Harsha Engineers International reported a consolidated engineering revenue of INR 428 crore for Q2 FY2027, up from INR 363 crore last year. While the India business shows strong momentum with 23% H1 growth, the company is actively downsizing its loss-making Romania unit. Management maintains a full-year revenue growth guidance of 10% to 12% despite anticipating seasonal weakness in the upcoming quarter.
Harsha Engineers Q2 Revenue Climbs to INR 428 Crore
Consolidated revenue reached INR 428 crore; EBITDA improved to INR 81.1 crore.
Reader Takeaway: Strong India segment growth drives results, while management prioritizes cutting losses in Romania to stabilize margins.
What just happened
Harsha Engineers International posted its Q2 FY2027 results, showing significant year-on-year growth. Consolidated engineering revenue rose to INR 428 crore from INR 363 crore in the year-ago period. EBITDA followed a similar upward trend, landing at INR 81.1 crore, up from INR 63 crore previously.
Why this matters
The company is successfully scaling its specialty segments. Bushings saw 26% sequential growth, while Stampings and Large Size Bearings (LSB) grew 19% and 35% sequentially, respectively. This performance highlights the firm's operational resilience even as it manages international headwinds.
The backstory
The Romania facility has remained a drag on profitability. Management has officially initiated a downsizing strategy to arrest losses, with the objective of reaching a break-even point by the end of the current financial year. This restructuring is critical to align with the company's long-term consolidated margin target of 17% to 18%.
What changes now
Management has reaffirmed its full-year guidance of 10% to 12% consolidated revenue growth. However, they have issued a note of caution regarding Q3. Due to the fiscal calendars of international buyers, demand often softens during this period, which may temper performance in the second half of the year.
Risks to watch
Key risks include the potential for one-off costs related to the Romania restructuring and the impact of persistent inflation on indirect costs. Investors should also monitor whether the company can maintain its India Engineering EBITDA margins of approximately 22% amidst rising cost pressures.
What to track next
Watch for the progress on the Romania turnaround and the company's ability to navigate potential Q3 demand seasonality. Continued capacity ramp-up in key engineering segments will remain a primary driver for top-line growth.