Elecon Engineering falls 4% on mixed Q2 numbers; Emkay retains 'Buy'

Elecon Engineering Company reported total income of ₹596.45 crore in Q2FY26, up 14.8 per cent from ₹519.53 crore in the year-ago period

Elecon Engineering share price today: Shares of Elecon Engineering, an industrial gearbox manufactuer, fell over 4 per cent to hit an intraday low of ₹527.9 on the NSE after the company reported a mixed set of results for the second quarter of financial year 2025-26 (Q2FY26).  

 

At 03:00 PM, the stock was trading at ₹528.75, down 4.2 per cent from the previous day's close of ₹551.75 on the NSE. The stock has plunged nearly 29 per cent from its 52-week high of ₹739.1 touched on October 17, 2024. The company's market capitalisation stood at ₹11,867.4 crore. 

Elecon Engineering Q2FY26 results

In the quarter under review, the company reported total income of ₹596.45 crore, up 14.8 per cent from ₹519.53 crore in the year-ago period. Elecon's profit after tax (PAT) remained at ₹87.72 crore in the reported quarter. The company's earnings before interest, tax, depreciation, and amortisation (Ebitda) grew 11.9 per cent year-on-year (Y-o-Y) to ₹126 crore from ₹112 crore in the year-ago quarter. Elecon reported order-in-take for the quarter of ₹688 crore, with a growth of 28 per cent Y-o-Y.

 

The company also declared an interim dividend of ₹0.5 per share. The record date for determining the eligibility of the shareholders will be October 16, and the dividend will be paid by November 3, 2025. 

Emkay Global on Elecon Engineering

Emkay Global Financial Services said the company saw an overall mixed set of results, with revenue coming in line with and Ebitda margin lower than estimates. The flat PAT growth was owing to an increase in depreciation on new capacity commissioning and a higher tax rate.

 

In its research note, the brokerage said the management indicated a strong enquiry pipeline across the business and exuded confidence in achieving ₹2,650 crore revenue for FY26, as against 1HFY26 reported revenue of ₹1,100 crore. 

Besides the strong domestic demand, analysts expect exports to see a meaningful recovery on the back of increased focus on key geographies, such as Europe, the Middle East, the Americas, Nordic countries, and Russia.

 

The domestic brokerage has maintained a 'Buy' rating on the stock, saying that the company's leadership in gears, strong export momentum, and robust recovery in the MHE segment position it to be a key beneficiary of India's industrial and infrastructure cycle as well as global opportunities. 

 

Emkay Global projects revenue and PAT CAGR at 21 per cent and 24 per cent, respectively, over FY25-28. The brokerage has set a target price of ₹750, implying a 36 per cent upside from Monday's closing price.