Elecon Engineering's net profit rose by 9% year-on-year in the second quarter of fiscal year 2027, showing strong growth despite a decline in the first half of the year. The company also approved an interim dividend, reflecting confidence in its financial health and future prospects.
- Q2 FY27 net profit increased by 9% compared to the previous year.
- Revenue from operations grew 10.5% to ₹639 crore in Q2 FY27.
- EBITDA rose 17.5% to ₹148 crore with margin expansion to 23.1%.
- Consolidated open order book increased 33% year-on-year to ₹1,635 crore.
- Interim dividend of ₹0.50 per equity share approved for FY27.
What were Elecon Engineering's key financial results in Q2 FY27?
In the September quarter of FY27, Elecon Engineering's revenue from operations increased by 10.5% to ₹639 crore, up from ₹578 crore in the same quarter last year. The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 17.5% to ₹148 crore, improving its EBITDA margin from 21.73% to 23.1%. Net profit grew by 9% year-on-year, indicating solid operational performance during the quarter.
How did the company's order book and overseas business perform?
The consolidated open order book stood at ₹1,635 crore at the end of Q2 FY27, marking a 33% increase compared to the previous year. The overseas business, including exports and subsidiaries, showed strong momentum with revenue reaching ₹159 crore, a 30.6% year-on-year growth. This growth highlights Elecon's expanding international presence despite global economic uncertainties.
What was the performance of Elecon's business segments?
Elecon's gear division maintained stable order intake at ₹493 crore in Q2, with half-year order intake growing 8.8% to ₹1,063 crore. The gear segment's revenue increased by 10.6% to ₹488 crore, driven by disciplined execution. The material handling equipment (MHE) segment saw a 32.5% increase in order intake to ₹253 crore, supported by ₹68 crore in overseas orders, and revenue growth of 10.4% year-on-year. Project execution in the MHE segment improved compared to Q1, with expectations for further acceleration in the second half of FY27.
Why did Elecon's net profit decline in the first half of FY27?
Despite the positive quarterly results, Elecon Engineering's net profit for the first half of FY27 declined by 36.5% to ₹167 crore from ₹263 crore in the same period last year. The revenue for H1 FY27 increased by 8.5% to ₹1,160 crore. The adjusted profit after tax for H1 FY26 excluded certain income items, including ₹19 crore and ₹7 crore from arbitration income and ₹80 crore from unrealised mark-to-market gains, which affected comparability.
What dividend did Elecon Engineering declare?
The board of directors approved an interim dividend of ₹0.50 per equity share of ₹1 each for FY27. The record date for determining shareholder entitlement is October 21, 2026, with dividend payments scheduled after November 4, 2026. This dividend reflects the company's commitment to returning value to shareholders.
How did the market react to Elecon Engineering's Q2 FY27 results?
Following the earnings announcement, Elecon Engineering's shares surged by 14% to an intraday high of ₹501.8 on the National Stock Exchange. At 2:01 PM on the announcement day, the stock traded at ₹490.65, up 11.51%. The company's market capitalization reached ₹11,018.04 crore, indicating strong investor confidence.
Frequently Asked Questions
Q: What was Elecon Engineering's net profit growth in Q2 FY27?
A: The net profit increased by 9% year-on-year in Q2 FY27.
Q: How much did Elecon's revenue grow in Q2 FY27?
A: Revenue from operations grew by 10.5% to ₹639 crore.
Q: What interim dividend was declared for FY27?
A: An interim dividend of ₹0.50 per equity share was approved.
Q: How did the overseas business perform?
A: Overseas revenue reached ₹159 crore, growing 30.6% year-on-year.
Q: Why did net profit decline in H1 FY27 despite Q2 growth?
A: The decline was due to adjustments and exclusions in profit after tax for H1 FY26, affecting comparability.
