Elecon Engineering Company Ltd
NSE:ELECON
Elecon Engineering Company Ltd
Elecon Engineering Company Ltd. traces its origins to a post-independence India longing for industrial prowess. Founded in 1951, the company initially embarked on a journey into manufacturing cutting-edge transmission equipment. Over the years, Elecon evolved into a powerhouse of mechanical engineering, gradually expanding its horizons into material handling, elevators, and escalators. The heartbeat of Elecon's operations pulsates in the intricately designed gearboxes and material handling solutions that form its core offerings. With a solid grounding in engineering excellence, it forges complex machinery that channels raw materials and goods within industries, crucial for sectors spanning from steel to cement and fertilizers to power generation.
Elecon's profitability stems from its expertise in engineering and precision manufacturing, thriving on projects that require substantial customization and innovation. It has carved a niche in crafting tailored solutions, thus commanding a loyal clientele who seek bespoke machinery to drive their operations. Through a meticulous design and manufacturing process, Elecon ensures that each product not only meets but often exceeds the high standards of durability and efficiency demanded by its clients. By delivering value through these bespoke systems and maintaining a robust after-sales service network, Elecon solidifies its revenue stream, positioning itself as a vital cog in the industrial supply chain. Pursuing geographical expansion and continuous technological upgrades, the company stays aligned with the evolving landscape of industrial mechanics and logistics, ensuring sustained growth and resilience in a competitive market.
Elecon Engineering Company Ltd. traces its origins to a post-independence India longing for industrial prowess. Founded in 1951, the company initially embarked on a journey into manufacturing cutting-edge transmission equipment. Over the years, Elecon evolved into a powerhouse of mechanical engineering, gradually expanding its horizons into material handling, elevators, and escalators. The heartbeat of Elecon's operations pulsates in the intricately designed gearboxes and material handling solutions that form its core offerings. With a solid grounding in engineering excellence, it forges complex machinery that channels raw materials and goods within industries, crucial for sectors spanning from steel to cement and fertilizers to power generation.
Elecon's profitability stems from its expertise in engineering and precision manufacturing, thriving on projects that require substantial customization and innovation. It has carved a niche in crafting tailored solutions, thus commanding a loyal clientele who seek bespoke machinery to drive their operations. Through a meticulous design and manufacturing process, Elecon ensures that each product not only meets but often exceeds the high standards of durability and efficiency demanded by its clients. By delivering value through these bespoke systems and maintaining a robust after-sales service network, Elecon solidifies its revenue stream, positioning itself as a vital cog in the industrial supply chain. Pursuing geographical expansion and continuous technological upgrades, the company stays aligned with the evolving landscape of industrial mechanics and logistics, ensuring sustained growth and resilience in a competitive market.
Revenue Growth: Elecon reported Q3 consolidated revenue of INR 552 crores, up 4.3% year-on-year despite execution delays, with MHE division growing 16% and Gear division largely flat.
Margins: EBITDA margin declined to 19.8% in Q3, impacted by higher employee costs and product mix; management expects normalization as volumes recover.
Order Intake: Q3 consolidated order intake grew 7% YoY to INR 701 crores; total order book provides strong revenue visibility, though near-term execution is deferred.
Guidance Cut: FY26 guidance was revised lower: revenue now expected to be up to 5% below previous guidance, and adjusted EBITDA margin up to 2% lower.
MHE Momentum: Material Handling Equipment division remains a key growth driver, with robust demand from power, cement, mining, and ports and a healthy order book.
Export Ambitions: Management reiterated long-term goal to reach 50% export revenue mix by FY30, but cited ongoing geopolitical and market headwinds.
Domestic Focus: In India, the company will prioritize maintaining market share and margins over aggressive share gains, supported by strong demand in power, steel, and sugar sectors.
CapEx Plans: Company maintains healthy net cash (~INR 600 crores) and expects INR 400 crores capex from FY26–28 to support long-term goals.
