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Eimco Elecon Q4 Profit Plummets 57% Despite Revenue Growth

Eimco Elecon reported a steep 57.22% decline in its fourth-quarter net profit to Rs 6.36 crore, despite a 4.04% rise in revenue. The company's performance was weighed down by a 16.09% surge in total expenses during the quarter. For the full financial year FY26, the company's net profit also fell to Rs 38.71 crore from Rs 48.91 crore in FY25. The board has recommended a dividend of Rs 4 per equity share for the year, subject to shareholder approval.

Key Points: Eimco Elecon Q4 Profit Drops 57%, Dividend Recommended

  • Q4 profit down 57%
  • Revenue up 4%
  • Expenses surge 16%
  • Full-year profit declines
  • Dividend of Rs 4/share recommended
2 min read

Mining equipment maker Eimco Elecon's Q4 profit crashes over 57 pc

Eimco Elecon's Q4 FY26 profit crashes 57% to Rs 6.36 cr. Revenue rises 4%, but expenses surge 16%. Board recommends Rs 4/share dividend.

"Profit before tax also fell significantly by 54.55 per cent year-on-year - Company Filing"

Mumbai, April 14

Eimco Elecon Limited on Tuesday reported a 57.22 per cent decline in its fourth-quarter profit for FY26.

The Gujarat-based mining and construction equipment manufacturer posted a profit of Rs 6.36 crore for the quarter ended March 31 (Q4 FY26), compared to Rs 14.87 crore in the same period previous financial year (Q4 FY25).

Profit before tax also fell significantly by 54.55 per cent year-on-year to Rs 8.94 crore, according to its stock exchange filing.

Despite the drop in profitability, revenue from operations increased 4.04 per cent to Rs 66.88 crore in Q4 FY26, compared with Rs 64.28 crore in the corresponding quarter of the previous financial year.

However, higher expenses weighed on the overall performance. Total expenses rose 16.09 per cent year-on-year to Rs 56.62 crore.

During the quarter, the cost of materials consumed declined 21.44 per cent to Rs 22.97 crore, while compensation paid to distributors increased slightly by 1.61 per cent to Rs 7.57 crore.

For the full financial year FY26, the company reported a net profit of Rs 38.71 crore, lower than Rs 48.91 crore recorded in FY25.

The board of the company has recommended a dividend of Rs 4 per equity share, or 40 per cent, for FY26.

The dividend will be subject to approval by shareholders at the upcoming Annual General Meeting and is expected to be paid within 30 days after its conclusion.

Eimco Elecon is mainly engaged in manufacturing equipment used in the mining and construction sectors.

Founded in 1974 and based in Vallabh Vidyanagar, Gujarat, the company produces underground mining machinery such as Load Haul Dumpers, Side Dump Loaders and drilling equipment.

It supplies to major companies including Coal India subsidiaries, Hindustan Zinc and Vedanta.

Shares of the company ended at Rs 1,760.50 on April 13, down 0.20 per cent. The stock market remained closed on the following day on account of Dr Babasaheb Ambedkar Jayanti.

- IANS

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Reader Comments

S
Sarah B
Interesting to see they're still recommending a dividend despite the profit crash. That's a positive signal for long-term shareholders, I suppose. The 40% payout shows confidence, or maybe it's just to keep investor sentiment from falling further.
A
Ananya R
As someone from Gujarat, it's sad to see a homegrown company like Eimco Elecon struggle. They supply to Coal India and Vedanta, so their performance is linked to our core industries. Hope this is just a temporary blip. 🇮🇳
V
Vikram M
Cost of materials consumed down by 21% but total expenses up 16%? That math doesn't add up. Where is all the extra money going? Compensation to distributors only went up slightly. The company needs to be more transparent about these "higher expenses."
K
Karthik V
Mining sector has been volatile. Maybe a slowdown in new projects? The stock price holding relatively steady near ₹1760 is a good sign though. Long-term, infrastructure push by the government should benefit them. Patience is key.
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Priya S
A 57% drop in profit is massive, yaar. But at least topline growth is there (4%). Focus should be on operational efficiency now. The dividend is a nice gesture for loyal investors waiting through this rough patch.

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