Shares of Elecon Engineering fell more than 2% in intraday trade on Friday after the company reported a 60% year-on-year decline in net profit for the quarter ended June 30, 2026, alongside lower operating margins.
The stock was trading at Rs 503.60 on the NSE, down about Rs 9 from its previous close of Rs 512.35.
The results showed that higher revenue was not enough to offset weaker profitability, with both earnings before interest, tax, depreciation and amortisation and margin declining during the quarter.
Elecon Engineering Reports Lower Profit, Margin Compression
Elecon Engineering reported a consolidated net profit of Rs 70.4 crore for the first quarter of FY27, down 60% from Rs 175 crore a year earlier.
Consolidated revenue rose 6% year on year to Rs 521 crore from Rs 491 crore in the corresponding quarter last year.
Ebitda declined 16.3% to Rs 109 crore from Rs 130 crore a year ago. The Ebitda margin narrowed to 21% from 26.6%.
Commenting on the results, the company's chairman and managing director said, "The performance of the company during the quarter reflected disciplined execution and operational resilience."
The company said its order book stood at Rs 1,518 crore as of June 30, 2026. Consolidated order intake during the quarter was Rs 755 crore.
Management also said there was a temporary moderation in project execution in the Material Handling Equipment (MHE) business division.
Stock Underperforms Over One Year
Including Friday's decline, Elecon Engineering shares have fallen more than 5% over the past week. The stock has lost more than 23% over the past year, while the Nifty 500 has declined about 0.7% during the same period.
The stock has traded between Rs 352 and Rs 683 over the past 52 weeks. Based on the previous close, the company's market capitalisation stood at Rs 11,340.05 crore.
The stock was trading at a price-to-earnings ratio of 33.75 times.
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