Synopsis:- Shares corrected sharply after weak Q3FY26 results, with profit down 33% YoY and margins under pressure due to delayed orders. Despite this, a strong Rs 1,372 crore order book, Rs 701 crore quarterly inflows, and operations across 95+ countries support medium-term recovery visibility.
The shares this global leader in industrial gear solutions plummeted up to 16 percent in today’s trading session after the company reported negative results, primarily due to delays in order inflows during H1 FY26.
With a market capitalization of Rs 9,797.30 crore, the shares of Elecon Engineering Company Ltd were trading at Rs 436.60 per share, decreasing around 13.11 percent compared to the previous closing price of Rs 502.50 apiece.
Q3FY26 Highlights
The shares of Elecon Engineering Company Ltd have shown bearish movement after announcing its financial performance in Q3FY26, in which revenue increased by 4 percent on a year-on-year basis from Rs 529 crore in Q3FY25 to Rs 552 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue slipped by 4 percent from Rs 578 crore in Q2FY26 to Rs 552 crore in Q3FY26.
Moreover, net profit declined sharply on a year-on-year basis by 33%, falling from Rs 108 crore in Q3FY25 to Rs 72 crore in Q3FY26. On a quarterly basis, profit dropped 18% from Rs 88 crore in Q2FY26, highlighting continued margin pressure and higher cost impact during the period.
Elecon Engineering’s Gear Division delivered muted performance in Q3FY26. Revenue edged up just 1.3% YoY to Rs 429 crore as delayed order inflows in H1FY26 impacted execution. EBIT declined sharply by 33.6% YoY to Rs 78 crore, with margins compressing to 18.2% due to flat volumes, higher employee costs, and product mix changes.
In contrast, the MHE Division showed strong topline momentum. Q3FY26 revenue rose 16.3% YoY to Rs 123 crore, while 9MFY26 revenue surged 48.7% to Rs 393 crore. However, quarterly EBIT fell 24% YoY to Rs 25 crore, and margins dropped to 20.2% due to an unfavourable mix. A healthy order book supports recovery ahead.
The company reported a healthy order intake of Rs 701 crore during the quarter, taking the total order book to Rs 1,372 crore as of December 31, 2025. This strong backlog, supported by steady domestic and overseas enquiries, enhances revenue visibility and provides confidence in sustained execution and growth ahead.
The company has built a strong global footprint backed by a wide distribution network. Domestically, it operates one manufacturing facility supported by 13 sales offices, 65+ distributors, and 60+ customer representatives. Internationally, presence spans over 95 countries with four manufacturing or assembly centres, 110+ distributors, and 35+ customer representatives, supporting scalable growth.
The company maintains strong relationships with marquee clients such as Adani Group, Tata Steel, ArcelorMittal, NTPC, Larsen & Toubro, UltraTech Cement, and BHEL. This diversified blue-chip client base across gear and MHE segments supports repeat orders, strong credibility, and long-term business visibility.
A prominent ace investor, Vijay Kishanlal Kedia, holds 2,250,000 equity shares, which is equivalent to 1 percent in the company. Elecon Engineering Company is a leading Indian manufacturer of industrial gears and material handling equipment. With decades of engineering expertise, global presence, and strong relationships across core industries, the company delivers customised, high-quality solutions for sectors such as power, steel, cement, mining, and infrastructure.
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