1. At a Glance – Blink and You’ll Miss the Contradictions
Harsha Engineers International Ltd is that classic Indian mid-cap story that looks solid on the surface and slightly confused underneath. Market cap of ₹3,605 Cr, stock price hovering around ₹396, and a quarterly performance that just clocked ₹409 Cr revenue with 25.9% YoY PAT growth. Sounds great, right? Except ROE is chilling at 8.75%, sales growth over 3 years is a sleepy 2%, and the stock trades at ~29x earnings while returns over the last year are negative.
This is a company that dominates Indian bearing cages like Virat dominates cover drives – 50–60% market share in the organised segment – yet struggles to convert that dominance into consistently sexy shareholder returns. Add a solar EPC side-business, global clients like SKF and Timken, and a ₹250 Cr capex plan, and you’ve got a stock that keeps analysts awake at night asking: “Is this a compounder warming up… or just stretching?”
2. Introduction – Precision Engineering Meets Precision Confusion
Harsha Engineers is not new money. Incorporated in 2010, it quickly became a critical supplier to the global bearing ecosystem. If you’ve driven a car, sat in a train, or used any rotating machinery, chances are Harsha’s bearing cages were silently doing their job.
But markets don’t reward silence. They reward growth, returns, and narrative clarity.
Between FY22 and FY24, Harsha’s core engineering business stayed flattish, thanks to commodity price corrections and Europe-China slowdown. Meanwhile, the solar EPC business decided to show up late but loud, growing 99% over the same period.
So today, Harsha looks like a company standing at a crossroads: one foot in a cyclical global auto-industrial supply chain, the other in
India’s renewable optimism. The question investors keep asking (and should ask): Can Harsha scale without losing its margin soul?
3. Business Model – WTF Do They Even Do?
Let’s break it down like you’re explaining it to your CA friend who pretends to understand manufacturing.
A) Engineering Business – The Serious One (91% of H1 FY25 Revenue)
This is Harsha’s bread, butter, and factory grease.
They manufacture bearing cages made of brass, steel, and polyamide – ranging from 20 mm to 2,000 mm. Over 7,500 SKUs, serving automotive, railways, aviation, mining, agriculture, and heavy industry.
Key flex:
- Supplies all top 6 global bearing manufacturers
- 70–75% of standalone revenue comes from these whales
- Manufacturing across India, China, Romania
Problem:
- Average selling prices dropped
- Overseas demand slowed
- Result: flat revenue despite global footprint
B) Solar EPC – The Energetic Side Hustle (9% of H1 FY25 Revenue)
This segment installs rooftop and small ground-mounted solar projects (up to 4–5 MW).
Installed capacity till FY24: 500 MW
Growth FY22–FY24: 99%
Management wisely decided not to go full Adani here. They’re sticking to smaller, manageable projects. Sensible. Not sexy, but sensible.
4. Financials Overview – Numbers Don’t Lie, They
