.
Read the full analysis
Quarterly trends, balance sheet, cash flow, peer comparison, and AI insights — sign up free to unlock.
Sign Up Free — Unlock Full Analysis2 free AI queries per day.
Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-30.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
📡 Get AI alerts when ELECON files new disclosures
Track ELECON filings, board meetings, and corporate actions. Free email alerts at 5 PM.
Track ELECON — FreeFree account · 2 AI queries/day