Elecon Engineering reported FY26 profit after tax of ₹341 crore on revenue of ₹2,366 crore, up 6.2% year-on-year. The company's closing order book reached a record ₹1,292 crore, providing strong revenue visibility for FY27. The MHE division showed strong performance.
Elecon Engineering Reports FY26 Profit of ₹341 Cr, Record Order Book
Elecon Engineering's Net Profit after Tax (PAT) for FY26 stood at ₹341 crore, on consolidated revenue of ₹2,366 crore, a 6.2% increase year-on-year.
Reader Takeaway: Record order book and strong MHE division drive visibility, but watch working capital and one-time charges.
What just happened
Elecon Engineering reported its financial results for the fiscal year ending March 2026. Key financial highlights include Net Sales of ₹2,366 crore, EBITDA of ₹523 crore, and Profit After Tax (PAT) of ₹341 crore. The company ended the fiscal year with a closing order book of ₹1,292 crore.
Why this matters
The record order book of ₹1,292 crore provides significant revenue visibility for the upcoming fiscal year (FY27). The Material Handling Equipment (MHE) division's strong performance, achieving its highest revenue in a decade with a 27.6% EBIT margin, indicates a successful strategic pivot to a product-focused model.
The backstory
In FY25, the company reported a PAT of ₹415 crore and Net Sales of ₹2,227 crore. The current year's PAT of ₹341 crore includes one-time impacts such as realised arbitration awards, mark-to-market gains, and a non-cash goodwill impairment charge related to the Benzlers-Radicon Group. The Gear Division faced challenges from deferred deliveries and supply chain disruptions.
What changes now
Elecon Engineering enters FY27 with a robust backlog and a healthy balance sheet, including a net cash position of approximately ₹700 crore and a low debt-to-equity ratio of 0.12x. The focus will be on converting the record order book into revenue and improving working capital efficiency.
Risks to watch
Investors should monitor the company's working capital management, as inventory and receivable days increased in FY26, impacting short-term cash flow efficiency. The reported PAT was also affected by one-time charges, including goodwill impairment.
Peer comparison
While the filing does not provide peer comparison data, the MHE division's strategic shift and strong margins suggest a potential competitive advantage within its segment. The Gear Division's performance indicates industry-wide or segment-specific challenges.
Context metrics (time-bound)
For FY26, Net Sales were ₹2,366 crore, up 6.2% YoY from ₹2,227 crore in FY25. EBITDA decreased slightly to ₹523 crore from ₹548 crore in FY25. Earnings Per Share (EPS) for FY26 was ₹15.2, down from ₹18.5 in FY25. The closing order book stood at ₹1,292 crore.
What to track next
Key metrics to watch include the conversion of the record order book into actual revenue and improvements in the working capital cycle. The company's ability to manage operational headwinds in the Gear Division and sustain the strong performance of the MHE division will be crucial.