ELECON's Q2 FY27 numbers came in strong, with revenue of Rs. 638.94 Cr (+10.50% YoY) and PAT growth of +9.80% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 14, 2026 |
|---|
| Quarter | Q2 FY 2026-2027 |
|---|
| Revenue (Q2) | Rs. 638.94 Cr (+10.50% YoY) |
|---|
| PAT (Q2) | Rs. 96.35 Cr (+9.80% YoY) |
|---|
| EBITDA margin | 23.15% (+142 bps YoY) |
|---|
| EPS (Q2) | Rs. 4.29 (+9.70% YoY) |
|---|
| Market cap | Rs. 10,938.47 Cr |
|---|
| CMP | Rs. 486.90 |
|---|
Quarter Snapshot
Elecon delivered 10.5% YoY revenue growth with EBITDA margin up 142 bps to 23.15%, led by the Gear segment (EBIT +27.2%, margin +290 bps), while the order book closed at Rs.1,635 Cr (+33% YoY) and H1 CFO/PAT of 1.45× supports earnings quality. H1 revenue of Rs.1,159.50 Cr keeps management's FY27 no-degrowth guidance of Rs.2,366 Cr on track, with the Rs.1,635 Cr order book feeding H2 visibility. MHE margin compression (EBIT −13.4% YoY) on delayed project clearances and higher input costs is the near-term watch item heading into H2 execution.
Key Investment Insights
Key Positives
- Revenue grew 10.5% YoY to Rs.638.94 Cr with EBITDA margin up 142 bps YoY to 23.15%
- Gear segment EBIT grew 27.2% YoY with margin up 290 bps to 22.1% on mix and operating leverage
- Order book closed Q2 at Rs.1,635 Cr, up 33% YoY; Gear order book up 37% YoY to Rs.1,056 Cr
- MHE order intake rose 32.5% YoY to Rs.253 Cr, including ~$9 Mn of export orders; MHE order book up 27.3% YoY to Rs.579 Cr
- H1 CFO of Rs.241.93 Cr at 1.45× PAT; H1 free cash flow of Rs.130.76 Cr
- Overseas revenue of Rs.159 Cr in Q2, up 30.6% YoY; overseas share of H1 revenue rose to 27% from 23%
- ICRA upgraded long-term rating to AA (Positive); SBI released collateral security on working-capital limits
- H1 revenue of Rs.1,159.50 Cr (+8.5% YoY) keeps the FY27 no-degrowth guidance (Rs.2,366 Cr) on track
Risk Factors
- MHE EBIT fell 13.4% YoY with margin compressing from 27.4% to ~20-22% on product mix, higher input costs and delayed project clearances
- Manufacturing and erection charges rose 53% YoY (+290 bps of revenue) and other expenses rose 130 bps of revenue
- Finance costs rose 81.6% YoY to Rs.10.33 Cr on higher lease liabilities and working-capital facilities
- Standalone PAT fell 5.2% YoY to Rs.74.75 Cr; consolidated PAT growth of 9.8% relied on subsidiary PAT up 144.6% YoY
- Inventories rose Rs.69 Cr over six months to Rs.370.50 Cr; Q2 gross margin was cushioned by inventory build absorbing steel-cost pressure