Harsha Engineers Q4 Results Review - Healthy Improvement Led By Solar EPC, China: Prabhudas Lilladher

Prabhudas Lilladher Report

We revise our FY26/26E earnings per share estimates of Harsha Engineering Ltd. by -11.1%/-10.9% factoring in lower growth in India Engineering and slow turnaround in Romania and downgrade the rating to ‘Hold’ from ‘Accumulate’ with a revised target price of Rs 436 (Rs 441 earlier).

Harsha Engineers International reported 10.7% YoY revenue growth with Ebitda margin falling by 44 basis points YoY. Solar EPC’s annual revenue and margin outlook has vastly improved, aided by favourable renewable energy policies.

Although India Engineering’s export outlook is moderate, domestic market is seeing healthy traction led by railways and recovery in auto and Industrials.

Bronze Bushings and Stamped Components saw healthy offtake in Q4 and are expected to ramp up in FY25. China turned PAT positive in Q4 owing to revival in key customer demand and is expected to maintain its momentum in FY25.

Meanwhile Romania continues to face headwinds due to muted wind and industrial demand in Europe.

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