Target: ₹751 | CMP: ₹542.95
Elecon Engineering Company Ltd. (EECL) reported a revenue increase of approximately 14 percent year-over-year in Q2 FY26. This growth in domestic market revenue was particularly pronounced, with an 18 percent rise attributed to strong demand from the power, steel, and cement sectors, which together comprised roughly 79 percent of total revenue.
In contrast, the company’s international business, accounting for about 21 percent of total revenue, remained unchanged year-over-year. The gear division, which constituted approximately 76 percent of total revenue, saw a 9 percent increase in growth. This was tempered by delays in project execution due to geopolitical challenges. Conversely, the Material Handling Equipment (MHE) segment, which represents around 24 percent of total revenue, reported a substantial growth of 33 percent on a year-over-year basis.
The EBITDA margin for Q2 FY26 settled at 22 percent, down from 23 percent in Q2 FY25. This margin decline is primarily attributed to rising employee costs and shifts in the product mix. Net profit after tax (PAT) remained stable when compared to the previous year.
During this quarter, both the order book and order intake surged, with growth rates of approximately 27 percent and 28 percent year-over-year, respectively. While the domestic market continues to exhibit robust growth, the ongoing geopolitical situation in the Middle East has adversely impacted the international business.
Published on October 16, 2025
