Elecon Engineering's revenue grew 6.20% to Rs. 2,366 crore in FY26, order intake increased by 20% Y-o-Y, and the company focused on expanding its global presence through OEM partnerships

Elecon Engineering's revenue grew 6.20% to Rs. 2,366 crore in FY26, order intake increased by 20% Y-o-Y, and the company focused on expanding its global presence through OEM partnerships

- The consolidated order intake was at Rs. 2,660 Crore, growing by 11.80%, while the closing order book rose to Rs. 1,292 Crore
- The Gear Division encountered temporary headwinds during the year and reported revenue of Rs. 1,699 Crore
- Global strategy by establishing a presence in Mexico—marking Elecon entry into Latin America

The Electrical Post

Founded in 1951, Elecon Engineering Company Limited began as a homegrown engineering enterprise. Over seven decades, it has grown into a globally relevant industrial solutions company. Scale has expanded. Markets have broadened. Capabilities have deepened. Yet our foundation remains unchanged: engineering strength, industrial relevance, and values-led execution.

Today, as Elecon marks 75 years of its journey, it is particularly gratifying to see the fourth generation stepping forward—not just as custodians of a legacy, but as architects of the future—committed with the same passion and long-term vision to taking Elecon to a position of global leadership in engineering excellence.

Redefining Our Context 

FY 2025–26 unfolded in a world marked by complexity. Geopolitical tensions, shifting trade dynamics, and cautious industrial investments shaped global markets. Yet such environments also serve as inflection points—separating companies that react from those that define direction. India, in contrast, continued to demonstrate structural strength, led by sustained infrastructure investment, a resilient domestic economy, and a clear manufacturing agenda. The long-term demand drivers across power, cement, steel, mining, and material handling remain firmly intact.

At Elecon, we do not view uncertainty as a constraint—we view it as a test of capability and opportunity. With deep sectoral expertise, diversified markets, and alignment with national priorities such as Aatmanirbhar Bharat, we see a multi-year opportunity to expand our relevance—not just in India, but globally.

Performance with Perspective 

FY 2025–26 was a year that tested execution discipline while reaffirming the strength of our fundamentals. Consolidated revenue grew 6.20% to Rs. 2,366 Crore. EBITDA stood at Rs. 523 Crore with an EBITDA margin of 22.10%, while reported PAT came in at Rs. 341 Crore, delivering a PAT margin of 14.40%. The consolidated order intake was at Rs. 2,660 Crore, growing by 11.80%, while the closing order book rose to Rs. 1,292 Crore, reinforcing the strength of our demand pipeline.

The Gear Division encountered temporary headwinds during the year and reported revenue of Rs. 1,699 Crore, with an EBIT of Rs. 319 Crore, resulting in an EBIT margin of 18.80%. Performance during the year was impacted by deferred customer deliveries, delayed materialisation of order inflows in certain segments, and supply chain disruptions. Nevertheless, demand remains strong, customer confidence remains intact, and our relevance in core industries continues to deepen. This is reflected in the closing order book of Rs. 894 Crore—an increase of over 53% Y-o-Y—providing strong forward visibility and positioning the business for accelerated execution as conditions normalise.

In contrast, the MHE Division demonstrated the power of strategic clarity. Revenue grew 43.60% to Rs. 667 Crore, driven by a deliberate shift towards engineering excellence, integration, and value-added offerings. EBIT for the division stood at Rs. 184 Crore with a margin of 27.60%. This is not cyclical growth—it is structural transformation. The closing order book for the division is Rs. 398 Crore.

We also took a decisive step in our global strategy by establishing a presence in Mexico—marking our entry into Latin America. This is part of a broader ambition: to expand Elecon’s global footprint with intent and scale. Our overseas business remained stable despite global volatility, and the performance of our overseas business remained resilient, with revenues maintained at levels comparable to the previous year, while order intake increased by 20% Y-o-Y and the closing order book increased by 50% Y-o-Y, signalling strong traction and future momentum.

Built to Endure. Built to Lead. 

Resilience is not an outcome—it is a design principle. Elecon’s strength lies in the way the business has been built. We boast a diversified sectoral presence that insulates us from single-cycle dependency, long-standing customer relationships coupled with ~70% repeat business and engineering depth that allows us to solve complex, critical challenges. We have consciously chosen discipline over expansion for its own sake. The exit from legacy EPC contracts in the MHE Division is a case in point—a decision that prioritised long-term value creation over short-term scale. That decision is yielding results in the form of stronger margins, higher quality revenue, and a structurally superior business.

Today, our balance sheet provides strength, not constraint. We continue to maintain a net cash position and possess the financial flexibility to invest in growth while preserving long-term stability. This is how enduring institutions are built—not through momentum, but through intent.

Shaping the Future 

Our ambition is clear: to position Elecon among the leading global engineering companies in our domain. To achieve this, we are sharply focused on expanding our global presence through OEM partnerships and distribution networks with the aim of balancing the share of exports in our consolidated revenue mix. 

Furthermore, building a strong, recurring aftermarket business, investing in advanced engineering, digital integration, and product innovation is a strategic focus, which we are continuously working towards. We see sustained growth opportunities across power, steel, cement, mining, and ports—supported by targeted capital investments and execution excellence. Innovation remains central to our future. Our continued investments in R&D are enabling us to push the boundaries of performance, efficiency, and reliability. The approval of four patents, with more in progress, reflects a clear direction: to move up the value curve.

We believe that the future of engineering will be defined not just by performance, but by responsibility. Our SBTi approved decarbonisation roadmap commits us to reducing Scope 1 and 2 emissions by ~54.60% by FY 2032-33 (from a FY 2022-23 baseline). Around 55% of our energy consumption is already sourced from renewables.

The above report has been extracted from the speech of Mr. PRAYASVIN B. PATEL, Chairman & Managing Director of Elecon Engineering’s annual report for Fy 25-26
 

Published at : Sep 21, 2026 01:20 PM (IST)

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