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Elecon Engineering shares dropped over 13%, hitting a nine-month low at Rs 440.20
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Q3 revenue rose 4.3% to Rs 552 crore, with net profit down 33% at Rs 72 crore
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EBIT margin contracted 720 basis points due to flat revenue and higher costs
Shares of Elecon Engineering Co Ltd. plunged over 13% with the stock hitting a nine-month low on Friday as the markets opened. The stock is currently trading at Rs 440.20.
Elecon Engineering posted its weakest revenue growth in six quarters, with margins under pressure. The company reported a sharp contraction of 720 basis points in EBIT margin, impacted by flat revenue, higher employee costs, and an unfavourable product mix.
Overseas operations were hit by geopolitical challenges, while gear segment revenue remained flat due to delayed order inflows.
Q3 Result Highlights (Cons, YoY):
Revenue up 4.3% at Rs 552 crore vs Rs 529 crore (YoY)
Ebitda down 23.4% at Rs 109 crore vs Rs 142.6 crore (YoY)
Margin at 19.8% vs 27% (YoY)
Net Profit down 33% at Rs 72 crore vs Rs 107.5 crore (YoY)
Guidance & Orderbook:
Elecon lowered its fiscal 2026 outlook, expecting revenue to fall up to 5% and adjusted Ebitda margins to shrink by 2%. Meanwhile, the orderbook remains strong at Rs 1,372 crore, up 24%, with order intake rising 7% to Rs 701 crore.
The positive note aspect for the company is that the revenue grew by 4.3%, rising to Rs 552 crore from Rs 529 crore year-on-year.
In addition to the financial data, the company announced that Narasimhan Raghunathan has resigned from his position as Chief Financial Officer (CFO).
Elecon Engineering Share Price Today
Elecon Engineering Share Price Today
Elecon Engineering Share Price Today
The scrip fell as much as 13.58% to Rs 435 apiece during the day. This compares to a 0.03% decline in the NSE Nifty 50 Index.
Total traded volume so far in the day stood at 0.79 times its 30-day average. The relative strength index was at 67.31.
Out of six analysts tracking the company, all six maintain a 'buy' rating, and none are maintaining a "hold" or "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 730.17 implies an downside of 26.7%.
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