Mumbai, April 15 (IANS) Industrial gearbox manufacturer and a premier material handling equipment (MHE) provider Elecon Engineering Company Limited on Wednesday reported a sharp 96 per cent drop in its net profit to Rs 6 crore for the fourth quarter (Q4) of FY26, mainly due to a large exceptional loss during the period.
The company had posted a net profit of Rs 146.48 crore in the same quarter previous financial year (Q4 FY25), according to its stock exchange filing.
The steep decline in profit was largely impacted by an exceptional loss of Rs 101.77 crore reported in the March quarter, compared to no such loss a year ago.
Revenue from operations also declined during the quarter. Elecon Engineering reported revenue of Rs 745.61 crore, down 6.51 per cent from Rs 797.57 crore in the year-ago period.
Operating performance remained weak as well. The company’s EBITDA fell 19 per cent year-on-year to Rs 158 crore from Rs 195 crore, while margins narrowed to 21.2 per cent from 24.4 per cent in the corresponding quarter previous financial year.
The expenses for the fourth quarter stood at Rs 621 crore, compared to Rs 626.6 crore in year-ago period, as per its regulatory filing.
Commenting on Q4 results, Prayasvin B. Patel, Chairman and Managing Director of Elecon Engineering Company Limited said that the strong open order book, combined with a healthy order inflow outlook across markets, provides good visibility for the coming year.
“In India, sustained investment activity in key sectors such as power, steel, and cement is expected to drive growth,” Patel added.
Elecon Engineering, which is one of Asia’s largest industrial gearbox manufacturers, operates across key sectors such as power, steel, cement and mining.
The company has two major business divisions -- gears and material handling equipment -- and offers products ranging from industrial gearboxes to conveyor systems and wagon tipplers.
Founded in 1951 and headquartered in Gujarat, the company has built a strong presence not only in India but also across global markets including Asia, the Middle East, the US, the UK and Africa.
--IANS
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