Elecon Engineering Q2FY26 Concall Decoded: – Gears Keep Turning, Even When Orders Don’t
1. Opening Hook
While the world worries about wars, Elecon seems to have built its own — against time, geopolitics, and gravity itself. The CMD calmly called delays “timing issues,” which in manufacturing lingo means: client wants it next quarter, not now. With exports flat and defense orders stuck in bureaucratic fog, Elecon still clocked double-digit growth — proving that old-school engineering can out-stubborn chaos. The real question though — can their 70-year-old gears spin fast enough to hit FY26’s ₹2,650 crore target? Stick around, this call had more torque than Tesla’s Cybertruck. ⚙️
2. At a Glance
Revenue – ₹578 Cr – Up 14% YoY; growth running on diesel, not EV mode.
EBITDA – ₹126 Cr – Margins at 21.7%; gearbox smooth, but a little grease needed.
PAT – ₹88 Cr – 15.2% margin; shareholders can finally unclench.
Gear Division – ₹441 Cr (76% of revenue) – Custom gears turning profits, not heads.
MHE Division – ₹137 Cr (24%) – Up 33% YoY; the underdog’s comeback story.
Order Intake – ₹688 Cr (+28% YoY) – Pipeline thicker than a steel shaft.
Cash Reserves – ₹600 Cr – CFO sleeping well at night.
Interim Dividend – ₹0.50/share – Enough to buy a chai, not a gear tooth.
3. Management’s Key Commentary
“Despite short-term delays, fundamentals remain strong.” (Translation: clients ghosted us for a quarter, but we’ll get closure soon.)
“Order intake of ₹688 Cr shows robust demand.” (Because Power, Cement, and Sugar still love big shiny metal boxes.)
“EBITDA margins dipped due to product mix and employee costs.” (Too many engineers, not enough margin engineers.)
“We’ll hit ₹2,650 Cr revenue and 24% margin by FY26.” (That’s optimism forged in hardened steel.)
“Exports to be 50% of total revenue by FY30.” (Global domination, one slow shipment at a time.)
“Defense tenders like P-17 Bravo and Aircraft Carrier projects in the pipeline.” (If Navy ever decides to float the order instead of the ship.) ⚓
“We have ₹600 Cr net cash and ₹400 Cr capex plan.” (That’s CFO code for ‘We’re rich but cautious.’) 😏
