Elecon Engg ends higher after Q2 profit rises nearly 10% YoY
Profit before tax (PBT) climbed 10.42% YoY to Rs 124.76 crore in Q2 FY27.
EBITDA rose 17.7% YoY to Rs 148 crore, compared with Rs 126 crore in the corresponding quarter last year. The EBITDA margin expanded by 140 basis points to 23.1% from 21.7%.
The Gear division remained the key growth driver, reporting a 10.6% YoY increase in quarterly revenue to Rs 488 crore. Earnings before interest and tax (EBIT) rose 27.2% to Rs 108 crore, while the EBIT margin improved to 22.1% from 19.2%. The margin improvement was driven by outpacing in revenue growth, a favourable revenue mix, and supported by operating leverage.
The division's order intake stood at Rs 493 crore in Q2 FY27. Its open order book expanded 37% YoY to Rs 1,056 crore as of September 30, providing visibility for future revenue.
The Material Handling Equipment (MHE) division recorded a 10.4% increase in quarterly revenue to Rs 151 crore. However, EBIT declined 13.4% to Rs 31 crore, and the EBIT margin contracted to 20.2% from 25.7%. The company attributed the pressure on profitability to an unfavourable product mix, higher input costs and delays in project clearances that affected execution.
Despite the margin pressure, the MHE division recorded strong order momentum, with order intake rising 32.5% YoY to Rs 253 crore, including overseas orders worth Rs 68 crore. Its open order book increased 27.3% to Rs 579 crore.
Prayasvin B. Patel, chairman and managing director of Elecon Engineering, said ? overseas business, comprising exports and overseas subsidiaries, continued to gain momentum, with revenue reaching Rs 159 crores during Q2 FY27, and registering 30.6% Y-o-Y growth. While global macroeconomic and geopolitical uncertainties persist, we remain focused on strengthening our reach across international markets.
Our consolidated order intake increased 8.4% Y-o-Y to Rs 746 crores during Q2 FY27 and 15.3% to Rs 1,501 crores during H1 FY27. The consolidated open order book stood at Rs 1,635 crore as of 30th September 2026, up approximately 33% Y-o-Y, with healthy contributions from both divisions. Our robust order book not only provides strong revenue visibility but also reinforces our confidence in continuing to be the preferred choice of our customers.?
Elecon Engineering Company is one of the largest manufacturers of Industrial Gears and Material Handling Equipment with over seven decades of experience and expertise in Asia.
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