Why Elecon Engineering shares slipped 6% after Q1 FY27 results

Shares of Elecon Engineering Company Ltd fell in Friday's trade after the company reported a sharp year-on-year (YoY) decline in consolidated net profit for the June quarter (Q1 FY27), despite posting higher revenue and maintaining a healthy order book.

The stock declined 5.98 per cent to hit a day low of Rs 482.30. It later trimmed some losses and was last trading 3.12 per cent lower at Rs 497.

For the quarter ended June 30, 2026, Elecon Engineering reported a consolidated profit after tax (PAT) of Rs 70.35 crore, down 59.90 per cent from Rs 175.44 crore in the corresponding quarter last year. In the preceding March quarter (Q4 FY26), the company had posted a net profit of Rs 6 crore after reporting an exceptional loss of Rs 101.77 crore.

Revenue from operations, however, increased 6.11 per cent YoY to Rs 520.56 crore in Q1 FY27 from Rs 490.57 crore in the year-ago period.

Commenting on the performance, Prayasvin B Patel, Chairman & Managing Director of Elecon Engineering, said the company recorded a consolidated order intake of Rs 755 crore during the quarter, while consolidated open order book stood at Rs 1,518 crore as of June 30, 2026, providing strong revenue visibility for the quarters ahead.

He added that the company's Gear Division continued its growth momentum, reporting revenue of Rs 416 crore compared with Rs 357 crore in Q1 FY26, reflecting a 16.3 per cent year-on-year increase. The division posted an EBIT margin of 17.9 per cent.

"This performance was driven by improved execution across our overseas subsidiaries and healthy demand across domestic markets," Patel said.

The Material Handling Equipment (MHE) division reported revenue of Rs 105 crore with an EBIT margin of 25.6 per cent. Patel said the division witnessed a temporary moderation in project execution during the quarter, though the demand environment remained strong.

"Our overseas revenue reached Rs 151 crore during the quarter, contributing 29 per cent of consolidated revenue and registering a robust YoY growth of 21.9 per cent. Additionally, our MHE division has secured an overseas order worth Rs 21 crore for the port industry during the quarter, demonstrating our strategic initiatives are paying dividends," he added.

Elecon Engineering manufactures industrial gearboxes and material-handling equipment, serving sectors including power, steel, cement and mining. The Gujarat-based company operates through two key business segments -- Gears and MHE -- and has a presence across India as well as international markets, including Asia, the Middle East, the US, the UK and Africa.