Elecon Engineering Q2 Profit Rises 9.8% to ₹96 Crore; Stock Up 3,257% Since April 2020
Elecon Engineering reported a 10.5% year-on-year rise in consolidated revenue to ₹639 crore in the September quarter, and its net profit increased 9.8% to ₹96 crore. The Elecon Engineering Q2 results come as the stock has gained nearly 3,257% since April 2020, when it traded near ₹14. At ₹470, an investment of ₹1 lakh made then would be worth about ₹33.6 lakh. Past returns do not guarantee similar returns going forward.
Q2 FY27 Results
EBITDA rose 17.7% to ₹148 crore, and the EBITDA margin expanded to 23.1% from 21.7% a year earlier. Consolidated order intake increased 8.4% to ₹746 crore, and the total open order book reached ₹1,635 crore as of September 30, 2026, up around 33% year on year.
| Indicator | Reading | Change / Signal |
|---|---|---|
| Consolidated revenue | ₹639 crore | +10.5% year on year |
| EBITDA | ₹148 crore | +17.7% |
| Net profit | ₹96 crore | +9.8% |
| EBITDA margin | 23.1% | Up from 21.7% |
| Order intake | ₹746 crore | +8.4% |
| Open order book | ₹1,635 crore | About +33% |
Segment Performance
The gear division's revenue rose 10.6% to ₹488 crore, and its EBIT increased 27.2% to ₹108 crore. Its open order book stood at ₹1,056 crore at the end of September. The material handling equipment division reported revenue of ₹151 crore, up 10.4%, with order intake up 32.5% to ₹253 crore and an open order book up 27.3% to ₹579 crore. Its profitability stayed under pressure from an unfavourable product mix, higher input costs and slower project execution.
Overseas revenue rose 30.6% year on year to ₹159 crore in the September quarter, and the company has secured overseas orders for material handling equipment as well as gears. In the June quarter, the gear division's revenue was ₹416 crore, up 16.3%, with an open order book of ₹1,043 crore, up 46.9% from a year earlier.
Six-Year Growth and a Mixed FY26
Elecon makes industrial gear solutions and material handling equipment for sectors including power, steel, cement, mining and infrastructure.
| Consolidated financials | FY20 | FY26 |
|---|---|---|
| Revenue | ₹1,088 crore | ₹2,366 crore |
| EBITDA, before other income | ₹140.4 crore | ₹523 crore |
| Net profit | ₹89.7 crore | ₹341 crore |
Revenue rose about 2.2 times and EBITDA about 3.7 times between FY20 and FY26, and the FY26 consolidated EBITDA margin was 22.1%. Growth was uneven, however. In FY26, revenue rose 6.2% to ₹2,366 crore, but net profit fell to ₹341 crore from ₹415 crore in FY25. The gear division faced delayed order inflows and customer-led postponements, while the material handling equipment division's revenue grew 43.6%.
Market and Sector Impact
The company has outlined capital expenditure of around ₹400 crore over FY26-28 to upgrade manufacturing facilities and expand capacity. The stock's large rise since April 2020 makes valuation and future earnings growth key considerations, and its run-up reflects business expansion, better operating margins and a stronger overseas presence.
What to Watch
Track conversion of the ₹1,635 crore order book into revenue, on-time project execution, whether the material handling division improves profitability, and continued growth in overseas business.