Elecon Engineering’s stock took a sharp hit on Friday, dropping 16% to a nine‑month low of ₹422 after the company posted its December‑quarter results.
Key Highlights
- Share price fell 16% intraday, reaching ₹422.
- Net profit slipped 33% to ₹72 crore.
- Revenue grew modestly 4.3% YoY to ₹552 crore.
- Guidance for FY26 revenue may be cut by up to 5%.
Financial Performance
The company reported a net profit of ₹72 crore for Q3 FY26, down from ₹108 crore a year earlier. Revenue rose slightly to ₹552 crore, helped mainly by the material handling equipment (MHE) division, which grew 16.3% to ₹123 crore.
The gear segment, Elecon’s core business, stayed flat at ₹429 crore because order inflows slowed, causing delays in dispatches.
Adjusted EBITDA for the quarter was ₹109 crore, giving an EBITDA margin of 19.8%, while profit after tax (PAT) margin was 13.0%.
Future Outlook
Management said the order book was strong, with orders worth ₹701 crore for the quarter and a total order backlog of ₹1,372 crore as of December 31, 2025. They expect this pipeline to support revenue growth and margin recovery.
However, the company warned that FY26 revenue could be lower by up to 5% and adjusted EBITDA margins might fall by up to 2%.
Share Price Movement
Elecon’s shares have been under pressure, down about 40% from the July 2025 peak of ₹716 and 42% from the all‑time high of ₹739. The stock fell 24% in the calendar year 2025, marking its first annual decline in five years.
Despite the recent weakness, the longer‑term trend remains positive: the share price is up roughly 140% over the past three years and about 1,630% over the last five years.
Disclaimer
Remember, this is just an overview, not a prediction. Do your own research and consider speaking with a qualified financial advisor before making any investment decisions.