Elecon Engineering Q3 Results | Revenue up, net profit falls 33% on flat gear revenue, margin pressure

Elecon Engineering Company Ltd on Thursday (January 8) reported that net profit for the third quarter dropped 33% year-on-year to ₹72 crore compared with ₹107.5 crore in the corresponding quarter last year. Revenue for the quarter rose 4.3% to ₹551.7 crore from ₹528.9 crore on a year-on-year basis.

Earnings before interest, tax, depreciation and amortisation declined 23.2% to ₹109.2 crore in the December quarter, compared with ₹141.1 crore a year earlier. The EBITDA margin for the quarter stood at 19.8%,

down from 26.9% in the same period last year.

In the gear division, revenue for Q3FY26 stood at ₹429 crore, marginally higher than ₹423 crore in Q3FY25, reflecting flat growth. The performance was primarily impacted by delays in order inflows during H1FY26, which affected execution schedules and deferred dispatches as per customer timelines.

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Demand from domestic power, steel, cement, and MHE industries remained steady. EBIT for the quarter declined to ₹78 crore from ₹118 crore in the corresponding quarter last year, with the EBIT margin at 18.2%.

The margin contraction was due to flat revenue performance, increased employee costs, and changes in product mix. Despite this, healthy open orders and encouraging inquiry levels provide visibility and confidence for revenue improvement and margin recovery in the coming quarters.

In the MHE division, revenue for Q3FY26 rose 16.3% year-on-year to ₹123 crore from ₹105 crore in the corresponding quarter last year. EBIT for the division stood at ₹25 crore, with an EBIT margin of 20.2%, down from 30.9% in Q3FY25.

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The margin decline was attributed to an unfavourable product mix during the quarter. The division continues to secure new orders consistently in the domestic market and anticipates order inflows from international markets going forward. A healthy open order book and a strong inquiry pipeline provide reason for optimism in the subsequent quarters.

Prayasvin B Patel, Chairman & Managing Director of Elecon Engineering, said, "Order-in-take for the quarter was ₹701 crore, and our order book as at 31st December 2025 stood at ₹1,372 crore. The strong order book, combined with a healthy order inflow outlook across both domestic and overseas markets, provides good visibility and confidence going forward."

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Shares of Elecon Engineering Company Ltd ended at ₹504, down by ₹13.85, or 2.67%, on the BSE today, January 8.