1. Opening Hook
While Europe sulked through an industrial slowdown, Harsha Engineers just decided to “Romania their way” out of it. After quarters of red ink overseas, the company finally turned its Romanian unit EBITDA-positive — proving that persistence (and maybe a few late nights in Ahmedabad) pays off. The CEO’s cautious optimism sounded like someone who’s been burned before but still believes in miracles. And wait till you hear about those bushings — they’re rolling smoother than a stockbroker after a rate cut. Keep reading, it only gets juicier from here. 😏
2. At a Glance
- Revenue up 38%– Europe called, and Harsha answered — finally, growth that isn’t PowerPoint magic.
- EBITDA ₹63 cr (vs ₹50 cr YoY)– Margins dipped a bit, but still better than Romanian winters.
- Exports up 27% QoQ– The EU seems to prefer Made-in-India cages after all.
- Subsidiary loss cut to ₹2 cr (from ₹17 cr)– A real turnaround, not just Excel formatting.
- Capex ₹68 cr in H1– Because nothing says confidence like building a new factory in Bhayla.
- Stock?Traders are now whispering “Harsha’s hot again.”
3. Management’s Key Commentary
“Harsha Romania has posted a strong top line and positive EBITDA.”(Translation: Finally, the European headache got a mild aspirin. 😌)
“Total exports grew 27% QoQ to ₹123 cr; Europe’s demand looks sustainable.”(Read: We’ll take this win, but we’ve said that before too.)
“China operations maintained 12% EBITDA on ₹65 cr turnover.”(Translation: The dragon behaves when you keep it small.)
“EBITDA decline is due to new plant depreciation and RM lag.”(So, blame it on accounting — the universal corporate scapegoat.)
“Bronze bushing vertical grew 25%; will hit 30% for FY26.”(The bushing boys are crushing it — finally, some shiny metal in the story.)
“Harsha Advantek loss ₹5.7 cr due to suboptimal utilization.”(Translation: The plant’s working; the invoices aren’t.)
“We’re cautiously optimistic about Romania’s sustainability.”(Read: We’ll party only after two more good quarters.) 🎉
4. Numbers Decoded
| Metric | Q2FY26 | Q1FY26 | Q2FY25 | Comment |
|---|---|---|---|---|
| Consolidated Revenue | ₹363 cr | ₹349 cr | ₹310 cr | Growth’s finally real, not a rounding error. |
| EBITDA | ₹63 cr | ₹65 cr | ₹50 cr | Slight dip; new plant blues. |
| EBITDA Margin | 17.4% | 18.7% | 16.1% | Normalizing post raw-material magic. |
| PAT (Est.) | ₹37 cr | ₹39 cr | ₹31 cr | Flat-ish, but beats last year. |
| Export Sales (India) | ₹123 cr | ₹97 cr | ₹110 cr | Europe’s ordering seconds. |
| Capex (H1FY26) | ₹68 cr | — | ₹40 cr | Bhayla soaks up the funds. |
| Working Capital Days | 146 | 139 | 146 | Still long — cash naps between invoices. |
TL;DR:Growth solid, margins stable-ish, Romania breathing, Bhayla still warming up.
5. Analyst Questions
Q:Why domestic growth looks dull?A:Air-conditioner customers caught a cold; others are fine.
Q:What drove Romania’s turnaround?A:Finished goods > Semi-finished; same customers, fewer losses.
Q:Capex timeline?A:₹110–120 cr this year; Bhayla still getting new machines.
Q:Large-size cages status?A:₹77 cr H1 turnover, +33%; industrials love ‘em.
Q:Breakeven for Bhayla?A:A year away — or two, depending on customer mood. 😅
6. Guidance & Outlook
Management reaffirmed ahigh single-digit topline growthfor FY26 withlow-to-mid teensgrowth in the India engineering segment. Margins should stabilize once Bhayla ramps up and raw-material cost pass-through catches
