Elecon Engineering shares dive over 17%; what triggered today's fall

Shares of Elecon Engineering Company Ltd plunged in Friday's session, falling 17.35 per cent to a low of Rs 415.30, after the company reported a weak set of numbers for the December quarter (Q3 FY26).

The engineering firm posted a 33 per cent year-on-year (YoY) decline in consolidated net profit at Rs 72 crore for Q3 FY26, compared with Rs 107.5 crore in the corresponding quarter last year. Revenue for the quarter grew modestly by 4.3 per cent to Rs 551.7 crore from Rs 528.9 crore a year earlier.

Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 23.2 per cent YoY to Rs 109.2 crore, as against Rs 141.1 crore in the year-ago period. The EBITDA margin declined sharply to 19.8 per cent from 26.9 per cent in Q3 FY25.

Providing a segment-wise update, the company said revenue from the gear division remained flat during the quarter. According to Elecon, delays in order inflows during the first half of FY26 affected execution timelines and led to changes in dispatch and delivery schedules by customers.

The company also said that margins were impacted by the muted revenue performance, higher employee costs and changes in product mix during the quarter.

Separately, Elecon Engineering informed stock exchanges about a key management change. The board has noted and approved the resignation of Narasimhan Raghunathan as Chief Financial Officer and Key Managerial Personnel (KMP), effective from the close of business hours on January 31, 2026.

The company said the resignation was due to personal or family commitments, while adding that he will also cease to be the authorised KMP for determining materiality of events for stock exchange disclosures under Sebi listing regulations from the same date.