Short Summary (Q3 FY26)
• Revenue: ₹552 cr (+4.3% YoY); execution delays, not demand. ~₹30–40 cr dispatches pushed to Jan–Feb.
• Orders: Intake ₹701 cr (+7% YoY); order book rising despite flat revenues.
Gears (78% revenue):
• Revenue ₹429 cr (~flat YoY). Demand healthy; execution pushed to FY27 for power projects.
• EBIT margin fell to 18.2% (vs 27.8%) due to lower operating leverage, higher costs, weaker export mix, and one-off Navy order (≈2–3% EBIT impact).
MHE:
• Revenue ₹123 cr (+16% YoY); order intake ₹237 cr.
• Industry tailwind as McNally bankrupt, TRF exits MHE; Elecon focused on equipment + after-sales.
Profitability & BS:
• EBITDA ₹109 cr (19.8% margin); PAT ₹72 cr.
• Net cash ~₹600 cr; capex plan ₹400 cr (FY26–28).
Guidance:
• FY26 revenue cut by ~5%; EBITDA margin down ~2%.
• Management confident of Q4 execution pickup and margin normalization.
Key takeaway: Execution timing hurt Q3, not demand; order book strong, margins expected to recover with volumes.
Leave a Reply