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Elecon Engineering Q4 Profit Plunges 96% to Rs 6 Crore on Exceptional Loss

Elecon Engineering reported a drastic 96% year-on-year drop in its Q4 net profit to just Rs 6 crore, primarily due to an exceptional loss of over Rs 101 crore. The company's revenue from operations also declined by 6.5% to Rs 745.61 crore for the quarter. Operating performance weakened as EBITDA fell 19% and margins contracted. However, the Chairman expressed optimism, citing a strong order book and expected growth from sectors like power, steel, and cement.

Key Points: Elecon Engineering Q4 Profit Drops 96% to Rs 6 Crore

  • 96% profit plunge to Rs 6 cr
  • Rs 102 cr exceptional loss hits bottom line
  • Revenue down 6.5% to Rs 746 cr
  • EBITDA falls 19%, margins contract
2 min read

Elecon Engineering's Q4 profit plunges 96 pc to Rs 6 crore on exceptional loss

Elecon Engineering's Q4 net profit fell 96% to Rs 6 crore due to a Rs 102 crore exceptional loss. Revenue and EBITDA also declined.

"strong open order book... provides good visibility for the coming year - Prayasvin B. Patel"

Mumbai, April 15

Industrial gearbox manufacturer and a premier material handling equipment provider Elecon Engineering Company Limited on Wednesday reported a sharp 96 per cent drop in its net profit to Rs 6 crore for the fourth quarter of FY26, mainly due to a large exceptional loss during the period.

The company had posted a net profit of Rs 146.48 crore in the same quarter previous financial year (Q4 FY25), according to its stock exchange filing.

The steep decline in profit was largely impacted by an exceptional loss of Rs 101.77 crore reported in the March quarter, compared to no such loss a year ago.

Revenue from operations also declined during the quarter. Elecon Engineering reported revenue of Rs 745.61 crore, down 6.51 per cent from Rs 797.57 crore in the year-ago period.

Operating performance remained weak as well. The company's EBITDA fell 19 per cent year-on-year to Rs 158 crore from Rs 195 crore, while margins narrowed to 21.2 per cent from 24.4 per cent in the corresponding quarter previous financial year.

The expenses for the fourth quarter stood at Rs 621 crore, compared to Rs 626.6 crore in year-ago period, as per its regulatory filing.

Commenting on Q4 results, Prayasvin B. Patel, Chairman and Managing Director of Elecon Engineering Company Limited said that the strong open order book, combined with a healthy order inflow outlook across markets, provides good visibility for the coming year.

"In India, sustained investment activity in key sectors such as power, steel, and cement is expected to drive growth," Patel added.

Elecon Engineering, which is one of Asia's largest industrial gearbox manufacturers, operates across key sectors such as power, steel, cement and mining.

The company has two major business divisions -- gears and material handling equipment -- and offers products ranging from industrial gearboxes to conveyor systems and wagon tipplers.

Founded in 1951 and headquartered in Gujarat, the company has built a strong presence not only in India but also across global markets including Asia, the Middle East, the US, the UK and Africa.

- IANS

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Reader Comments

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Priya S
This is why we should look at operating profit (EBITDA) alongside net profit. Even EBITDA is down 19%, which shows underlying business pressure, not just an accounting loss. Revenue decline in a growing economy is concerning. Hope the order inflow picks up as they say. 🤞
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Aman W
Elecon is a solid, old company from Gujarat. They've seen cycles before. The chairman's statement about power, steel, cement sectors is accurate – government capex is strong there. This quarter might be a blip. Long-term investors should hold, maybe even average down if the price corrects more.
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Sarah B
As a retail investor, transparency is key. A Rs 100+ crore exceptional loss needs a detailed breakdown in plain language, not just in the notes to accounts. What exactly caused it? A legal settlement? Asset write-off? Without clarity, it's hard to trust the "good visibility" claim.
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Karthik V
The global slowdown in manufacturing is hitting our capital goods companies. Elecon's exports would be under pressure. But their domestic story linked to infrastructure is intact. Margins at 21% are still decent. Let's hope Q1 FY27 shows the promised recovery.
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Nisha Z
My father worked in a plant that used Elecon gearboxes. They are known for quality. One bad quarter doesn't define a 70+ year old company. The focus should be on whether they are investing in new tech and retaining talent. The bottom line will follow.

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